1. Explain Bid bond guarantee, Advance payment guarantee, Performance guarantee. 2. What are different SWIFT messages generated as part of Letter of Credit? 3. Difference between LC and Guarantee. 4. Difference between Import LC and Export LC. 5. What is guarantee and its lifecycle. 6. What are the new SWIFT messages which will be implemented as part of SWIFT changes (Guarantee related new MT messages) ?

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Questions related to Bid bond, Advance payment, Performance guarantee, SWIFT messages, and LC vs Guarantee.

Bid bond guarantee is a type of guarantee that ensures the bidder will accept the contract if awarded.
Advance payment guarantee is a type of guarantee that ensures the supplier will return the advance payment if they fail to deliver the goods or services.
Performance guarantee is a type of guarantee that ensures the supplier will perform the contract as per the terms and conditions.
SWIFT messages generated as part of Letter of Credit include MT700, MT701, MT707, MT710, MT711, MT720, MT721, MT740, MT741, MT742, MT747, MT748, MT749.
LC is a payment mechanism that ensures the payment will be made to the supplier if they meet the terms and conditions of the contract, while Guarantee is a type of security that ensures the payment will be made if the supplier fails to perform the contract.
Import LC is issued by the importer's bank to the supplier's bank, while Export LC is issued by the supplier's bank to the importer's bank.
Guarantee lifecycle includes issuance, amendment, claim, and release.
New SWIFT messages related to Guarantee include MT760, MT767, MT768, MT769, MT798.