Payment guarantees are irrevocable pledges to make payment that are issued to third parties to ensure that at the end of a period of time and up to a ceiling amount, a transaction will be faithfully completed, which is a sort of real guarantee.

They are used by state institutions to acquire goods and services; however, they are also used by private enterprise in direct private, public, and international invitations to bid.

Participation bonds ensure faithful participation by the providers of goods and services when they are awarded a bid to ensure that they fulfill the procedures related to the award.

Performance bonds are used as backup for the company acquiring the goods and services to ensure that they are delivered or provided under the stipulated terms and to ensure that, in the case of failure to perform, the company has a source of indemnification.

There are other types of guarantees such as tax bonds that are used to ensure the General Customs Directorate of the Ministry of Finance that taxes will be paid on merchandise entering the country when the merchandise must be released from a fiscal district leaving the tax payment temporarily outstanding.

This instrument is used to temporarily bring in merchandise and for merchandise that must be displayed and it is not certain whether the buyer is tax exempt.

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