Sovereign Guarantee
/ˈsɒvrɪn ˌɡærənˈtiː/
Definitions
- (n.) A formal promise by a sovereign state to fulfill an obligation, typically guaranteeing payment or performance of a third party.
The sovereign guarantee ensured repayment of the loan if the company defaulted.
Forms
- sovereign guarantee
- sovereign guarantees
Related terms
See also
Commentary
Often used in international finance and public contracts, sovereign guarantees imply state-backed assurance, important to assess sovereign risk and enforceability across jurisdictions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.