in the capitalist countries the form of loan capital allocated by one industrial or commercial enterprise to another under the guarantee of a bank or of a government department or institution. Guaranteed credits of bank or special credit institutions in the 1960’s were primarily long-term credits. The bourgeois state is often the guarantor of the obligations of the largest monopolies. For example, in 1967 the government of the Federal Republic of Germany granted to the banks financing the Krupp concern a guarantee of 300 million German marks. Guarantees are granted most often in the area of export credits; state guarantees are especially prevalent in the export of entrepreneurial and loan capital, including guaranteed loans. In the USA a major guarantor is the Export-Import Bank; similar guarantors in Japan are the Export-Import Bank and the Overseas Economic Cooperation Fund; in the Federal Republic of Germany, the Credit Institute for Restoration; and in France, the French Insurance Company for Foreign Trade and the National Bank (Crédit National).
In the socialist countries guaranteed credits are used mainly in financing foreign trade. The International Bank of Economic Cooperation gives guarantees for export credits (as a rule short-term ones) with a view toward expanding trade relations between the socialist countries as well as between socialist and capitalist countries and especially between socialist and developing countries. With the growth of the economic independence of enterprises and the possibilities (in some socialist countries) of entry of enterprises or production associations into foreign markets, the sphere of guaranteed credits is widening.
V. E. RYBALKIN