Just as the terms „participation“ and „syndication“ are generally used synonymously, it should be noted that there are significant legal and structural differences between risk equity and syndicated loans. The difference between risk participation and syndicated credit lies in the credit structures used in both financing agreements. A guarantee is used to finance imports and is a perfect instrument to protect importers and exporters in international trade. A guarantee offers a promise of performance and payment to an exporter in international trade. A lender that has provided a bank guarantee to a borrower may sell its shares in that credit facility to a participant and the transfer of that interest is ensured by a framework participation agreement. Guarantees are mainly used for uncovered risk-taking. . .