Bank guarantee run-off: the work is done, the bond stands in full

Type each guarantee with its value, issue month and run off rule. The outstanding total is summed month by month, and on the worked programme it first fits in month 5.

Live result

The total first sits below the headroom you typed in month 5.

Headroom typed50 value units
Total that month40 value units

The largest contributor there is Advance.

Outstanding total month by month

Try a programme

Certified progress each month10% per month

This is the one dominant control. It moves only the progress linked rules. Fixed release months stay as typed.

Edit the programme and instruments

Programme length

Available headroom

Instrument 1

Instrument name

Face value

Issue month

Reduction rule

Reduction starts at certified progress%

Exposure reaches 0 at certified progress%

At least 1 instrument is required.

The tracked answer

Reading: First month strictly below
Month: 5
Largest contributor at the answer month: Advance
Outstanding total at the answer: 40

Equality is not below. A month qualifies only when the total is strictly less than the headroom typed.

The boundary where this stopsIt replays the reduction rules typed by the visitor and does not read an instrument, promise release, or represent facility availability.

Contributions at the answer month

Month 5

Advance: 40

Instrument	Outstanding value
Advance	40

Certified progress each month

From%

To%

In steps of%

It does not check the values in between.

Across the values sampled, the first month below headroom and the largest contributor there stays month 5, Advance from 9 % to 10 %. The nearest value where it changes is 11 %, where it becomes month 4, Advance.

The answer	month 5, Advance
Values sampled	0 % to 20 %, 21 values, step 1 %
Holds from	9 %
Holds to	10 %
Nearest value that changes it	11 %
The answer there	month 4, Advance

What an unchanged region does and does not prove is set out in a short lesson.

The sweep samples only the values you entered. Between samples the answer is not checked, so read the boundary as observed, not proven.

Here is the maths

The formula, in words

Before issue, an instrument contributes 0. A fixed rule contributes face value until its release month. A progress rule falls linearly between the start and zero fractions. A stepped rule uses the remaining fraction on the last certified threshold reached. Add every contribution for each whole month, then take the first total strictly below headroom.

T_m=\sum_i V_i r_{i,m}

where

T_m

is the outstanding total in month

m

i

each instrument,

V_i

its face value, and

r_{i,m}

its remaining fraction.

m_* = \min\{m:T_m<H\}

where

m_*

is the first qualifying month and

H

headroom.

A worked example

One advance instrument has face value 100, starts in month 0 and falls linearly from 0 to 100% certified progress. The monthly rate is 10% and headroom is 50.
The totals in months 0 through 4 are 90, 80, 70, 60 and 50. Month 4 is equal to headroom, so it does not qualify.
Month 5 has 60% certified progress and 40% remaining, so the outstanding total is 40. The answer is month 5 and Advance is the largest contributor.

What this does not model

Every reduction rule, issue month, release month, threshold and value is typed. No rule is inferred from an instrument name.

The replay does not read an instrument, test its wording, predict certification or represent bank facility availability.

A month returned by this arithmetic is not a promise that an instrument will be reduced or released then.

What the sweep holds fixed

Only certified progress per month moves from 0 through 20%. Programme length, issue months, face values, reduction rules, milestones and headroom stay fixed. A fixed release date does not move.

Source anchors

Published World Bank procurement material describes instruments that remain valid until repayment and can reduce as repayment is made. This page does not reproduce a form or assume its wording applies to a typed instrument.

The reduction rules on screen come only from the values typed here.

The whole record prints. Your browser can save it as a PDF instead of printing it.

A request to interpret an instrument or promise its release is refused. These totals describe only the typed rules and values, and they do not establish what a bank, issuer, beneficiary or certifier will do.

Outstanding bond record