skuldarábyrgða
Skuldarábyrgða, also known as debt guarantee, is a financial arrangement where one party, known as the guarantor, agrees to take responsibility for the debt of another party, known as the debtor. This arrangement is typically used to provide additional security to a loan or credit agreement, reducing the risk for the lender. The guarantor's responsibility is to repay the debt if the debtor fails to do so, either by making payments or by refinancing the debt.
The primary purpose of skuldarábyrgða is to enhance the creditworthiness of the debtor in the eyes of
However, skuldarábyrgða also comes with certain risks and responsibilities for the guarantor. The guarantor is personally
In some cases, skuldarábyrgða can be a mutually beneficial arrangement for both the debtor and the guarantor.