What is a counter-guarantee?

A counter-guarantee is a guarantee obligation that is not issued directly by the government, but by an intermediary such as a foundation. The government acts as an indirect guarantor in this case and will only be called upon if the intermediary cannot meet its obligations. This construction is often used in the context of the Dutch national budget, where the government offers an extra layer of protection without directly bearing the responsibility itself.

This term is relevant in situations where the government is involved in guaranteeing financial obligations, but does not do so directly. It offers extra security for loans or other financial obligations, with the government only acting as a last resort.