Buyer’s Credit Insurance

Buyer’s Credit Insurance - insurance of export contracts with credit terms of two years and more

Insurance backed by the State Treasury

Key benefits

• we allow a bank to safely finance an export contract with a credit with repayment terms of two years and more
• insurance conditions meet international standards set by OECD and the European Union
• it is possible to obtain a promise of cover for a period of 6 months
• we are able to pay indemnity in the currency of the credit agreement
• the insurance policy serves as collateral authorizing banks to reduce the base for creating special purpose reserves for a specific agreement for up to 100% of the amount insured
• we facilitate access to the DOKE Program (subsidies for export credit subject to fixed CIRR interest rates) administered by the Bank of National Economy (Bank Gospodarstwa Krajowego)
• one-stop-shop for multisourced export projects i.e. projects performed by exporters from several countries in the third country are covered under a single policy
• exporters are able to obtain supplemental cover against pre-shipment risk

Entities eligible
Banks or other institutions financing export contracts performed by Polish businesses.

Subject of the insurance
Credit plus interest extended by a financing institution (on the basis of a loan agreement) to a foreign trading partner or its bank, for financing a specific export contract for deliveries of domestic goods and services financed under credit terms of two years and more.

Insurance cover can also be provided for banking fees and credit for financing the insurance premium.

Scope of cover
Post-shipment risk - the bank or institution financing the export of domestic goods and services obtains cover against the inability to recover the credit receivables (together with interest) granted on the basis of a loan agreement. The insurance protection begins as the debtor utilizes credit granted by the Insured.

Within post-shipment risk, the cover is available for causes of loss defined as commercial risk (bankruptcy, default) and political risks (decisions and legal regulations in the country of the debtor, payment moratoria, inability of making the transfer of receivables, decisions in the insurer´s country, force majeure).

We cover most international markets.

Costs
Pricing is based on a number o variables: country risk, type of debtor or guarantor (private or public), credit repayment period, credit disbursement period, scope of cover. Our premium rates are harmonized with the OECD minimum premium benchmark system adopted by countries which have signed the so-called OECD Consensus.

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