If - Annex No. 1 to the preliminary application - Basic terms and conditions of credit insurance for investments abroad

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Annex No. 1
to the preliminary application for Insurance of a Credit for Investment in Foreign Countries
against the Risk of Non Repayment of the Credit
Basic terms and conditions of credit insurance for investments abroad “If”
  • the share of own investor's resources for financing the investment abroad is minimally 20 % of the investment value, for investments with elements of financing projects minimally 25 %
  • investor's guarantee in the scope approved by EGAP for the obligations of foreign company being the subject of investment, if this foreign company is the debtor
  • investor's investment will be insured by EGAP insurance of „I“ type
  • investments (shares or investor's interest in the foreign company) will be pledged to the benefit of insured bank; depending on legal possibilities, also the property of foreign company being the investment subject will be pledged
  • the insurance of foreign company property will be bonded by coding the account to the benefit of insured bank
  • the purposefulness of drawing the credit will be checked at cost of the foreign company being the subject of investment, or of investor by an independent inspection company determined by the insured bank in the agreed scope (except for the credit for acquiring the share in foreign company)
  • for the term credit repayment, the payment of share in profit, important changes in property and obligations and change of owners of investor and foreign company being the subject of investment will be subject to approval by insured bank
  • trouble-free credit history1 of Subjects2 participating in investment
  • evaluation of investment influence on the life and social environment in the target country and non-applying international sanctions
  • investor's claims towards the foreign company being the subject of investment, following from the expended investment,will be subject to credit for investment or pledged to the benefit of insured bank
  • The subject2 has existed and executed the activity being the subject of investment, minimally for 2 years before submitting the application for insurance of credit for investments abroad or its activity follows up his legal predecessor's activity, carried out minimally for 2 years before submitting the application for insurance of credit for investments abroad (this does not concern the foreign company if newly established by the investor).

1 The trouble-free credit history shall be interpreted as absence of record on Subject's default payment (of principal as well as accessories) in the credits register for the term of minimally last 5 years. In the CR, it is the Central Credit Register maintained by ČNB (for legal entities, having the credits in banks or subsidiaries of foreign banks operating on CR's territory), a similar register exists abroad. The "bank and non-bank register of client information" and "Solus" exists for natural persons being in the role of sponsor or guarantor

2 entities participating in the investment and its financing - bank (except for a bank with registered office in the CR – as per the Bank Act), investor, the foreign company and guarantor

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