CInsurance of a Medium and Long Term Export Supplier Credit against the Risk of Non Payment

The export supplier's credit is a credit provided by the exporter to the importer (foreign entity) in the form of deferral of payment for the delivered goods or services (export claim). The insurance terms and conditions shall follow the rules of OECD Consensus (Arrangement on Officially Supported Export Credits).

The maturity of the middle-term and long-term export supplier's credit (export claim) is longer than 2 years and the importer shall pay in advance (advance payment) minimally 15 % of the total export value (price agreed in the export contract).

According to the rules set by OECD, the insured export is subject to evaluation of its influence on the life and social environment. In some selected cases, EGAP may require from the exporter an expert's opinion on the influence of export on the environment in importer´s country.

The export supplier's credit has not a character of a bank credit.

The insured entity is directly the exporter against the risk that the importer does not pay in the due date properly the whole owing sum, i.e. the price for the delivered goods and services (export claim).

The subject of insurance are export claims, i.e. claims of the insured towards the importer from export supplier's credit i.e. claims for payment of obligations following from export contract (payment for delivered goods and services) specified in the insurance policy.

The insured event is a partial or complete non-payment of the insured export claim due to commercial or territorial reasons or their combination. Commercial reasons are: general importer's incapacity to pay his due obligations (financial insolvency) or rejection of payment without legal reason (unwillingness to pay). Among territorial reasons are e.g. administrative decisions or legislative measures of importer´s country hindering him to pay or limitation of conversion of payments due to political events in importer´s country, as well as other events in importer´s country, as war, revolutions, civil commotions and natural catastrophes.

The amount of premium depends on the export volume, agreed payment terms and conditions, way of payment reinsurance, evaluation of character and risk rating of importer, evaluation of risk exposure of the country or territories associated with the performance of export contract and on the deductible amount. The agreed amount of premium includes already the possible increase or decrease of risk insured and is unchangeable for the whole term of insurance duration.

The preliminary premium calculation is available through interactive calculator.

• maximum credit amount is 85 % of the total export value1
• the share of value of supplies with the origin in the Czech Republic in the export value – rules you can find here,
• the share of Local Costs does not exceed 40% of the Export Contract Value for category I countries, and 50% of the Export Contract Value for category II countries 2,
• trouble-free credit history3 of subjects4,
• evaluation of export influence on the life and social environment and non-applying international sanctions
• the subject4 has existed and executed the activity being the subject of export minimally for 2 years before submitting the application for insurance of middle-term and long-term export supplier's credit against the risk of non-payment or its activity follows up his legal predecessor's activity, carried out minimally for 2 years before submitting the application for insurance of middle-term and long-term export supplier's credit.