The Export Guarantee and Insurance Corporation has extended its offer of the export insurance with state support by modifications of the insurance of export supplier credits (insurance of the type "B" and "C"). The modifications are intended for banks engaged in the export financing.
The modifications of existing types of the insurance of the export supplier credits consists in particularly in a consistent separation of responsibilities of banks from responsibilities of exporters arising from export contracts; this enablers banks to purchase without any apprehension from the exporters their export receivables in the form of supplier credits (time deferral of payments for delivered goods and services) extended to foreign buyers. The insurance contract concluded by and between EGAP and the bank is also signed by the exporter who acknowledges with this signature his own rights and obligations including the obligation to reimburse EGAP for losses arising due to exporter's fault.
Conditions of the insurance of types "Bf" and "Cf" are in full compliance with new capital adequacy rules "Basel II" and enable the banks to continue allocating zero risk weighting to credits insured with EGAP.
The insurance of the types "Bf" and "Cf" has been prepared by EGAP in close cooperation with the banking sector with aim of enabling banks to react flexibly to needs of their clients and helping exporters to acquire financial funds for realization of further contracts by selling of their export receivables.