The Export Guarantee and Insurance Corporation, commonly known as EGAP, is 15 years old this year. Although this is not a very rounded off anniversary, EGAP has made such development since its establishment in 1992 that it is well worth to look back and to recall some things from this short but rich history. Beginnings were very modest. We were standing, figuratively speaking, on a green field and were looking around in neighbouring countries how the credit insurance was done. There was nothing to take up from although the first credit insurance company was established in our country in 1929 and, 4 years thereafter, the special state fund for the insurance of export credits against political risks was created. Both were swept away by the world war and by following decades of deviation from market principles. And, moreover, several years after their return, there was no commercial credit insurance company in operation. It was necessary to develop the insurance of short-term receivables alongside the insurance of political risks related to the export; this was the main reason for establishment of EGAP. In this way, Czech companies had at their disposal the full variety of services as had been accessible to their competition in developed European countries. We started on 1 June 1992 and we concluded only a couple of insurance contracts for the insurance of short-term receivables, 2 insurance promise contracts for long-term credits and we have received less than CZK 100,000 as the premium written until the end of that year. Czech entrepreneurs were confronted with new problems in the export, they had no experience with the credit insurance, banks were in the same position so we all were learning together. We have always been trying to listen to our clients very carefully and we have been trying to be a proverbial step ahead and not to wait for outside stimuli when developing new types of the insurance. Thus the variety of our products grew very quickly and, simultaneously, grew the insured volumes. The very next year we accomplished to conclude more than 40 insurance policies for the insurance of export contracts in the total worth exceeding CZK 3 billion. The commercial credit insurance was also developing dynamically and, gradually, it started to be prevalent in the insured volumes thanks to its expansion to domestic receivables. Since 1992, we have insured credits amounting to almost CZK 840 billion, we have given hundreds of clients protection from serious financial problems and we assisted in realizing of tens of thousands of business transactions. You can find 15 of the biggest deals on following pages as a reminder of 15 years of EGAP’s activities. In addition to it, we have prepared a CD with songs which take you away to countries of selected export deals. I wish you a pleasant listening and much success in business. Do not forget that when accepting a risk, the best way is to do it always with us!
Chairman of the Board of Directors
and Managing Director