22.01.2007
EGAP reduces prices of insurance

On the basis of good economic results in the last year, the Export Guarantee and Insurance Corporation (EGAP) has reduced prices for the insurance with the state support by 10%.

The price reduction is has been effected by cancellation of a surcharge for a supplementary insurance of exchange rate risks ensuring fore the exporter or a bank that EGAP uses a current exchange rate for the calculation from a foreign currency in which the credit was extended to Czech crowns in indemnification payment. A great majority of clients had arranged for this insurance because without it, they would be exposed to the risk of change in the exchange rate between the Czech crown and the foreign currency. Now this risk is fully taken over by EGAP and is covered by basic insurance premium rates. It means for clients of the insurance company that with expenses for the insurance lower by 10 % EGAP will pay in case there is am insurance loss the same amount in the Czech crowns they would have received if the payment were in the foreign currency. The reduction in the insurance premium refers not only to export supplier and buyer credits but also to credits for the pre-export financing, for the financing of Czech investment in foreign countries as well as bank guarantees for performance of an exporter. Assuming the exchange rate risk and corresponding lowering of the burden for the exporter is a further step of EGAP in support of competitiveness of the Czech exporters on international markets.

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