Preliminary results in 2008

EGAP concluded 286 insurance contracts and insured export credits, bank guarantees and investments in foreign countries in the total value of CZK43 billion in 2008. The achieved result exceeded the expected business plan by about 10 per cent and it was the second best one in the whole history of EGAP after the record volume of CZK50 billion in 2007. The multiplication effect of newly concluded contracts, primarily contracts for insurance of bank guarantees, is at the same time severalfold. In 2008 EGAP made possible with its insurance realization of contracts in the total worth of approximately CZK95 billion.

Altogether, EGAP insured Czech exports to 56 countries worldwide in the last year, most of it to Russian Federation which participated by almost one half in the total insured volume. As an example, insurance of deliveries of technology and construction of the steam-gas power plant in Kurgansk with the insurance value of almost CZK6.5 billion belonged among the largest projects.

From the aspect of individual insurance products, the greatest interest was in insurance of an export buyer credit extended by a bank of a Czech exporter to a foreign buyer or his bank. A quarter of all concluded contracts falls on this type of insurance as well as CZK17.5 billion out of the total insured volume.

For the whole duration of its operation (1992 - 2008) EGAP insured with state support export credits, bank guarantees and investments in foreign countries exceeding CZK350 billion.

For 2009, EGAP has prepared a number of new measures aiming at assisting Czech exporters of goods, services and investments in overcoming global financial crisis and slowdown in economic growth. In compliance with international rules for officially supported exports, EGAP as one of a few state credit insurance companies moved to a temporarily increase of insurance cover of the risk of non-payment of all types of the export credits from 95 to 99 per cent. It acted similarly also in bank guarantees issued in relation to export contracts and it increased insurance cover of up to 100 per cent in insurance of Czech investments in foreign countries against political risks. It means in practice for the Czech exporters, investors and their banks a significant lowering of risk levels of the exports and substantial savings of costs connected with the arranging the self-retention, which recently makes out only 1 per cent or it is even zero per cent. Insurance cover was raised also for Letters of Credit where it increased temporarily from 80 per cent to 99 per cent in the interest of a quicker processing of short-term financing from foreign banks and increasing limits of foreign financial institutions with banks operating on the Czech market. Further, EGAP considerably reduced the price of insurance of the so-called manufacturing risk and offered relief also to Czech investors who combine their own resources with the insured bank credit for realization of their intentions in foreign countries. Apart from it, it modified several existing insurance products, e.g. those for needs of so-called project finance or for developer purposes or for financing of commercial application and following export of results of science and research in the form of patents, licences and like. An entirely new type of insurance is also the insurance of prospection of foreign markets aimed primarily at small and medium-sized enterprises.

© EGAP  2018
Site Map