D Insurance of an export buyer credit against the risk of non payment Brief description of the insurance product and contacts

I. Brief description of the insurance product

The export buyer credit is a loan granted by a bank to an importer for purchase of goods or services. The bank makes the payment to the exporter on behalf of the importer for deliveries of goods and services (export). The amount owed is consequently paid off by instalments by the importer under terms stipulated in the credit contract. In some cases, the credit recipient and subsequently the debtor is the importer's bank (indirect buyer credit). The payback period of an export buyer credit is essentially longer than 2 years. Mainly due to the fact that the insurance terms and conditions observe the rules of the OECD Consensus, it is required that the importer pay at least 15% of the export contract value in advance. Bank is the insured party against the risks of non-payment of the provided export buyer credit under the defined schedule.

The insurance of an export buyer credit may also include insurance of cases of funding of projects, and exceptionally also short-tail buyer credits under conditions stipulated by European Union regulations.

The subject of insurance is the insured party's receivables from the debtor under the export contract, i.e. mainly payment of the credit principal, interest on the credit principal and fees for reserving funds under the credit contract.

The insured event is a partial or complete non-payment of the insured receivable due to commercial or territorial reasons or their combination.

Commercial reasons are: claimed importer's incapacity to pay his due obligations (financial insolvency) or rejection of payment without legal reason (unwillingness to pay).

The premium amount depends on the extent of the risk insured, assessing of the nature and risk level of the export, i.e. in particular the volume of export, the agreed payment terms, the payment guarantee method, assessing of the nature and risk level of the importer, risk assessment of the country or territory associated with performance of the export contract and the term and amount of the funding provided, and the amount of deductible.

Preliminary premium calculation can be done through the interactive calculator.

Dana Pučelíková, Director of Export Credit Insurance Department
phone:+420 222 842 314
fax:+420 222 844 130

Michal Janků, Head of Sub-Department for Insurance of Political Risks I.
phone:+420 222 842 354
fax:+420 222 844 130

Pavel Němeček, Head of Sub-Department for Insurance of Political Risks II.
phone:+420 222 842 313
fax:+420 222 844 130

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