Basic Terms and Conditions of Insurance of Export Buyer Credit against the risk of non payment
Insurance under the General Insurance Terms and Conditions, type "D"
- the maximum credit amount is 85% of the export contract value1
- the share of value of supplies of goods and services originating in the Czech Republic in the total export value2 is higher than 50%,
- the share of Local Costs does not exceed 15%, or exceptionally 30% of the export contract value3,1,
- prepayment (deposit) of at least 15% of the export contract value must be paid by the importer (debtor) before the Starting Point4 to the exporter's bank account maintained by the insured bank1,
- readiness and funding of manufacturing of the subject of export is provided,
- trouble-free credit history5 of the entities6,
- environmental and social impact assessment1 and non-application of international sanctions towards entities involved in the export, goods or territory or area,
- in negotiating the export credit, the exporter did not violate provisions of norms and practices of international law the Czech Republic is bound by, and legal regulations in the area of bribing were not violated,
- the entity6 has existed and executed the activity being the subject of export / activity as a bank for no less than 2 years before submitting the preliminary application for insurance of export buyer credit or its activity follows up on the activity of its legal predecessor, carried out for no less than 2 years before submitting the application for insurance of export buyer credit.
- Credit insurance/claims in connection with the export of selected agricultural products listed in annex No. 1 of the Agreement on Agriculture, which is part of the Agreement Establishing the World Trade Organization (WTO), the maximum repayment term shall not exceed 18 months (from the starting point of credit to the end of the contractual date of the final payment).
1 applicable to credits with the maturity of two years or more only
2 price agreed in the Export Contract
3 The export contract value according to the OECD Consensus represents the value of supplies from the Czech Republic and third countries, i.e. the export contract value less the value of local supplies, so called Local Costs
4 Starting Point according to the OECD Consensus
5 The trouble-free credit history shall be interpreted as absence of record on the Subject' default payment (of principal as well as accessories) in the register of credits for the term of no less than last 5 years. In the CR, it is the Central Credit Register maintained by the CNB (for legal entities having credits in banks or subsidiaries of foreign banks operating in CR's territory), a similar register exists abroad. The "bank and non-bank register of client information" and "Solus" exist for natural persons being in the role of sponsor or guarantor
6 persons involved in the export and its funding