Z Insurance of a Bank Guarantee Issued in Relation to Fulfilment of Conditions for Winning or Performing an Export Contract Short description of insurance product and contacts

I. Short description of insurance product

The bank guarantee is bank's obligation to satisfy the beneficiary (entitled entity) up to a certain financial amount depending on the contents and conditions of guarantee. The beneficiary may be the importer or importer's bank. The bank guarantee shall be issued by the bank based on exporter's (mandator's) request in view of the conditions of concluded export contract or announced tender. Most frequently, the banks issue guarantees for Czech exporter's bid (Bid Bond), for returning the advance payment by importer (Advance Payment Bond) and for the proper performance of export contract (Performance Bond). Also other types of guarantees may be issued in connection with conditions of acquiring or performing export contracts.

The bank is insured hereby against the risk of unauthorised and optionally also authorised drawing from the guarantee by the beneficiary, to the benefit of which the guarantee is issued

The insurance subject is the bank guarantee issued by the insured bank on behalf of mandator in connection with acquiring or performing credit contract.

The insured event is unauthorized drawing from the guarantee and authorized drawing if agreed so in the insurance policy. Unauthorized drawing is drawing without exporter's violation of its duties following from export contract or from tender conditions and also drawing due to territorial and other non-commercial reasons having the character of Force Majeure. Authorized drawing is drawing due to exporter´s failure to perform its obligations.

The premium amount depends on the value and term of insured guarantee, risk rating of exporter, evaluation of risk exposure of the country or territories associated with the export contract performance, tender conditions, kind of guarantee and deductible.

The preliminary premium calculation is available through interactive calculator.

Petr Martásek, Director of Pre-export, Investment and Bond Insurance Department
phone:+420 222 842 340
fax:+420 222 844 130

Eva Minaříková, Head of Sub-Department for Insurance of Pre-Export Credits and Guarantees
phone:+420 222 842 345
fax:+420 222 844 130

Michal Pravda, Head of Sub-Department for Insurance of Investments Abroad
phone:+420 222 842 348
fax:+420 222 844 130

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