EximBank continues to cover risks for Romanian exporters for another 6 months in EU and OCDE countries
Bucharest, December 08, 2020 – Romanian companies continue to benefit from the coverage of their commercial transactions with foreign partners as European Commission has authorized the extension of the insurance short term scheme for non-marketable and temporary non-marketable risks offered by EximBank in the name and on the account of the Romanian state up to June 30th, 2021.
This insurance product has been launched in the first part of this year due to the COVID-19 pandemic in order to support the business continuity for the Romanian exporters and maintaining the workplaces by covering the commercial and political risks associated to debtors from European Union and OCDE countries, valid until December 31st, 2020.
The facility targets all exporters – SMEs, medium and large for which EximBank may cover up to 85% of the losses incurred by commercial and political risks connected with commercial partners from the European Union and OCDE countries.
”Following the re-evaluation of the economic environment impacted by the COVID-19 pandemic, the European Commission has extended the validity of this insurance scheme thus creating the framework for EximBank to offer to Romanian exporters a high protection level in business dealings with foreign partners. It is an additional support measure that EximBank implements in this new economic local and global context, offering to Romanian companies a similar level of support as provided for European companies.”, said Traian Halalai, Executive President of EximBank.
Through this insurance scheme EximBank covers short term risks that small, medium and large companies face, regardless of the export turnover and the number of insured foreign debtors for a term up to two years (including manufacturing and reimbursement).
In order to benefit from this facility, exporters must have a favorable commercial experience and/or payment history (when the business relationship is not new) and the buyers must have a positive background in terms of indemnification, acceptable potential payments default and internal and/or external financial rating. The waiting period, namely the timing between the risks’ occurrence and the date when the exporters are entitled to demand indemnification is 90 days.
As Export Credit Agency (ECA) in Romania, EximBank has developed insurance products offered in the name and on the account of Romanian state that are protecting the cash-ins of the exporters against the risks associated with foreign partners or the export target country thus facilitating access to financing lines as the policies may be assigned to lending banks as part of the guarantee mix. The bank may cover risks on all international markets both in European Union and in the extra-community countries.