Insurance of Temporary Non-Market Risks

 

EximBank covers a maximum of 85% of the losses incurred by Romanian exporters as a result of commercial and political risks on the European Union and OECD markets. This facility is valid until March 31, 2022 and is classified as state aid, having been authorized by the European Commission.

Until March 31, 2022, EximBank can cover risks on short term for the small, medium and large companies, for any export volumes, number of foreign business partners for a total risk period (including production and reimbursement terms) up to two years. In order to access the facility, the exporters have to prove favorable commercial relationships or payment record (when the commercial relations already exist) and the buyers have a clean indemnification record, a reasonable likelihood of non-payment and an acceptable internal or external financial rating. The waiting period – the term between the risk occurrence and the date of indemnification request – is 90 days.

  • SMEs with an annual export turnover of less than EUR 2 million
  • exporters (SMEs and large companies) which make deliveries to a sole recipient, if the risk exposure period (manufacturing plus commercial credit) is longer than 181 days, but shorter than 2 years.
  • insurance period: up to 2 years
  • currency: RON or other currencies, depending on the currency used for the export contract

EximBank takes over the risks associated with export credits to EU and OECD member countries, if there is a lack of insurance on the market for the following situations:

  • deliveries made by SMEs with an annual export turnover of less than EUR 2 million, with payment deadlines of up to 2 years;
  • deliveries made to a sole recipient, if the risk exposure period (manufacturing plus commercial credit) is longer than 181 days, but shorter than 2 years.

Covered risks

  • Commercial risks:
    • arbitrary cancellation of a contract by a private debtor, or any arbitrary decision to cease or suspend the contract;
    • insolvency of the private debtor and their guarantor;
    • long-standing debts unpaid by a private debtor or their guarantor;
  • Political risks:
    • default of payment risk for a public debtor;
    • risk associated with the possibility of a public debtor or country to block an export transaction;
    • risks beyond the will/power of individual buyers or for which individual buyers are not responsible;
    • risks related to a certain country not allowing that the amounts payable by debtors in that country be transferred to the insured party’s country
    • force majeure outside of the insured party’s country, which includes but is not limited to war, unless covered by other types of insurance.

Costs

Debtor’s Risk Category Total Annual Premium
Excellent 0.51% – 1.299%
Good 0.825% – 2.049%
Satisfactory 1.575% – 4.149%
Poor 3.675% – 7.449%

 

  • no guarantees are required in order for an insurance policy to be issued
  • the policy may be used as a collateral, to provide funding for exports

 


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