EximBank continues to insure for five more years the Romanian exports in EU and OECD states
EximBank will continue to issue insurance policies in the name of and on account of the Romanian State until 2021 for Romanian companies that are confronted with commercial and political risks on markets from EU and OECD and are not covered by the private insurers.
As a facility qualifying as State Aid, the launching of the new scheme was submitted for approval to the European Commission that has recently authorized the prolongation of the insurance scheme for temporary non-market risks up to December 31, 2021. Initially, the facility had the validity term up to December 31, 2016.
”Considering the fact that the standard offer of the private insurers do not cover completely the needs for insurance of the Romanian exporting SMEs, especially those of the very small ones, EximBank has performed the due diligence for prolonging the validity of this State Aid scheme in order to offer to the local entrepreneurs an additional instrument for keeping the comfortable conditions for their transactions with foreign partners. Starting this year, we have increased the flexibility of the short term insurance conditions and we are now able to cover the commercial and political risks conjointly or separately which we hope that will permit supporting as many local companies as possible, having in mind also the scheme budget which amounts at a total of almost 8 Million Euro.”, said Traian Halalai, Executive President of EximBank.
This insurance policy is targeted to SMEs having an annual export turnover lower than 2 Million Euro and to exporters such as SMEs and big companies that are delivering to a single buyer, with a risk horizon (production and delivery period) longer than 181 days.
EximBank is covering 85% of the losses incurred by the political and commercial risks for transactions with a total risk horizon reaching a maximum of 2 years. The bank has a standard market risk coverage, namely solely the risks that are economically justified and is not accepting the coverage for buyers that have payment delays.
As Romanian Export Credit Agency (ECA), EximBank has developed a portfolio of insurance products offered in the name of and on the account of the Romanian State that are protecting the exporters against risks associated to foreign partners or target countries and are also facilitating the access to financing because they may be included in the guarantees mix:
– Insurance policy for short term export credits for non-market and temporary market risks;
– Insurance policy for medium and long term export credits;
– Insurance policy of Romanian capital investments abroad;
– Insurance policy for buyer credit.
The bank may cover risks of Romanian exporters on all international markets, both inside European Union and from outside the community territories: Europe non-EU (Moldavia, Serbia, Montenegro, Bosnia-Herzegovina, Turkey), Middle East, Asia, Africa, Latin and Central America.