About Export Credit Guarantees
Export support | Covid19
Restrictions on receiving export guarantees to the EU and certain OECD member states have been lifted by 31.12.2020. Now large companies can also apply for export guarantees to developed countries, regardless of the export turnover and the country to which transactions are planned, without imposing additional restrictions.
- An export credit guarantee enables exporters to secure themselves against the insolvency of a foreign customer or long-term nonpayment when selling goods or providing services with a deferred payment.
An export credit guarantee covers commercial (buyer’s risks), as well as political risks.
An export credit guarantee provides up to 90% risk coverage concerning commercial risk and up to 95% risk coverage concerning political risk, of the total sum of an export transaction.
The maximum period of a deferred payment of a transaction covered with export credit guarantee can be up to 730 days (2 years).
The maximum amount of an export credit guarantee or the maximum amount of ALTUM obligations for losses that have incurred due to non payment by one foreign customer is EUR 2 million.
An export credit guarantee may cover both the buyer’s risk and the risk of the guarantor of the buyer’s obligations – bank or buyer’s associated company if having certain doubt about the liquidity of the buyer’s obligator.
The objective of an export credit guarantee is to cover the risks of export deals or to serve as a collateral for the receipt of financing necessary for export deals, for instance, factoring.
An export credit guarantee enables exporters to secure themselves against the insolvency of a foreign customer or non-payment risks
Use State support for exporters – export credit guarantee:
The guarantee covers buyer’s and political risks
Covers the risk of the guarantor of the buyer’s obligations – bank or buyer’s
associated company
Serves as additional security for guarantees or a letter of credit issued by
the buyer’s bank if there are doubts about the bank’s liquidity
Serves as a collateral in factoring or for obligations to a bank to secure
financing for other current assets