Starting this month EximBank is offering a new product – the insurance for export guarantees – aiming at facilitating the Romanian companies’ operational expansion abroad, especially SMEs, by the State taking over the risks of unduly execution of the guarantees issued for taking part in international biddings and for completion of export contracts.
”(…) Insurance of export guarantees is a last resort instrument, not available on the private insurance market and this is why our product represents an official instrument for supporting export activity”, Traian Halalai, President of EximBank said in a press release.
The new EximBank product under the state name and account is granted to exporters that have requested issuing guarantees for participating in biddings processes abroad or for completion of export contracts.
The insurance covers maximum 95 percent of the banking guarantees letters, level of banking guarantees or the guarantees issued by other institutions meant to support the export transactions and the internationalization of Romanian companies, either directly in favor of the debtor or indirectly by financial institutions in the debtor’s country or third countries.
Among the insured risks there is the unduly execution of the export guarantees by the commercial partner, in case of full completion of the insured obligations during bidding and/or commercial obligations or the risk of export guarantees execution incurred by the exporter’s lack of capacity in fulfilling its contractual obligations due to political risks in the debtor’s country or in a third country.
EximBank has developed an offer of insurance products for exporters that cover the commercial and political risks that may incur during international commercial transactions or implementation of Romanian investments projects abroad.