EximBank is coming to support the Romanian exporters during the COVID-19 pandemic and launches a new short term insurance product in the name and the account of the Romanian state that allows business continuity and maintenance of workplaces by covering the commercial and political risks related to transactions with partners from European Union and OECD countries.
”The new facility is available for all exporters– small, medium and large companies – that will be covered for 85% of the losses incurred due to commercial and political risks under transactions with commercial partners from European Union and OECD countries. It is an additional support instrument that EximBank implements in the new local and global economic conditions, aiming at offering high protection for Romanian exporters involve din international transactions”, said Traian Halalai, Executive President of EximBank.
The new insurance scheme valid until December 31st 2020, 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.
As a state aid facility, the scheme should have been pre-approved by the European Commission but due to the European efforts to mitigate the negative economic impact of COVID-19 pandemic, the European authority decided to consider all commercial and political risks associated with exports in the European Union and OECD countries as being off cover for the private market up to December 31st 2020.
The exporters may benefit from the facility immediately and do not have to present the proofs that private insurers of export credits have refused underwriting the risks associated with the adjacent operation.
As Romanian Export Credit Agency (ECA) EximBank has developed insurance products offered in the name and on the account of the state that protect the exporters’ cash-ins from the risks associated to the foreign commercial partners and the export target countries and facilitate access to financing products because they can be assigned to financing banks in completion of the guarantees mix.