This insurance product is designed to protect Russian companies (as well as banks providing financing) from the risk of non-payment by overseas buyers. Policies cover recurrent shipments of similar goods to customers based abroad, in which payment has been deferred by up to 360 days.
What is insured?
The entire portfolio of the insured’s export contracts with deferred payment
Who is the insured/loss payee?
The policy holder is the supplier or manufacturer of the goods, work or services. The loss payee may be the bank financing the insured.
What is the term of an insurance contract?
The period of insurance is one year.
Degree of insurance coverage
Insurance covers both commercial and political risks related to non-fulfilment of the foreign buyer’s obligations.
- Provides the opportunity for exporters to benefit from end-to-end services (pre- and post-shipment lending, foreign trade finance operations etc.)
- Provides the opportunity to offer competitive financing terms for export projects (both in terms of costs and time frames) in relation to terms offered by international banks
- Insurance contracts offered by EXIAR qualify as first-class security (Directive No. 254-P of the Central Bank of the Russian Federation dated 3 December 2012, “On the introduction of amendments to Provision No. 254-P of the Bank of the Russian Federation dated 26 March 2004, ‘On the establishment of reserve funds to compensate potential losses on debts and loans and equivalent debts by lending agencies’”)
- Provides the opportunity to finance export projects being implemented in higher-risk regions/countries
The review procedure for export projects consists of 7 stages and takes between 12 and 29 days.
Documentation required to review a project:
- An insurance application/request
- Information on prior transactions with the buyers
- Information on the overseas buyers, including financial records (balance, profit and loss account)