Working capital financing insurance is designed to protect a Russian bank from the risk of a default on a loan provided to a Russian exporter (a small or medium-sized enterprise) to fulfil an export contract. For SMEs, a lack of funds is one of the main barriers to engaging in foreign trade.
  • EXIAR is able to help resolve two key issues related to financing export projects:

  • Loan collateral
  • High interest rates on loans

Main product specifications

  • The insured

    Agency-accredited banks which provide loans to export-oriented companies

Listed banks which have been accredited under the working capital financing insurance programme for an exporter with a limit on their own project financing decision making
  • Insurance risks

    The risk of non-payment by the borrower (exporter) (due to the occurrence of commercial risks)

  • Main requirements for the export contract

  • Russian participation in exports must constitute at least 20%
  • Items for export: non-commodity goods
  • Country of overseas buyer: anywhere in the world

Main requirements for financing terms

BorrowerAn SME (as defined in Federal Law No. 209-FZ dated 24 July 2007) or other company with an annual trade turnover of up to RUB 2 billion
Intended use of credit resourcesTo provide working capital financing to execute an export contract (already signed or at the approval stage). Financing may be provided to execute several export contracts
Level of financingUp to 80% of the value of the export contract
Financing scheduleUp to two years
Source of credit
repayment
Accounts receivable under the export contract and profit from current operations
ControlAccounts receivable under the export contract must arrive at the bank (the insured), the transaction certificate for the export contract must be drawn up by the bank (the insured)

General insurance terms

Insured portion- 70% of the value of the loan and accrued interest, provided that the value of the loan does not exceed the financing limit for the exporter set on the bank.
- Up to 90% of the value of the loan and accrued interest, provided that the insured provides all the information required by the agency to conduct a full risk assessment
Universal insurance rate1.5% per annum of the insured loan debt
Insurance premiumPaid as a lump sum, or in accordance with the interest payment schedule
Waiting period60 days