This product is intended to protect Russian exporters (as well as banks financing them) from the risk of non-payment by the foreign buyer.
Policies cover single deliveries of goods made on credit terms.
What is insured?
The confirmed documentary letter of credit (including with financing) supplied to make a payment under an export contract
Who is the insured?
The insured is the Russian or foreign bank that adds its confirmation to a letter of credit issued by an overseas bank (often the buyer’s bank)
What is the term of an insurance contract?
The insurance period corresponds to the term prescribed for the issuing bank to fulfil its obligations to the confirming bank
Degree of insurance coverage
Insurance covers both commercial and political risks related to non-fulfilment of the overseas issuing bank’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 export contract (or draft version)
- A draft loan agreement
- Information on the Russian bank, including financial records (balance, profit and loss account), ownership structure, information on the group of companies that the counterparty is a member of, and the group’s consolidated management accounts (if applicable)