Holicent
VIP Contributor
Export credit insurance is a type of contract where the buyer (typically a foreign government) pays a premium to cover the cost of any delays or costs that might arise in the event of an emergency. The seller (typically a bank) is then reimbursed by the insurer if such delays or costs do occur.
Export credit insurance can be used in a variety of situations, such as when buying goods from suppliers in another country. For example, suppose that a company wants to buy equipment from China and have it delivered to its plant in Moscow. The transaction would normally be financed by banks through normal lending arrangements, but there is no guarantee that the equipment will arrive on time or at all. In that case, export credit insurance could be purchased from an insurer who would assume liability for any delays or other setbacks that might occur during shipping or transport.
Export credit insurance is available for most types of transactions: purchase orders, lease agreements, bonds and loans.
Export credit insurance can be used in a variety of situations, such as when buying goods from suppliers in another country. For example, suppose that a company wants to buy equipment from China and have it delivered to its plant in Moscow. The transaction would normally be financed by banks through normal lending arrangements, but there is no guarantee that the equipment will arrive on time or at all. In that case, export credit insurance could be purchased from an insurer who would assume liability for any delays or other setbacks that might occur during shipping or transport.
Export credit insurance is available for most types of transactions: purchase orders, lease agreements, bonds and loans.
