BUYER/BUYER’S BANK CREDIT INSURANCE

The Insurance of Buyer/Buyer’s Bank Credit enables the commercial bank to insure the collection of receivables against commercial and political risks arising from the loan contract concluded with the foreign buyer/foreign bank. Loan is extended for the purpose of financing of export of goods and services in the manner that disbursement out of the loan funds is made directly to the exporter’s account, and the loan is repaid by the buyer or its bank abroad.

 

The usual cover ranges between 80% and 95% of the loan amount, depending primarly on the buyer’s country exposure.

 

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  1. Conclusion of the insurance contract and payment of premium.
  2. Advance payment based on the export contract.
  3. Delivery of goods or rendering of services.
  4. Disbursement of loan proceeds.
  5. Loan repayment.
  6. Payment of indemnity if the buyer/buyer’s bank fails to meet its obligations.