If you are, as an exporter, confronted with the need for guarantees issued in favour of your foreign buyers as a condition for entering into or performing export contracts, and if you are at the same time not able to offer usual or sufficient collateral to your bank required for the issuing of a guarantee, you can enter into a contract with HBOR providing insurance of guarantees.
All commercial banks in the Republic of Croatia and Hrvatska banka za obnovu i razvitak can be beneficiaries of insurance policies provided that they have experience in the guarantee business.
What are the advantages of an insurance policy?
- Insurance covers the risk of the so-called unfair calling under the guarantee, i.e. collection of payment by the beneficiary under the guarantee despite due fulfilment of obligations on the part of the exporter under the export contract or tender and collection of payment due to exporter’s non-fulfilment of obligations owing to a political risk in the beneficiary’s country or the third country;
- Insurance covers the risk of the so-called fair calling under the guarantee, i.e. collection of payment by the beneficiary under the guarantee owing to exporter’s non-fulfilment of obligations under the export contract or tender due to exclusive responsibility of the exporter or exporter’s bankruptcy or liquidation;
- Depending on the exporter’s rating, the level of coverage for the risk of unfair calling ranges from 50% to 90% and the level of coverage for the risk of fair calling ranges from 50% to 80%.
For more detailed information, please contact us at:
HBOR, Export Credit Insurance,
Zelinska 3, 10000 Zagreb
Phone: +385 1 4591 539; Fax: +385 1 4591 547; e-mail: email@example.com