Insurance of Letters of Credit (Including Discounting) Opened by Foreign Banks

Eximgarant of Belarus offers an insurance product aiming to protect the property interests of a bank confirming a letter of credit issued by a foreign issuing bank against the risk of non-performance of its obligations under a letter of credit, issued for the payment of goods (works, services) exported from the Republic of Belarus – insurance of letters of credit (including discounting) opened by foreign banks.

The letter of credit discounting enables the Development Bank of the Republic of Belarus to provide a beneficiary (exporter, non-resident organization) with funds before the payment under a letter of credit, on the matters of presenting documents for a proper presentation by a beneficiary to the Development Bank of the Republic of Belarus.

The Development Bank of the Republic of Belarus implements a letter of credit discounting by foreign banks for non-resident organizations’ financing of payments for goods included in the list and other goods (works, services) sold by residents of the Republic of Belarus, and financing non-resident organizations’ payments for goods included in the list and other goods (works, services) sold by non-resident organizations of the Republic of Belarus.

The discounting is provided in the amount of up to 100% of the export contract value.

Discounting rates:

Financing is carried out at rates in accordance with the Resolution of the Council of Ministers of the Republic of Belarus No. 495 dated September 11, 2025 "On Amendments to Resolutions of the Council of Ministers of the Republic of Belarus No. 262 dated May 5, 2021 and No. 58 dated January 24, 2023".

The insurance requires the waiting period (up to 90 calendar days) and the Insured’s participation in covering potential losses (unconditional deductible up to 10% of the loss amount).

Procedure of interaction:

1.      Conclusion of an export contract;

2.      Opening of a letter of credit;

3.      Delivery of goods;

4.      Documents for the shipped goods;

5.      Conclusion of an insurance policy;

6.      Domestic bank’s performance of its obligations under a letter of credit;

7.       Foreign issuing bank’s non-performance of its obligations under a letter of credit;

8.      Payment of insurance indemnity and transfer of the right of claim to Eximgarant of Belarus;

9.       Submitting a request against the issuing bank.

Documents required for the conclusion of an insurance policy:

•         Application for Insurance Policy;

•         The Insured’s title documents;

•         Issuing bank’s title and financial documents;

•         Export contract and letter of credit’s opening agreement, as well as the other documents.

Procedure for the Insured to follow upon the occurrence of an accident that may constitute an insurable event under the terms of insurance policy:

Following upon the occurrence of an insurable event, the Insured is obliged to notify the Insurer of an event deemed as an insurable event for 5 working days.

To receive insurance indemnity, the Insured is obliged to apply to the Insurer for an insurable event (not later than 30 calendar days upon the expiry of the waiting period established by insurance policy), enclosing the following documentation:

·         Original version of an insurance policy;

·        Documents proving the occurrence of an insurable event and the amount of losses;

·         Documents required by the terms of a letter of credit;

·         Documents confirming actions taken to avoid and/or reduce potential losses;

·         Issuing bank’s written explanation regarding the reasons for the non-performance of its obligations;

·         Judicial documents confirming bankruptcy proceedings initiated against the issuing bank, and a copy of judicial decision in case of the issuing bank’s bankruptcy;

 ·        Other documents on the Insurer’s request.

For inquiries regarding this line of business, contact the Export Credit Insurance Department or any Eximgarant of Belarus’s branch: Tel/Fax: +375 (17) 371-00-65.