Insurance of the Risk of Non-Repayment of Export Credit to Residents

Eximgarant of Belarus offers an insurance product aiming to ensure the exporting enterprise’s performance of its obligations under a credit contract.

Eximgarant of Belarus covers commercial resident banks’ losses in case of a borrower’s non-performance of its obligations in amounts and terms, specified by a credit contract due to insolvency or bankruptcy. The sum insured includes principal (its part) or sum regarding the interests for the credit use.

A mandatory condition for insurance is the availability of other export credit contracts on behalf of the government by a borrower, as well as the waiting period (up to 180 calendar days) established and the Insured’s participation in covering potential losses (unconditional deductible up to 40% of the loss amount).

Procedure of interaction:

1.      Conclusion of an export contract;

2.      Conclusion of а credit contract;

3.      Conclusion of an insurance policy;

4.      Delivery of goods according to the terms of an export contract;

5.      Foreign buyer’s payment for the delivered products;

6.      Resident’s default on a credit;

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

8.      Submitting a request against the resident.

 Documents required for the conclusion of an insurance policy:

·        Application for Insurance Policy;

·        The Insured’s title documents;

·        Credit contract;

·        Borrower’s title and financial documents;

·        Contracts concluded to ensure the performance of obligations under a credit.

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 inform the Insurer of an event that may constitute an insurable event for 3 days.

To receive insurance indemnity, the Insured is obliged to apply to the Insurer for an insurable event, enclosing the following documents upon the expiry of the waiting period established by an insurance policy:

1.      Original version of an insurance policy;

2.      Documents confirming the fact and amount of losses;

3.      Documents confirming actions taken to prevent and/or reduce potential losses;

4.      Borrower’s written explanation on the reasons for default on a credit;

5.      Copy of judicial decision in case of borrower’s bankruptcy;

6.      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.