Insurance of Bank Guarantees (Counter-Guarantees) on Export Contracts

To provide insurance protection for commercial banks in performing bank guarantees, Eximgarant of Belarus offers an insurance product known as voluntary insurance of bank guarantees (counter-guarantees) under exports of goods (works, services).

The bank guarantee insurance provides the exporting bank with the absence of losses in case of performing a bank guarantee.

Procedure for collaboration:

1.     Conclusion of an export contract;

2.     Bank guarantee is issued by a domestic bank under the exporter’s obligations;

3.     Conclusion of an insurance policy;

4.     The exporter’s non-performance of their obligations under a contract;

5.     Execution of a bank guarantee;

6.     Payment of Insurance indemnity and transfer of the right of claim to Eximgarant of Belarus;

7.     Submitting a request against the exporter.

Documents required for the conclusion of an insurance policy:

·        Application for Insurance Policy;

·        The Insured’s title documents;

·        Exporter’s title and financial documents;

·        Documents in frameworks of the relations between the principal and the beneficiary, upon which the guarantee is based;

·        Documents confirming the principal’s collateral for their obligations to the Insured under a bank guarantee (counter-guarantee) issued;

   ·     Agreement for the issuance of a guarantee (counter-guarantee);

   ·     Bank guarantee (counter-guarantee) or its preliminary version thereof;

   ·     Other documents required to determine the risk level and decide whether to conclude an insurance policy.

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

   ·     Copy of an insurance policy;

   ·     Documents confirming the occurrence of an insurable event and the amount of loss incurred;

   ·     Documents related to the execution of an export contract or other contracts provided by bank guarantee (counter-guarantee) insured;

   ·     Documents confirming actions taken to reduce potential losses;

   ·     In case of bankruptcy - a copy of the ordinance initiating bankruptcy proceedings against the principal;

   ·     Other documents required to establish the occurrence of an insurable event and the amount of the Insured’s losses.

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.