RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Export Credit Guarantee - Supplier Credit Cover
Link to Product Website
Provider Name Euler Hermes - Germany
Product Definition Supplier Credit Cover safeguards amounts receivable due to a German exporter under a single export transaction with short or medium/long repayment terms.

It offers protection against payment default due to the insolvency of the foreign buyer, ad-verse measures taken by foreign governments or warlike events, non-conversion/transfer of local currency amounts, confiscation of the goods due to political circumstances or contract frustration due to political circumstances, as well as non-payment within six months after due date (protracted default).

Product Type Export Credit
Defined Risks Covered Political Risks: Expropriation
Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
Commercial Risks: Counter-Party Performance
More on Risks Covered
Eligible Form of Investments Bank Loans
Non-Bank Loans
Shareholder Loans
More on Eligible Investments
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions All
More on Eligible Countries
Eligible Applicants PRIVATE: Companies headquartered in Risk Mitigation Provider Home Country
PRIVATE: Minimum Product or Service Content Requirement from Risk Mitigation Provider Home Country
Eligible Sector n.a.
Maximum Tenor 0 to 5 years
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered Max./under 25%
Max. % of Export Content Covered Max./under 50%
Fees Market-based
The insured pays premium and administrative fees for his export credit cover.

Administrative fees depend on the order value. When an application is made, an application fee is charged. For each prolongation of the offer of cover beyond one year, a prolongation fee must be paid. There is in addition an issuing fee on issuance of the cover policy. No insurance tax is payable.

The premium rate depends primarily on the country risk category into which the country of the buyer/guarantor is categorized. Category 0 means a very low risk and thus the lowest premium rate, while Category 7 signifies the highest risk and the highest premium.

The premium is further influenced by the order value, the repayment term, the buyer's status - public or private, with or without a bank guarantee - and, depending on the case, also by the level of the uninsured percentage (percentage of cover). In case of a private buyer/guarantor (e.g. bank) its credit standing also influences the premium amount (buyer/bank category).
More on Fees
More on Country Classification

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Others: Recommendation on Common Approaches on Environment and Officially Supported Export Credits
Source(s) n.a.
For more information, contact n.a.
Attachments Tajikistan - Pamir Case Study - WB (Markandya, Sharma) (2004).pdf
Tajikistan - Pamir PAD - WB (2002).pdf
Tajikistan - Pamir Energy Financial Structure - (na).ppt
Additional Links www.agaportal.de/en/aga/grundzuege/projektinformation.html
Deals n.a.

Provider Name Euler Hermes - Germany
Institution Type PUBLIC: Multilateral Development Bank
Ownership n.a.
Head Office Euler Hermes Kreditversicherungs-AG Public Relations Export Credit Guarantees Friedensallee 254 22763 Hamburg
Provider Home Country Germany
Rating n.a.
Main Risk Mitigation Products Export Credit Guarantee - Supplier Credit Cover (AGA/EulerHermes)
Attachments n.a.
Additional Links
Entered On: 01/23/2008 at 02:35 PM
Updated On: 02/10/2012 at 12:36 PM