Insurance against the unlawful claiming of guarantees issued in favor of the foreign buyer (ie registration guarantees, advance payment guarantees or performance guarantees).
Benefits of this product
- Such guarantees can often be claimed on first request without giving any reason
- The Belgian exporter is protected against risks that fall outside of his contractual obligations
- Contract guarantees are ancillary risks that are directly linked to the export contract
Most important features
- Contract guarantees issued by a Belgian exporter in favor of the foreign buyer as security for the correct execution, linked to the export contract
- Crediton – Export Credit Agency insures the improper claim of such guarantees by the foreign buyer, as well as the claim due to a political event
- Claiming for reasons of poor performance is not covered
In an export contract there are additional risks for Belgian exporters that can also be covered. This concerns the contract guarantees issued in favor of the foreign buyer and / or related beneficiaries, as security for the correct fulfillment of the contractual obligations.
Types of contract guarantees (bonds) with regard to export: registration guarantees, advance payment guarantees, implementation guarantees, withholding guarantees, maintenance guarantees.
In some cases, the beneficiaries of those guarantees can claim the union upon first request without giving a reason. Crediton – Export Credit Agency covers such guarantees for the unlawful claiming of the guarantee.
Cover for contract guarantees is generally provided under one joint policy together with the basic insurance for the export contract. A separate policy is drawn up for registration guarantees.
The premium percentage is calculated based on the country risk of the importing country and the duration of the union. The premium is payable when the policy is issued.
Crediton – Export Credit Agency offers a whole range of products with the same purpose: to control risks related to foreign buyers in foreign countries. The ECA’s products are specifically intended for capital goods, services and contracting works from Belgium. Not only Belgian exporters, but also banks can use the products. This can therefore also lead to different financing solutions for the exporter and / or the foreign buyer.
As an official export credit agency for Belgium, Crediton – Export Credit Agency follows the OECD Arrangement regarding the structure of export credits, as well as the rules on the applicable premium percentage.