Bank payment guarantees insurance | Export insurance company «KazakhExport»

Bank payment guarantees insurance

"Insurance of bank payment guarantees”, such as tender guarantees, advance payment guarantees and guarantees of performance, accelerates the process of making decisions by the banks on issuing guarantees for exporters for obligations to supply products and services. It does not “freeze” the assets of the enterprise, and even ensures the release of a line of credit for other production purposes. 

Stepwise description of the procedure for the scheme “Insurance of bank payment guarantees”
  • The Exporter and the Importer enter into a contract;
  • The Exporter submits an application to the Bank to issue a guarantee;
  • The Bank submits an application to «KazakhExport» Export insurance company» joint-stock company to insure the guarantee;
  • The Bank, the Exporter and KazakhExport conclude a trilateral insurance contract;
  • The Bank issues the guarantee covered by the insurance for the Exporter to the Importer.
  • Coverage share: up to 95% of the amount of the guarantee;
  • Base insurance rate varies depending on the category of the country risk and the guarantee term;
  • Supply of Kazakhstani goods, works, and services for export;
  • Waiting period: 30 calendar days;
  • Insurance payment shall be made on demand by the bank.

Participants of the insurance contract
  • Insurer: KazakhExport
  • Insurant: borrower
  • Beneficiary: creditor
Franchise

10%

Sum insured

corresponds to the loan amount

Benefits of the product for Kazakhstani exporting companies
  • The company's funds are not "frozen" and even the release of a credit line for other production purposes is ensured;
  • The Exporter gets the opportunity to confirm to the foreign partner the full fulfillment of obligations under the foreign economic contract;
  • Increasing the competitiveness of Kazakhstan exporting enterprises participating in tenders and competitions held by foreign customers.
Benefits of the product for Kazakhstan banks
  • Insurance up to 95% of risks of default by the Exporter;
  • Speeding up the decision-making process on issuing guarantees for exporters on obligations to supply products and services;
  • The expansion of the customer base.
Product Benefits for Foreign Importing Companies
  • Guaranteeing the full fulfillment by the Exporter of obligations under the contract;
  • Access to quality Kazakhstani goods and services.
Share of coverage

up to 95% of the guarantee amount

Insurance rate

The basic insurance rate varies depending on the category of country risk and the duration of the guarantee;

Insurance conditions
  • Insurance is provided under export contracts for the supply of non-commodity goods/services of Kazakhstan origin;
  • Waiting period: 30 calendar days;
  • Insurance payment is made at the first request of the bank.

Documents for application