Bank payment guarantees insurance

Documents for application

This tool protects banks and exporters against the risk of default by a foreign bank on guarantees issued under export contracts

Stepwise description of the procedure for the scheme “Insurance of bank payment guarantees”

The exporter and the foreign buyer enter into a contract for the supply of goods/services
The foreign buyer applies to his bank to issue the guarantee
The foreign buyer's bank issues the guarantee in favour of the exporter
The exporter concludes with KazakhExport an insurance contract for the guarantee
If the foreign buyer breaches the terms of the export contract, the exporter issues a claim to the foreign buyer's bank
If the foreign buyer's bank fails to honour the payment terms, KazakhExport compensates the exporter's losses

Participants of the insurance contract

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.