Exporter’s credit insurance
Under the scheme “Exporter’s credit insurance”, «KazakhExport» Export insurance company» joint-stock company provides Kazakh Exporter the protection against the risk of loss associated with default on financial obligations by the Foreign counterparty (Importer) under the export contract for sales of goods, works and services on the deferred payment terms.
Insurance procedure
- Exporter and importer conclude an export contract with deferred payment terms
- The exporter submits an insurance application to «KazakhExport»
- «KazakhExport» considers an application and concludes an insurance contract with the exporter
- The exporter delivers goods and pays the insurance premium
- If the importer does not pay for the goods received, «KazakhExport» compensates losses to the exporter
Benefits for Kazakhstan exporters
- Competitive advantage in foreign markets, which consists in the possibility of granting a deferred payment under an export contract;
- Protection from political risks;
- Minimization of losses in case of non-fulfillment of financial obligations by the Importer;
- Increasing the volume and expanding the geography of exports due to favorable conditions for foreign partners.
Commercial risks
- Bankruptcy of the Importer;
- Non-performance by the Importer of financial obligations under the contract.
Political risks
- The action of the state body of the country of transit, or the country of destination for the supply of Kazakhstani goods of work, services, or the country of the Importer to expropriate, confiscate, restrict ownership of goods, works, services, the result of the work performed, owned by the exporter;
- Unforeseen action by the state body of the country of destination for the supply of Kazakhstani goods, work, services, restricting or prohibiting the supply of this product, performance of work, provision of services;
- War, civil unrest, disorder of a mass nature outside the Republic of Kazakhstan, preventing the fulfillment of obligations under the insured Contract;
- An unanticipated action by a government authority in the Importer's country that restricts or prohibits conversion into a freely convertible currency and/or payment transfer.
Share of insurance coverage
- For political risks - up to 80% of the amount of losses incurred.
- For commercial risks - up to 80% of the amount of losses incurred.
Insurance rate
- Determined based on country risk assessment and analysis results for the Importer's Bank (Issuing Bank).
