Insurance of credit organization when financing a foreign counterparty
Insurance of a credit institution when financing a foreign counterparty is a tool that allows a Credit institution to have insurance coverage against the risk of non-payment by a foreign counterparty (Importer) for its obligations under a Credit agreement.
- KazakhExport provides insurance coverage for a Credit institution against the risk of default.
- The Credit institution provides the Importer with a loan to fulfill obligations (purchase of goods/works/services) under an export contract with Kazakhstan enterprise (Exporter).
- If the borrower (Importer) fails to fulfill its obligations to repay the principal debt under the Loan Agreement, KazakhExport compensates the losses of the Credit institution.