As part of the measures taken to deal with the coronavirus crisis the government has announced an expansion of export credit insurance. Its aim here is to support exporters in particular with the problems they are experiencing as a result of the crisis.
Export credit insurance
Export credit insurance is a guarantee given by the government to underwrite an export credit transaction. This insurance covers the export of capital goods and services. If you suffer a loss, because a buyer defaults on your invoice, you or your insurer can recover this loss from the government.
Relaxation of conditions
This expansion means, amongst other things, that export credit transactions with a term of less than two years can be covered, which was previously not the case. In addition, domestic cover is being expanded, the country policy is being made more flexible and cover can be obtained for a greater number of countries.
The expansion also means that higher levels of cover will be made available and that procedures will be accelerated. At present, for example, there is still a waiting period, usually three months, before payment is made to cover the loss incurred.