EXIMBANKA SR provides further assistance for Slovak exporters who were adversely affected by the COVID-19 pandemic

After the beginning of the COVID-19 crisis, private insurance companies began to significantly reduce or cancel limits on foreign buyers. However, thanks to the implementation of the temporary exemption of the European Commission, EXIMBANKA SR can enable Slovak exporters to continue their export activities and assess their risk. The introduction of this exemption will have a positive effect on the availability of credit limits for insurance, as well as on the underwritten risk. EXIMBANKA SR's liabilities from such insurance will be covered by the state.

The sudden outbreak of COVID-19 virus disease is not only a serious global threat to public health, but also a major shock to the global and EU economies. Thus, businesses face serious lack of liquidity, and their trading conditions are exposed to greater financial risks. Due to the reduction and cancellation of the limits by commercial insurance companies, the insurance offer for Slovak exporters will not be sufficient. This situation may result in the restriction of Slovak producers in their further production or exports to traditionally marketable territories, such as the EU countries, Canada, the United Kingdom or the USA.

Thanks to the implementation of the exemption of the European Commission (Communication from the Commission 2020 / C 101 I / 01), which is currently valid until 31.12.2020, EXIMBANKA SR can now insure short-term export credits with a maturity of up to 2 years to these developed countries. Through the implementation of this exemption of the European Commission and sufficient free insurance capacity, EXIMBANKA SR is ready to supplement the services of commercial insurance companies. 

The product - "Insurance of short-term export supplier credits against commercial and political risks - AB" provides high protection for Slovak exporters and is intended for small, medium and large enterprises, regardless of the export volumes to various foreign buyers, covering both the commercial and political risks.

It allows you to:

• reduce the risks arising from the insolvency of your foreign buyer (bankruptcy, restructuring and other types of insolvency);
• reduce the risks of payment reluctance of your foreign buyer (eg. secondary insolvency);
• use receivables as a collateral in case of various forms of financing (overdraft facility, working capital, factoring, forfaiting);
• continue to provide the foreign buyers with deferred maturity of the receivable;
• coverage against political risks, e.g. force majeure - administrative measures of foreign governments caused by the COVID-19 pandemic.