1. What does State support for insurance mean?
EXIMBANKA SR can insure also those risks which will not be insured by any other commercial insurance company. It is not possible to reinsure these risks on the international reinsurance market and the accepted risk is not sellable on the commercial market. In terms of Act No. 80/1997, Coll. on the Export-Import Bank of the Slovak Republic as later amended; EXIMBANKA SR can insure this type of risk because the State guarantees the obligations of EXIMBANKA SR incurred by insurance of export credits.
2. What volume is the subject of medium and long-term project insurance where the payment condition is longer than 2 years?
The subject of insurance is 85% of the export contract value including credit interests.
3. What is a basic condition for insurance of medium and long-term projects?
The share of goods and services of Slovak origin must be greater than 50% of the total export value.
4. What is the insurance premium rate for medium and long-term projects insurance?
The insurance premium rate depends on the length of contract realisation (half of the length), length of payment condition and classification of the foreign debtor’s country into a risk category. EXIMBANKA SR distinguishes seven risk categories. These depend on, and are determined also according to the type of the foreign debtor ownership – whether it is a sovereign debtor, i.e. government, public subject or a private company.
5. Is it possible to insure the export of machinery that had been bought abroad and then repaired in Slovakia by medium and long-term projects?
Yes, in cases where the exporter proves more than a half share of Slovak added value on the total delivery value including services.
6. In case of short-term insurance, i.e. where there is a deferred payment up to one year, is it necessary to also insure for political risk in addition to commercial risk?
Yes, in cases where the country of a foreign buyer is classified into groups 4 – 7 according to the level of territory risk (these represent a risk from average up to the highest level).
7. What are the possibilities offered by EXIMBANKA for supporting exporters belonging to the group of small and medium enterprises?
The department for small and medium enterprises provides two basic types of products. The first group of products is represented by bill-of-exchange loans focused on direct export financing or so called pre-export financing, or financing of technology purchases. Bank guarantees represent the second group of products. EXIMBANKA SR provides payment and non-payment guarantees. It can be guarantor for a loan on export financing or on technology purchases which can be provided to an exporter in all commercial banks in the Slovak Republic. EXIMBANKA SR can provide guarantees of up to 80% of the unpaid credit principal or can provide a guarantee in connection with a foreign contract up to 100%.
8. Which conditions have to be fulfilled by an exporter in order to obtain any of the products offered?
The exporter should run business activities in a given area for at least a one year period; it should not have unpaid liabilities after the maturity date against the State and it may not show trends for bankruptcy or a worsening of its financial situation.
9. What is the current interest rate by direct financing by EXIMBANKA?
The interest rate is determined depending on the currency of the support provided to an exporter. If the support is provided in Slovak crowns, the maximum possible level is 4.8% p.a. (basic interest rate of EXIMBANKA SR + risk margin at the maximum level of 3% p.a.). By financing in a foreign currency the interest rate consists of the EXIMBANKA’s costs for procurement of financial funds in the foreign currency and a risk margin at the maximum level of 3% p.a.
These rates can be decreased depending on the security of the individual business case.