Under the conditions of modern foreign trade business operations domestic legal entities and entrepreneurs are exposed to numerous risks in the course of its export business performance.
One of necessary requirements for increasing the competitiveness of goods and services sale to foreign buyers is also the financing i.e. sale of goods and services with deferred payment term, which represents major risk in case of company liquidation or untimely payment of the buyer.
The certainty of export business receivables collection is a prerequisite for normal business and planning i.e. for a successful increase in the number of buyers.
Through its export business – export credit insurance service against commercial risks, the AOFI ensures coverage of the said risks.
Short-term export credit insurance against commercial risk:
This insurance scope involves short-term pecuniary receivables of insurance holders resulting from delivered goods or rendered services to debtors, which have been created and reported for the insurance within the insurance contract validity period and for which the insurance holder has issued invoices to the debtors with deferred payment term up to 180 days.
Commercial risks covered by these insurance products are debtor’s insolvency risk (bankruptcy etc.) and prolonged non-payment debt risk.
Short-term export credit insurance against non-commercial risk:
The AOFI shall pay indemnity in the event the following non-commercial risks take place:
- Non-payment of debt within six months from the contracted due date, if the debtor is a government, a government institution or a person for which a government or a government institution has provided guarantees;
- Political events in the debtor’s country or a state of war in the country of debtor’s nationality with another country;
- General payment moratorium, impossibility of conversion of the debtor’s currency into convertible currencies or transfer ban, until the expiry of such bans;
- Ban on import of goods or services by the government or a government institution as a buyer or a service recipient;
- Unilateral contract termination by the government or a government institution as a buyer or a service recipient, save when such unilateral termination resulted due to a breach of customs or sanitary regulations of the importer’s country i.e. the service recipient’s country;
- Seizure, damage, disposal prohibition or destruction of goods carried out by the government or its institutions, from the moment the goods crossed the state border until their arrival to the foreign debtor and
