Export Insurance and Risk Mitigation
The U.S. Government offers U.S. companies insurance
for both export transactions (Ex-Im Bank) and for
overseas investments (OPIC). Coverage includes losses
for non-payment, currency inconvertability, asset
expropriation and political violence.
Ex-Im Bank’s export credit insurance enables
U.S. exporters to both finance their export activities
and mitigate the risk of non-payment. The policies
below enable you to offer credit to your international
buyers and access working capital funds.
Benefits:
- Risk Mitigation Tool - Reduces nonpayment
risk
- Marketing Tool - Enables you to extend
competitive credit terms to buyers
- Financing Aid - Increases cash flow. Helps
you export to new markets with more confidence.
Ex-Im export credit insurance is offered in multiple
policy forms:
Designed specifically for small, financially viable
businesses that are new to exporting, or have only
occasionally exported. It can help increase an exporter's
international sales by extending competitive credit
terms while minimizing risks.
Policy enables U.S. exporters to reduce their risk
of selling on credit terms by insuring their export
accounts receivable against default or non-payment.
The policy can help increase international sales
by extending competitive credit terms to foreign
buyers while minimizing risks.
Allow exporters to insure specific, short-term
foreign receivables against loss due to commercial
and specified political risks on a selective basis.
Offers U.S. leasers the opportunity to expand their
overseas leasing programs by providing comprehensive
insurance for both the stream of lease payments
and the fair market value of the leased products.
Policies for Commercial Lending Institutions
The Bank Letter of Credit Policy insures commercial
banks against loss on irrevocable letters of credit
issued by foreign banks for U.S. exporters.
Insures individual short-term export credits extended
by financial institutions to foreign buyers.
Protects lenders financing (to include purchasing)
the export receivables of small businesses on a
non-recourse basis. The policy is available in documentary
and non-documentary formats. There is no "whole
turnover" requirement under the policy. The
policyholder selects the exporters for approval
under the policy.
For more information, Contact: Ex-Im Bank at (202)
565-3900; fax (202) 565-3931; your local
regional office, or the Ex-Im
"Products & Policies" section of
their website.
The Overseas Private Investment Corporation (OPIC)
offers several programs to insure U.S. investments
in emerging markets and developing countries against
the risk of:
currency inconvertibility - the inability
to convert profits, debt service, and other investment
remittances from local currency into U.S. dollars
or the inability to transfer funds;
expropriation - loss of an investment due
to expropriation, nationalization, or confiscation
by a foreign government; and
political violence - loss of assets or
income due to war, revolution, insurrection, or
civil strife. Coverage is available for new investments,
privatizations, and investments to expand or modernize
existing operations. Equity, debt, loan guarantees,
leases, and most other forms of long-term investment
can be insured. Special programs or contracts
are also available for contractors, exporters,
oil and gas projects, and small businesses.
Contact: Information Line, (202) 336-8799; fax
(202) 408-5155
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