Medium and Long-term Export Credit Insurance (Supplier Credit)
Overview of Scheme and Product CharacteristicsThis scheme is used to compensate for losses generated when an exporter enters into a Medium and long-term export contract of which the settlement period exceeds two years and executes the export, but the importer fails to pay the export proceeds due to the risks covered.
- Export of capital goods, such as industrial facilities, ships, and plants, generally involves a large contract amount and long repayment period. In addition, most importing countries are developing countries that are politically and economically unstable. Therefore, the risk of non-collection of export proceeds always remains.
- Medium and long-term export credit insurance (supplier credit) is a scheme to cover exporters against the nonpayment risk of export proceeds due to political and commercial risks of the importing countries for the export of capital goods, etc., on a medium and long-term deferred payment basis with the repayment period exceeding two years.
Target TransactionsExport contract of which the settlement period of export proceeds (base date of credit - final payment due date) exceeds two years
- Point of Contact : Project Finance Coordination Department