Medium and Long-term Export Credit Insurance (Supplier Credit)
Overview of Scheme and Product Characteristics
This 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.
