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Insuring export business as bank

Buyer Credit Cover

Product at a glance

Buyer credit cover enables banks to insure their receivables arising from the financing of a German export transaction.

Target group

  • German banks
  • Branch offices of foreign banks in Germany
  • Foreign banks (under certain conditions)

Payment terms of the covered transactions

  • Short-term (up to 2 years)
  • Medium/long-term (2 years and longer)

Insurable risks

A Buyer Credit Guarantee offers protection against payment default, particularly if

  • the borrower becomes insolvent
  • the borrower fails to make payment within one month after due date (protracted default)
  • adverse measures are taken by foreign governments or warlike events arise
  • local currency amounts are not converted or transferred

Special features

Without having to pay additional premium the exporter can take out a Supplier Credit Guarantee to cover the risk of non-payment under the buyer credit.

Limited in time until the end of 2011, cover for Bulgaria, Iceland, Latvia, Lithuania and Romania, in principle classified as marketable risks, is possible. Further information (German version only).

In order to facilitate refinancing through the capital market an additional Securitisation Guarantee can be taken out. Alternatively, a Buyer Credit Guarantee can be supplemented with a Securitisation Guarantee for the KfW Refinancing Programmein order to generate liquidity by refinancing receivables covered by a state export credit guarantee with KfW.

Premium

  • Single premium calculated as a percentage of the order value covered (interest excluded) as well as specific processing fees
  • For a detailed calculation there is an interactive premium calculator available (German version only).

Uninsured portion

5 % for all risks

Supplementary cover

If required, cover under a Buyer Credit Guarantee can be supplemented with

For advice please contact

Downloads

General Conditions: Buyer Credit Guarantees (German version only; 267 KB)

Supplementary provisions (186 KB) relating to the assignment of Guaranteed Amounts
amend Art. 19 and 20 of the General Conditions (ECG/BCG/P/PL) as well as Art. 17 of the General Conditions (FG)

Product information Buyer Credit Cover (216 KB)

Application for a Buyer Credit Guarantee (German version only) (215 KB)
Application for a Buyer Credit Guarantee (German version only) (269 KB)

Letter of Undertaking to the Application for Buyer Credit Cover (42 KB)
Letter of Undertaking to the Application for Buyer Credit Cover (196 KB)

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