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Foreign direct investments in developing and emerging countries are particularly subject to political insecurity. Very often the legal framework in such countries is not sufficiently developed and stable, so that sudden changes or arbitrary acts by the authorities could seriously jeopardize an investment.
Though every investor is responsible for arrangements to limit the financial and commercial risks of an investment abroad, the political risks in host countries are beyond his sphere of influence. This is where the guarantee scheme of the German government can provide valuable assistance.
Under the following headings you may find answers to
- why coverage is reasonable, who may apply and for which periods can cover be granted - application
- what are the requirements for coverage - requirements
- which investments are eligible for coverage - eligible investments
- which risks are covered - covered risks
- what are the costs - fees and premiums
- what happens in the event of loss - event of loss.
