Export Credit Insurance - Export Credit Insurance Export credit refers to the credit that the seller offers the buyer in the contract for sale of goods

Export Credit Insurance - Export Credit Insurance Export...

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Export Credit Insurance Export credit refers to the credit that the seller offers the buyer in the contract for sale of goods and services (ie a supplier credit) or credits given to finance such a sale (ie a buyer credit). Export credit insurance is normally divisble into commercial and political risks. The commercial risk is that which rests with the buyer, ie their ability to pay for what has been purchased. The political risk is that associated with the buyer's country and includes losses arising from such events as the cancellation of an import licence, war and the prevention by the authorities in the buyer's country of the transfer of the foreign exchange required to pay the seller. The private sector insurance market and the market for government-supported insurance. Risks not covered by export credit insurance Export credit insurance cover is limited by: 1. The percentage of coverage or the uninsured percentage that the seller is not allowed to
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