Export Credit Insurance (ECI)
Export credit insurance is an insurance instrument that covers foreign buyer risk (the risk of non-payment) in relation to deliveries of goods and services to another country.
Based on duration, we can differentiate between:
- short-term insurance, which is a framework-type insurance facility designed for recurring export transactions of relatively small volume, typically involving fast-moving and other consumer goods, and often serves to insure the trade payables of several buyers at a time;
- medium and long-term insurance, which is a policy for the one-off insurance of typically medium or long-term transactions and projects related to the export of specific, large-volume capital investment products.
In addition to managing the market risk of foreign buyers (insolvency or other non-payment risk), the insurance products offered by EXIM Hungary also provide insurance to cover any political risks that may arise (embargoes, ban on payments by bank transfer, strikes, war, etc.).