EximBank will continue to issue insurance policies for Romanian companies until 2021
Until 2021, EximBank will continue to issue insurance policies on behalf of the Romanian state for Romanian companies faced with the private insurers' impossibility to cover commercial and political risks for the exports on the European Union market and the OECD countries, reads a press release of the bank sent on Thursday.
According to the bank, since these policies fall into the category of state aid, their launch requires the approval of the European Commission which has recently authorized the extension of the validity of the risk insurance scheme temporarily non-market until December 31, 2021. Initially, the facility was available until December 31, 2016.
"Given that the standard offer of insurers deprived of claims does not fully cover the insurance needs of Romanian exporting SMEs, especially the small ones, EximBank has taken steps to extend the validity of the state aid scheme in order to provide local entrepreneurs with yet another instrument that would ensure a high degree of comfort in doing business with foreign partners. Starting with this year, the insurance short-term requirements have been rendered more flexible and we can insure commercial and political risks, both jointly and separately, which would hopefully allow us to support as many local companies, especially since the scheme has a total budget amounting to nearly 8 million euro," declared Traian Halalai, Executive President of Eximbank.
This type of insurance is designed for SMEs with an annual export turnover of less than two million euro and for exporters (SMEs and large companies) that achieve delivery to a single debtor, if the period of risk exposure (manufacturing time plus trade credit period) is bigger than 181 days.
The bank may hedge the exporters' risks on all international markets, both in the European Union as well as in the Extra-Community space: Europe non-EU (Moldova, Serbia, Montenegro, Bosnia and Herzegovina, Turkey), Middle East, Asia, Africa, Central and Latin America.