Romanian state owned bank EximBank, specialising in trade financing, has launched an insurance product aimed at covering the short-term risks faced by Romanian exporters selling to customers in the European Union or OECD countries.

The facility falls under the category of state aid, EximBank says, adding that the European competition authority has decided to consider all commercial and political risks associated with exports to all European Union countries and all OECD countries as being “temporarily uninsurable on the private market until December 31, 2020”.

In other words, the price of the product provided by EximBank is set below the market price.

The product is being offered to the bank’s customers until the end of the year, but it covers the whole repayment risk period that can last up to two years.

“The new facility is aimed at all categories of exporters - small, medium and large enterprises - for which EximBank can cover up to 85% of the losses registered as a result of commercial and political risks related to trading partners from the countries of the European Union and the Organization for Cooperation and Economic Development (OECD),” EximBank announced.

“To benefit from this facility, exporters must have a favorable trade and / or payment history (if there is already a trade relationship), and buyers must have a positive record in terms of compensation, likelihood of non-payment must be acceptable, and the internal and / or external financial rating must also be acceptable,” the statement said.

(Photo: eximbank.ro)

editor@romania-insider.com