Letter of Credit Insurance Policy

Services and Products

With local financial institutions facing the risk of default by international banks issuing letters of credit related to local exports, we offer this product to help improve the acceptance of Letter of Credit received by local financial institutions from foreign banks as well as facilitate access to local exports globally.

Properties

Product Method

1. The local commercial bank provides a list of international banks that issue the L/Cs, including the credit limit volume covered under the policy; SaudiEXIM will review the request and submit an offer to the local commercial bank that includes the approved coverage for each issuing bank

Product Advantages

- Increasing the volume of acceptance of Letters of Credit.
- Increasing the volume of dealing with customers by enhancing letters of credit in many foreign markets.
- Exchanging credit and financial information.

The Sectors Eligible to Benefit from The Product

All sectors are eligible to benefit from the product.

Duration of Insurance Coverage

Short-term

Financing Limit for Coverage

Up to 90% of the volume of the letters of credit.

Eligibility

All local commercial banks and financial institutions