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Whole Turnover Export Credit Insurance (Unconfirmed LCs – Multi Bank)

Whole Turnover Export Credit Insurance (Unconfirmed LCs – Multi Bank)
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This product protects Saudi exporters against the risk of non-payment by foreign banks unconfirmed letters of credit, covering both commercial and political risks. The exporter obtains an insurance policy from EXIM bank, which then compensates the Saudi exporter if the foreign bank fails to honor the payment, then the Exim bank later recovers the amount from the defaulting foreign bank.​

Properties
Product Method

1- The importer and exporter agree to use an unconfirmed letter of credit as a payment method for their trade, then the importer applies for an unconfirmed letter of credit from their bank.
2- The foreign bank issues a letter of credit to the Saudi advising bank of the exporter.
3- The exporter enters into an insurance policy contract with Saudi EXIM and pays the insurance premium.
4-In case of default by the importer's bank, the policy holder can claim indemnification from Saudi EXIM.
5- Saudi EXIM later recovers the amount from the foreign bank.

Product Advantages

​- Protecting exporters from losses resulting from commercial and political risks.
- Providing protection for the insured against credit risks.
- Facilitating and increasing access to new markets.
- Reducing costs for Saudi exporters.
- Enhancing export volume and competitiveness of national exports by offering flexible payment terms.
- Providing effective solutions for services and capital goods to help promote national exports.
- Expanding the customer base and developing relationships with international importers.​

The Sectors Eligible to Benefit from The Product

All sectors except crude oil

Duration of Insurance Coverage

Not exceeding 24 months

Financing Limit for Coverage

Up to 90%

Eligibility

​Saudi exporters or companies domiciled in Saudi Arabia