Subject Matter and Basic Terms

Abstract

This book is about export credit insurance and guarantees provided by export credit agencies to exporters and banks to cover their export credit risks. An export credit risk arises when an exporter sells goods or services to a foreign buyer on credit terms or when a bank provides a loan to a foreign buyer for purchasing goods or services from a country of export. The purpose of export credit insurance and guarantees is to indemnify exporters and banks for losses incurred by non-payment of a credit by a foreign buyer. Export credit agencies are specialised institutions acting on behalf of a state and with the state’s financial support. They are different from private insurance companies that conduct their business on their own account and without state support.