Bank payment guarantees insurance
"Insurance of bank payment guarantees”, such as tender guarantees, advance payment guarantees and guarantees of performance, accelerates the process of making decisions by the banks on issuing guarantees for exporters for obligations to supply products and services. It does not “freeze” the assets of the enterprise, and even ensures the release of a line of credit for other production purposes. By using this service, the exporters affirm their customers the full performance of the obligations under a foreign economic contract. The result is the increased competitiveness of the domestic enterprises-exporters participating in tenders and competitions organized by foreign customers. KazakhExport will provide this service through the banks, whose customers are the domestic enterprises, which also helps to reduce the cost of the service and the speed of decision-making.
Stepwise description of the procedure for the scheme “Insurance of bank payment guarantees”
- The Exporter and the Importer enter into a contract;
- The Exporter submits an application to the Bank to issue a guarantee;
- The Bank submits an application to «KazakhExport» Export insurance company» joint-stock company to insure the guarantee;
- The Bank, the Exporter and KazakhExport conclude a trilateral insurance contract;
- The Bank issues the guarantee covered by the insurance for the Exporter to the Importer.
- Coverage share: up to 95% of the amount of the guarantee;
- Base insurance rate varies depending on the category of the country risk and the guarantee term;
- Supply of Kazakhstani goods, works, and services for export;
- Waiting period: 30 calendar days;
- Insurance payment shall be made on demand by the bank.