Risk Solutions for U.S. BanksU.S. banks and other commercial lenders that make direct loans to foreign companies are exposed to foreign political and commercial risks of default. Credit insurance through Ex-Im Bank and the private-market credit insurers are available to cover these risks. Insurance on Short-Term Loans to Foreign Companies Coverage can be arranged to protect a financial instituion's short-term (up to 1 year) loans to foreign companies. The loans may be set up on a revolving basis to finance the foreign buyer's imports from a single or multiple U.S. supplers. Insurance on Medium Term Loans to Foreign Companies We can arrange insurance to cover financial institutions' medium-term (up to 5 years) loans to foreign borrows. The loan proceeds must be used by the borrower to purchase capital equipment. Coverage through Ex-Im Bank insures 100% of the loan amount, which can be up to 85% of the contract amount for the equipment purchase. Bank Letter of Credit Policy Through Ex-Im Bank and private insurance markets we are able to arrange coverage for banks against the failure of overseas banks (issuing banks)to pay or reimburse the insured banks on irrevocable letters of credit. Coverage is available to protect against political and commercial risks as causes of default. |
