Topic 7-Export Credit Insurance

Question 1

What are commercial risks

Answer 1

the buyer becomes
insolvent
fails to pay
refuses to take delivery of goods

Question 2

What are country risks

Answer 2

delay in receipt (foreign exchange controls)
import restrictions
cancelled import license
war or political disturbances

Question 3

Why do exporters need export credit insurance?

Answer 3

covers risk and provide security
exporters can obtain financing facilities from banks
venture into new markets
competitive credit terms 
tailor insurance policy 
provides credit evaluation on buyers

Question 4

What are the different type of policies offered by ECICS

Answer 4

comprehensive

specific

Question 5

What are the import financing?

Answer 5

trust receipts
L/C
Factoring

collections (d/p and d/a)
shipping guarantee

Question 6

What are the export financing?

Answer 6

bills discounting
L/C negotiation
Loan packing credits
factoring