Cover for banks or financial institutions protects from the financial loss due to political events or decisions, economic crisis or default of private and public debtors.
Unistrat Coface covers :
- Prefinancing
- Loans
- Letters of credit
- Discounting without recourse, forfaiting
- Projects finance
- Leasing
Unistrat Coface guarantees 2 types of risk on public or private borrowers :
- Non-payment / Non-transfer / Inconvertibility : This cover protects against unpaid or non-transfered debts.
- « Lender’s form » : This guarantee covers the non-reimbursement of the loan due to confiscation, expropriation, nationalization, deprivation or due to political event or decision.
COVER TERMS :
POLICY PERIOD => up to 7 years
INSURED PERCENTAGE => 90% (average)
WAITING PERIOD => minimum 180 days
INSURED PERCENTAGE => 90% (average)
WAITING PERIOD => minimum 180 days
1) For its export client, an European bank confirms a letter of credit opened by a Central African bank for delivery of fertilizers. Due to a lack of currency and funds, the Central African bank does not honor its letter of credit. The European bank makes the payment to the exporter under its confirmation.
The Unistrat Coface guarantee offers compensation for the Central African bank’s non-payment.
2) A bank grants a loan to a foreign company to develop its industrial equipment. After a change of government, the borrower’s operating license is revoked by decree, shutting down its business. It cannot reimburse the loan.
The Unistrat Coface guarantee offers compensation to the bank for non-reimbursement of the credit.
