Presentation on theme: "Croatian Trade Export Credit Insurance in support of"— Presentation transcript:
1Croatian Trade Export Credit Insurance in support of Open days Workshop “Public Financial Institutions in Europe”, Brussels, 11Oct 2011
2About HBOR is the Croatian Bank for Reconstruction and Development Established in 1992 as a specialized financial institution with a public mandate100% owned by the Republic of CroatiaCredit rating:Baa3 (Moody’s)BBB- (S&P)HBOR’s triple role: ) Development bank2.) Export finance bank3.) Export Credit Agency
3The business of exports In today’s international trade, a precondition for the realization of an export transaction is very often the possibility of sale with deferred payment, i.e. on creditThis alters the business relation with the foreign buyer to a credit relation, creating additional costs and risksThe usual insurance instruments against non-payment, such as letters of credit and guarantees, are often impossible to obtain from buyers and sometimes offer insufficient security. Therefore export insurance against political and commercial risks has been developed
4In what Environment do we act? The primary sector in which HBOR operates is the insurance of non-marketable risksHowever, an „escape clause“ allows state intervention where the marketable risks become temporarily non-marketable owing to the unavailability of private insurance or reinsurance capacityIn this way, HBOR can complement the Croatian insurance market in line with EU regulationsHBOR provides comprehensive coverCoverage can be granted for goods/services of Croatian origin (min.40% content of Croatian goods/services) or less in case of national interest
5What We Offer Pre-export financing Guarantees Pre-shipment Payment As a public export credit agency, we offer export credit insurance programs on the state's accountWe can accompany the domestic exporter during all stages of the export cycle:Pre-export financingGuaranteesPre-shipmentPayment
7Pre-payment insurance Pre-export financing insurancePre-shipment insuranceWho benefits?Exporters facing lack of working capital for pre-export financing, in case when no customary collateral can be offered to creditors or in case when the collateral is not sufficient to meet the loan terms and conditions.Who we protectWe provide support for exporters whose goods are manufactured according to a specific order and cannot be sold to any other buyer.
8Guarantee insuranceWhat is the goal?Promote exporters, who are confronted with the need for first-class bank guarantees issued in favor of their buyers as a condition for entering into export contracts.Who is insured?The Program enables banks in the Republic of Croatia to insure the risk of payment under a guarantee issued for the purpose of winning or performing an export contract, owing to an unfair and/or fair calling up to 80% of loss.Simultaneously, it safeguards exporters against political risks in foreign markets and the risk of unfair calling under a guarantee.
10Overview Easier access to new markets Exporter can focus on growth & increase in competitivenessEasier access to financial resources and guaranteesBetter chances of winning a tenderCommercial and political risks are transferred to HBOR
12Exposure to 47 countries and 650 debtors on 31 December 2010
13Between 1999 and 2011 87 indemnities have been paid out
14HBOR as a public export credit agency How we are adding value3,3% of overall Croatian export volume in 2010 insuredAs a non-profit institution, we are able to complement the offerings of the private insurance market (non-marketable risks and “Escape clause”)We insure the risk for countries that the market is not willing to holdWe support small and medium enterprisesInsurance policy is used as a protection and a marketing toolWith taking parts of their risk on us and providing them with easier access to financial resources, we support our exporters and consequently the growth of our economy as a wholeHBOR as a public export credit agency
15Contacts THANK YOU! www.hbor.hr Strossmayerov trg 9 10000 Zagreb CroatiaTel:Fax:THANK YOU!