Buyer credit insurance

Credendo insures a commercial loan to a foreign buyer of Belgian exports

The Belgian exporter can draw on the credit and receive cash payment for the execution of the commercial contract

The foreign buyer obtains mediumto long-term credit to buy Belgian capital goods, services or contract works; it will reimburse the credit at the due dates to the insured bank

Credendo insures Belgian exporters against termination and non-payment of the commercial contracts, as well as banks against non-reimbursement of the credit

Cover:

• Private debtor risk of 95% (98% if the debtor is a bank)
• Public debtor and political risk of 98%
• Insured bank may pass part of the uncovered risk on to the exporter—if cover percentage is 95%, the bank must retain 2% of the principal and 5% of the interest, and is then permitted to pass along 3% of the principal risk to the exporter
• Eligible transactions are export contracts of capital goods, services, and contract works with a min. 15% cash advance payment, and consequently a credit for max. 85% of the contract value
• Currencies: EUR, USD, or other hard currencies; emerging countries’ currencies considered on a case-by-case basis

Eligibility:

• may insure up to 85% of the value of a supply contract

Premium: 

• Calculated in accordance with the borrower’s creditworthiness, the import country, and the tenor of the loan

Buyer credit SME Direct Loan

Credendo can make direct loans to foreign buyers of Belgian capital goods or services. Belgian exporters can draw on the credit and will receive cash payment for the execution of the commercial contract, but they must enter into a termination insurance policy with Credendo. It covers commercial and political risk of an international buyer defaulting on payment of a Belgian export contract. Maximum loan amount: EUR 5 million 

Supplier credit insurance

Covers commercial and political risk of an international buyer defaulting on payment of a Belgian export contract

Maximum insured amount: EUR 10 million

Coverage:

• Private debtor risk of 95% (98% if the debtor is a bank)
• Public debtor and political risk of 98%

Currencies: EUR, USD, or other hard currencies

Eligibility:

• Credendo may insure up to 85% of the value of a supply contract
• Eligible transactions are export contracts of capital goods, services, and contract works with a min. 15% cash advance payment, and consequently a credit for max. 85% of the contract value

Premium: 

Calculated in accordance with the borrower’s creditworthiness, the import country, and the tenor of the loan.

Credendo may offer payment and termination insurance for special cash transactions in respect of capital goods, construction works, dredging operations, industrial projects, and engineering contracts.

The agency may also provide political risk insurance for contracting equipment. This policy insures the Belgian contractor against the risk of destruction of the equipment and against the risk of loss of possession, as well as against not being allowed to remove the equipment from the country where the work has been done.

Import pre-financing

Credendo provides commercial and political risk insurance to Belgian importers against non-delivery of the goods from foreign suppliers. This product generally concerns transactions with raw materials or spare parts destined for production by a Belgian importer. Cover: Up to 95% for political risks; commercial risks also covered in unspecified percentage.

Financial guarantees for bank credits

Credendo may provide guarantees to banks that provide export finance to Belgian companies. Guarantees can often be claimed on first demand without having to give any reason, and are used to protect Belgian exporter against risk which do not depend on its contractual obligations. Guarantees may be provided for bank bonds, working capital, or investments
Guarantee limit: 50% of credit provided by the bank; up to 80% in extraordinary cases. Credit terms are risk participation agreement between bank and Credendo
Fees: Shared with bank; no additional cost to borrower

Financial guarantee for bond issuance; Private placement

Payment guarantees for private bond issues by Belgian companies with international operations. Payment guarantee to investors in private placements where proceeds are used to support exports.

• Tenor: Long-term
• Cover: 50% of bond issue
• Fee: Calculated on risk of issuing company and specific features of the private placement

Export funding guarantee

Provides guarantee to investors and lenders that provide funding for finance of exports

Eligibility: Supervised banks, insurance companies, pension funds, and asset management companies from the EEA, the U.S., Canada, Australia, New Zealand, and Japan; beneficiaries from other countries can be accepted on a case-by-case basis

Currency:

• Typically matches the underlying buyer credit
• EUR, USD, and other hard currencies as approved

Premium: Calculated in accordance with the borrower’s creditworthiness, the import country, and the tenor of the loan. The premium due when guarantee is issued

Reinsurance Programme

European Commission approced Credendo’s initiatives to support programme enabling private credit insurers to continue to fulfill their roles despite the COVID-19 crisis.

Payment terms: 30 to 90 or even 180 days.

The credit insurers undertake to keep the credit limit that were actually used in the 12 months preceding 1 March 2020 – representing a total amount of over 57 billion euros. The program is extended until 30 June 2021, and is subject to formal approval by the European Commission. Credendo, acting on behalf of the State, will act as reinsurer

Credendo Bridge Guarantee

No longer available as from 20 September 2020 since the Belgian support scheme offers similar measures