Between 2011 and 2016, Eximbank’s exposure to export credit insurance and guarantees ranged between EUR 400 million and EUR 500 million
Eximbanka’s export policy and support for exporters play an important role in Slovakia’s economic growth and competitiveness. Since its establishment in 1997, Eximbanka SR has offered a wide range of instruments to support exporters, with export insurance being one of the most important. It is this that provides exporters with protection against commercial and political risks, enabling them to expand safely into new markets.
One of our operating principles is leveraging capital. Our initial capital of one hundred million euros has enabled us to multiply export support, which has contributed to the development of many Slovak companies. Through an appropriate trade policy, resources were created which were then effectively used to promote exports through individual export firms. Since its inception, we have covered commercial or political risks with insurance. The commercial ones include the insolvency or unwillingness of the customer to repay obligations, while the political risks include, for example, instability in the destination country.
Over the years, we have evolved and adapted our services to the changing needs of the market. One of these has at some point been the need for exporters to be assured that their business activities will be protected, allowing them to focus on the growth and expansion of their businesses. We responded by creating a mechanism that met that market requirement. We brought in deferred receivables insurance, where the exporter receives a guarantee that if the customer fails to pay, we will take over the liability for them.
Another important step for us was the introduction of medium- and long-term risk insurance, known as non-negotiable risk insurance. This type of insurance is mainly applied to more complex commercial contracts involving production,
dispatch and assembly of production units in risky territories. The structuring of such deals requires careful planning and the securing of financing through commercial banks, with Eximbank playing a key role in providing the insurance
cover.
However, what I think is very important to emphasise is the transfer of risk from the exporter to the buyer through insurance and financing. The exporter is at risk until it produces and delivers the good or service to the buyer. After delivery, the risk is taken over by the financing bank and Eximbank, and the exporter can concentrate on its other activities.
Between 2011 and 2016, Eximbanka’s exposure to export credit insurance and guarantees ranged between EUR 400 million and EUR 500 million, underlining our significant impact in supporting Slovak exporters. We would also like to highlight this by strengthening our insurance division, which is currently focusing on the renewal and development of structural financing and insurance of buyer loans. In the short term, we plan to increase awareness of our services among the professional public and commercial banks. We are seeking to renew cooperation with Slovak, Czech and foreign banks to increase support for exporters in different markets. An example of this is the cooperation with German banks, which have many years of experience in financing export contracts.
In terms of territorial risk, we focus on supporting exporters in risky markets, including the Caucasus, Southeast Asia and Africa. These markets present high political risks for exporters, but we are ready to insure these risks and support Slovak companies in their expansion efforts. Of course, there are exceptions, such as countries subject to international sanctions where trade activities are restricted.
It is also interesting to support exporters to countries such as Saudi Arabia and the United Arab Emirates, where Slovak companies offer advanced technological solutions. Eximbanka provides them with the necessary financing and insurance, which enables them to successfully implement large contracts and expand into these dynamic markets.
We are a member of the Berne Union, which gives us the opportunity to exchange information and experience with other export credit agencies around the world. For the exporter, our membership guarantees that we follow international standards and rules in export credit insurance, increasing the credibility and efficiency of our services.
Ing. Milan Horváth, Námestník generálneho riaditeľa Eximbanky pre financie a poisťovníctvo
A brief look back at the history of Eximbank SR and its development since 1997 shows that targeted and strategic export support is the key to economic growth and prosperity of Slovakia. That is why we regularly monitor and analyse the needs of Slovak exporters and adapt and innovate our products to maximally support their successful expansion into foreign markets.