Authorizations, exposure, and country export data

• 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 medium to 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

• 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
• Belgian exporter must enter into a termination insurance policy with Credendo

• 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
• Credendo offers several different products in the trade credit insurance category

• 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

• 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

• 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

• 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

• Unfunded risk participation: Offers banks the possibility of sharing their risks on trade/project-related credits without Belgian content.
• Participation in LC confirmations
• Participation in insurance syndicate
• Investment insurance: Covers commercial failure or political risk of investments, also offered is political risk insurance for investment by Belgian company in a foreign company via equity/quasi-equity or via a structured loan from the Belgian company
• Surety bonds and guarantees
• Forfaiting

• Credendo’s integrity policy applies a set of core ethical principles and a uniform set of rules—all parties doing business with the agency must adhere to it

• The agency assesses environmental and social impacts of the supply contracts it covers, as well as any potential violations of human rights they may give rise to

• The agency ensures that the indebtedness of poor under the Highly Indebted Poor Countries initiative (HIPC) does not increase by only accepting projects for such countries if they constitute a priority for their economic development

• The Credendo Green Package:
• Series of incentives aiming to support the projects and companies that have a positive impact on the environment
• Cover at 98% of the total amount
• Extension to domestic transactions if the product has export potential
• Increased participation in financial guarantees
• An increase in funds for own financing of transactions with an increase in maximum amounts (up to EUR 15 million) and an extension of repayment terms (up to 10 years)

• 2023: Credendo will resume cover on Ukraine