C.3.
Insurance of short-term and long-term export supplier credit against political and commercial risks
The insurance covers the political and commercial risks of an export, which is financed in the form of a supplier credit with a maturity period of longer than two years. The insured is an exporter, i.e. a legal or a physical entity, with its registered office in the territory of the Slovak Republic, who provides the supplier credit to a foreign buyer. The insurance covers the risks relating to the payment for goods and services exported abroad. The insurance is especially suitable for the exporters of production machinery and investment wholes. The insurance benefit can be pledged in favor of the commercial bank that provided the exporter with credit. The insurance is paid as a one-off payment and its amount is calculated on the basis of insured value and insurance rate. The insurance rate is determined on the basis of the terms and conditions agreed, the nature of the foreign buyer, and the country of export. The minimal amount of the insured's participation in an insurance accident is 10%. The basic terms and conditions of the insurance are as follows: - a foreign buyer must pay direct to the exporter at least 15% of the value of an export contract as of the date of delivery of goods or services at the latest, - the predominant part of the goods or services of the value of an insurance contract must be of Slovak origin. C.4.
Insurance of manufacturing risk
The insurance covers the manufacturing risk that the insured incurs prior to the shipment of goods or the granting of an export credit to a foreign buyer associated with the cancellation or interruption of the export contract due to the adverse financial situation of the foreign buyer or due to the political and economic situation in the country of export. Interruption of the export contract is defined as a period of six consecutive months. There may be a short period of manufacturing risk, i.e. not longer than two years, and a middle and longterm period, i.e. longer than two years. In effect, the insurance of manufacturing risk can be agreed only as an additional insurance to the insurance of an export supplier or buyer's credit. The insured is an exporter who usually pays the insurance as a one-off payment. Its amount ranges dependent on the risk of the country of export, the character of the foreign buyer, and the period of manufacturing risk. The insured's minimal participation in an insurance accident is 15%. C.5. Insurance of investments of Slovak legal entities abroad The insurance of investments abroad covers the political and other non-commercial risks which cause losses on the return on investments abroad due to (i) impossibility of transferring payments to the Slovak Republic, (ii) expropriation, and (iii) acts of political violence. This is insurance of a new investment or an equity investment in an already existing company or an investment in working capital to support the business expansion of a foreign company. The investment must constitute a long-term obligation on the part of the investor for a period of not less than three years and the investor's profits must depend only on the performance of the foreign company and on the returns on investments. The investment must be realized in compliance with the host country's legal regulations. It must not be at variance with any international agreement on protection and support of investments. The investor must acquire the necessary permits from the administrative bodies of the host country. The insurance covers the following political and other non-commercial risks: impossibility of transferring payments to the Slovak Republic, expropriation, and acts of political violence. The
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