An export credit insurance is necessary when the:

export credit insurance (eci) protects an exporter of products and services against the risk of non-payment by a foreign buyer. In other words, ECI significantly reduces the payment risks associated with doing business internationally by providing the exporter with a conditional guarantee that payment will be made if the foreign buyer is unable to pay. Simply put, exporters can protect their foreign receivables against a variety of risks that could result in non-payment by foreign buyers.

eci generally covers commercial risks (such as buyer insolvency, bankruptcy, or long defaults/slow payments) and certain political risks (such as war, terrorism, riots, and revolutions) that could result in failure of payment. eci also covers currency inconvertibility, expropriation, and changes in import or export regulations. eci is offered to a single buyer or a portfolio of multiple buyers for short-term (up to one year) and medium-term (one to five years) repayment periods. key points

Reading: An export credit insurance is necessary when the:


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