INSURANCE PROGRAMS

Türk Eximbank provides cover for Turkish Exporters, against commercial and political risks by offering variety of insurance programs.

Like most of other officially supported export credit agencies, only political risks are considered under the guarantee of the state, whereas losses due to commercial risks are indemnified by Türk Eximbank from its own sources. However, since commencement of the insurance facility, the Bank has sought to reinsure the major portion (currently 70%) of its underwritten short-term commercial risks on the basis of a quota-share treaty concluded with a group of domestic and overseas reinsurance companies. In addition, the Bank has also started to reinsure 70% of the underwritten short-term political risks (excluding the portion due to OECD countries) within specific country limits set by the treaty-leaders since the beginning of 2000. If it is deemed necessary, commercial and political risks assumed in medium- and long-term insurance cover can be ceded to reinsurers, on facultative basis.

Insurance programs of Türk Eximbank are composed of two schemes: short-term export credit insurance; and medium- and long-term export credit insurance. These programs can be outlined as follows:

§ Short-Term Export Credit Insurance Scheme

1. Short-Term Whole Turnover Export Credit Insurance Program

§ Medium- and Long-Term Export Credit Insurance Scheme

1. Specific Export Credit Insurance Program

2. Specific Export Credit Insurance Post-Shipment Political Risk Program

3. Specific Export Credit Insurance Post-Shipment Comprehensive Risk Program

Last saved: July 07, 2005

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