Insurance Program for Unfair Calling of Bonds

In order to support the Turkish contracting sector, a new insurance program covering the risk of unfair calling of bonds to be issued for Turkish contractors for their overseas project was introduced at the beginning of 2004. This cover applies to bid bonds, advance payment and performance bonds for Turkish contractors in order to eliminate the risk of unfair calling of bonds. Bonds are issued by a bank in favor of the public buyer based in the borrowing countries for projects undertaken by Turkish contractors or Turkish subcontractors. Under this policy, Turk Eximbank is responsible to indemnify the Turkish contractor, due to a call being made under the bond by reason of events or circumstances beyond the contractor's control.

Last saved: July 05, 2005