- Annual Report 2006
Annual Report 2005
- Annual Report 2005
BAEZ was established in 1998 as a joint stock company. It is the first Bulgarian insurance company, which offers export credit insurance against commercial and political risks.
The amount of the capital of BAEZ is BGN 10 millions. This capital is 100 % held by the Republic of Bulgaria, represented by the Minister of Economy.
Тhe insurance products offered by BAEZ are:
1.Export credit insurance:
- against short-term commercial risk;
- against short-term non-commercial (political) risk;
- against medium-term commercial and non-commercial risk.
2.Domestic credit insurance.
3.Insurance of bank credit line for pre-shipment financing.
4.Insurance of investments abroad.
5.Insurance of letters of credit.
6.Insurance of bank guarantees
The object of export credit insurance against short-term commercial risk is payments under contracts for export of goods and services, concluded under conditions of deferred payment up to 1 year. The insurance covers risks, related to the foreign buyer - insolvency and protracted default. If the export is to a country with non-marketable risks, BAEZ also covers risks of unilateral cancellation of the contract and non-acceptation of the goods by the foreign buyer.
The insurance cover of export credit insurance against short-term political risk includes the payments under contracts for export of goods and services, concluded under conditions of deferred payment up to 1 year. Covered risks include occurrence of political events in the country of the foreign buyer, leading to non-payment under the export contract.
If the credit period in the export contract is between 1 and 5 years, the exporter can conclude export credit insurance policy against medium-term commercial and political risks. All risks, related to the foreign buyer and its country are covered.
The object of domestic credit insurance is payments under contracts for sale of goods and services between Bulgarian contractors, concluded under conditions of deferred payment up to 180 days. The insurance covers commercial risks, which have occurred within the territory of Bulgaria - insolvency of the buyer and protracted default.
Insurance cover of the insurance of a bank credit line for pre-shipment financing includes a bank credit, granted for the purpose of production of goods or supply of services designated for export. Covered risks are:
This policy can be concluced together with export credit insurance policy with the Bulgarian exporter.
The concluded insurance policy against short-term commercial or non-commercial risk could be transferred to a third beneficiary (usually a commercial bank), when the exporter needs to finance its current activity. Thus, in fact, the policy eliminates the deferred payment, which gives the Bulgarian company a possibility to start production of more goods and to improve its cash flow.
The object of insurance of investments is Bulgarian investments abroad. This insurance covers following risks: (1) non-convertibility of the local currency into convertible one; (2) impossibility for transferring payments from the country of investment to Bulgaria; (3) expropriation, nationalization or confiscation; (4) politically motivated acts of violence: war, revolution, terrorism and sabotage; etc.
The insurance of letters of credit covers the non-honoring by the issuing bank the payment obligation under the conditions of the issued L/C. This cover provides additional guarantee to this financial instrument for banks and exporters.
The insurance of bank guarantees covers the risk of financial loses for the bank under issued export guarantee These loses can arise from a fair or unfair calling on behalf of the principal of the guarantee's sum. Political risks, administrative decisions in the country of the buyer or in a third country, as well as natural calamities are also covered.
According to Regulation № 9 of the Bulgarian National Bank insurance policies, issued by BAEZ on the account of the State, where the bank is either insured or third beneficiary, are classified as "Risk-free collateral".
Benefits
Financial insurance, offered by BAEZ, provide important benefits for the companies. Export credit insurance policies give the possibilities for:
Contacts:
BULGARIAN EXPORT INSURANCE AGENCY (BAEZ)
55, Alexander Stamboliiski blvd., Sofia 1301, Bulgaria
Tel.: + 359 2 923 69 11
Fax: + 359 2 987 06 65
e-mail: baez@baez-bg.com
www.baez-bg.com
