Authorizations and exposure

• Export credit insurance covers Luxembourg exporters against risks of insolvency or payment default of foreign buyers as well as political risks for short-term facilities
• ODL may cover the risks arising before the delivery of goods or service provided, called risk of cancellation
• For each exporter, a framework agreement is established, defining the scope of the insured contracts, the applicable premium rates, and the general insurance conditions
• Payment terms are usually materialized by bills of exchange, which are drawn by the exporters on their own order and accepted by the foreign buyers, and possibly guaranteed by the buyer’s bank
• ODL covers the risk that the customer defaults in whole or in part on the supplier credit or only repays the debt late, either due to political or assimilated risk (risk of currency transfer, war, revolutions, natural disasters, and risk of expropriation or government action) or from commercial risk
• Insurance of special cash transaction: Commercial and industrial operations that relate to construction works or engineering contracts which extend over several months
• Protects against the risks of cancellation and payment default by the foreign buyer, but also against political and similar risks, such as the risk of currency transfer, war, and revolutions
• The risk of unfair calling of the bank guarantees to be issued by the exporter may also be covered
• Insurance of contract guarantees: Protects the exporter against both unfair calling of the bonds and calling due to a political event or decision
• These guarantees are bid bonds, advance payment bonds, and performance bonds
• ODL may cover bank guarantees to an exporter to arrange in favor of buyer to guarantee his contractual obligations
• In some cases, the beneficiaries can claim against them “on first demand” without having any proof of the exporter’s fault
• Certain costs are non-eligible for support

• The bank directly grants the loan to the buyer at the request of the exporter to finance export transactions
• Eligible goods and services include (but are not limited to): Contracting equipment, services, construction works, project finance, soft (concessional) loans, and financial leasing
• Cover: Political and commercial risks
• Via its bank, the exporter may offer deferred payments at a fixed interest rate, thanks to the interest rate stabilization tool of the Ducroire

• Pre-shipment insurance facility: For Luxembourg importers, who must make an advance payment to its foreign supplier
• Foreign investment insurance:
• Insures foreign investments, including investment loans, especially in emerging countries, where there is a lack of legal certainty
• Tenor: 3 to 15 years
• Cover: Investor is compensated for full or partial loss of the investment and for not being able to transfer the invested funds out of the host country, provided the losses are the direct consequence of a political risk event, including breach of contract
• The insurance normally covers the capital value, but may be extended to the investment income (interests and dividends) as well as to potential further investments
• Financial support:
• Intended to support Luxembourg companies carrying out an economic activity involving export, in their international expansion efforts
• Ceiling of 300,000 EUR per company over a 3 year period
• All Luxembourg exporters are eligible except for companies working in a list of excluded sectors

• Policies available for SMEs and larger exporters

• Individual top-up provides insurance designed to reduce failures in the private credit insurance market, covering losses due to bankruptcy of debtors or a customer payment default

• For companies without private credit insurance policy, the percentage of coverage is limited to 80%

• Environmental and social responsibility requirements

• Anti-corruption requirements