Export Credit Agency Introduces Online Insurance for Non-Payment Risks from Foreign Buyers

The Export Credit Agency (ECA) has launched a new insurance product, EASY ZED, which allows Ukrainian exporters to protect themselves against non-payment risks for foreign economic contracts in an online format.

This is reported by AgroReview

EASY ZED Insurance Conditions for Exporters

With the EASY ZED product, Ukrainian exporters can insure accounts receivable arising from the execution of foreign economic contracts. This solution protects against full or partial non-payment by foreign buyers for delivered goods, completed works, or provided services. The insurance is conducted entirely online, and the contract is signed using a qualified electronic signature (QES) through the “Vchasy” system, as well as client verification via the “Diia” portal.

“If the foreign buyer fails to make a payment, the ECA will compensate the losses of the Ukrainian exporter within the insured amount,” the agency explained.

The maximum amount of insurance coverage is determined based on the invoice amount minus the advance payment. It cannot exceed 85% of the invoice amount and is limited to the equivalent of 400,000 hryvnias at the NBU exchange rate. The deductible is 0%. The contract duration can be 30, 60, 90, 120, or 180 days, and the currency of choice can be hryvnias, US dollars, euros, or zlotys.

Participant Requirements and Exclusions from Compensation

Only active companies that are not in liquidation or bankruptcy, do not have overdue accounts receivable under contracts with foreign buyers, do not operate in temporarily occupied territories, and are not associated with aggressor countries or sanctioned entities can participate in the program. The foreign counterparty must be registered for at least one year, not in liquidation, have no overdue debts exceeding 30 days, and not be registered in jurisdictions subject to sanctions or designated by FATF as high-risk.

A mandatory condition for concluding the insurance contract is the presence of an advance payment for the invoice. The contract is concluded in the form of accession and is processed electronically.

Insurance does not cover:

• advance payments;
• fines, penalties, and court costs;
• losses from inflation or currency exchange rate changes;
• losses related to product defects or poor-quality performance of works;
• lost profits.

An insured event is considered to be full or partial non-payment for the invoice after the payment deadline specified in the foreign economic contract has passed.