Environmental and social sustainability requirements
EKF assesses the environmental risks and risks related to human rights in the transaction. The risk assessment is based on IFC standards and guidelines.
What does EKF cover?
EKF pays out compensation if the exporter’s bank makes a loss on an export order as a result of commercial or political risks.
Commercial risk occurs when the buyer or the buyer’s bank is unable to pay due to liquidation, insolvency for example.
Political risk occurs when the bank does not receive payment from the foreign buyer or the buyer’s bank due to impediments in the country. Such impediments include war or civil war, currency shortages, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.
EKF covers up to 95% of the bank’s loss, so the bank’s deductible is a minimum of 5%.