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 will pay compensation if the exporter makes a loss on an export transaction or investment abroad as a result of commercial or political risks.
Commercial risk occurs in case of non-payment by the buyer due to liquidation, insolvency or cancellation of the contract.
Political risk occurs when the exporter does not receive payment for products due to impediments in the foreign country. Such impediments include war or civil war, currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.
As a rule, EKF pays a maximum of 90% of the loss in compensation to the exporter. This means that as an exporter, your company must cover a deductible of at least 10%.