Belgian export credit agency Ducroire/Delcredere has altered its premiums.

Changes in risks, as well as premiums, for risks of expropriation and government action:

Decrease:  Libya (goes from category 6 to category 5), Lithuania (from 2 to 1).

Changes in risks, as well as premiums, for war risk:

Decrease: Azerbaijan (from 5 to 4), Belarus (from 4 to 3), Congo, Dem. Rep. (from 6 to 5), Cyprus (Greek)(South) (from 4 to 3), Egypt (from 3 to 2), Guinea (from 5 to 4), Kenya (from 2 to 1), Lithuania (from 2 to 1), Malaysia (from 2 to 1), Serbia and Montenegro (from 5 to 4).

Increase: Bolivia (from 2 to 3), Namibia (from 1 to 2).

Countries are classified in seven categories reflecting Ducroire/Delcredere’s appreciation of the risks. Category 1 groups countries presenting the lowest risks.

The agency has also resumed cover on Albania, Pakistan and Serbia and Montenegro for export transactions with medium and long-term credits and special transactions. It applies to highly productive projects, which have priority for the economic development of the country and which are important for the Belgian economy. Preference is given to small-scale transactions.

The country ceiling for these transactions amounts to €90mn and the country remains classified in premium category 7 (out of 7).

It has also eased its cover policy towards Bulgaria for medium and long-term credit transactions.

The ceiling has been raised up to €450mn (from €300mn) and all restrictive clauses have been suspended.  Premium category 5 (out of 7) remains unchanged.

Henceforth no special conditions apply anymore for the acceptance of medium and long-term transactions on Lithuania , while the ceiling has increased to €600mn (instead of €150mn).

Ducroire/Delcredere has tightened its cover policy for medium and long-term transactions with Paraguay too. Cover of transactions with public buyers is suspended and where private buyers are concerned, preference is given to special transactions. Moreover, all transactions should be productive projects, which have priority for the economic development of the country and which are important for the Belgian economy.

The premium category remains unchanged (6 out of 7) and the ceiling amounts to €90mn (instead of €220mn).

In spite of a rather comfortable liquidity situation, the Venezuelan government has opted for radical exchange controls that can lead to arbitrary distribution of foreign exchange. In order to avoid that the buyer does not meet the requirements to buy foreign currencies, the insurance of new transactions is only possible:

with the authorisation from the “Comisin de Administracin de Divisas” (Cadivi) to buy foreign exchange, to be submitted before the risk arises. For each import transaction, the importer must be in possession of an authorization to buy foreign exchange (see GTR, May/June, p62).

with a bank guarantee, opened before the risk arises.

Public buyers have already been excluded from cover.

Ducroire/Delcredere has adopted a more restrictive policy for export credits exceeding one year and special transactions with Grenada . Henceforth, the country is classified in premium category 5 (instead of 4) and cover is no longer possible for transactions with public buyers.  The ceiling amounts to €25mn.