What does Export Credit Guarantee mean? Read on to discover the definition & meaning of the term Export Credit Guarantee - to help you better understand the language used in insurance policies.
Export Credit Guarantee
Type of insurance policy that protects an exporter against non-payment (default) by an importer. Offered generally by a country's export promotion agency, it provides the insurance cover on an ad valorem fee that takes creditworthiness of the importer and country risk into consideration. Some agencies, such as export import banks, also offer discounting of the exporter's invoices.
We hope the you have a better understanding of the meaning of Export Credit Guarantee.