New insurance products are being prepared to stimulate the export of Bulgarian producers

Within the overall policy for export promotion and development of small and medium- sized enterprises, the Minister of Economy Bojidar Loukarsky, through the Bulgarian Export Insurance Agency (BAEZ), will prepare new insurance products to support Bulgarian exporters on international markets and will protect them from risks.

BAEZ, in cooperation with the Ministry of Economy, will introduce a new product for SMEs intended for companies with little export experience. The main parameters of the product include a rapid and simplified procedure for application and approval, as well as a consultation about the financial position and reliability of the foreign partner. Transactions with a deferment period up to 180 days will be able to be insured. Risks in export transactions will be financed by the insurance policy of BAEZ.

BAEZ will offer product for larger companies – exporters with experience on the basis of the system for ongoing evaluation of credit risk available to maintain a good data base on the payment history of their foreign counterparts. BAEZ will offer such companies more flexible terms corresponding to the specifics of the risks associated with the company, business and industry. Transactions with deferred payment up to 24 months will be covered, as the companies will be able to obtain cover for commercial and / or political risks for over 150 countries. The main parameters of the product include simplified application procedure, lower insurance premium and additional bonuses for insurance of trade turnover.

Within the measures to promote business, an attention to regions with complex political situation will be paid. Insurance of commercial and political risk will be introduced for such markets. The product provides simultaneous coverage of both the commercial and political risks in export transactions. The simultaneous coverage of commercial and political risks in transactions provides overall stability of the activities of the exporter.

The new services will ensure the receipt of payment in foreign trade transactions and will enable exporters to operate at less stringent and competitive conditions. Exports of Bulgarian companies may be relieved in terms of advance payment, the provision of any additional guarantee and the issuance of letters of credit. Thus, companies will be able to more effectively manage their liquidity, while at the same time they will be able to receive additional working capital by transferring the policy in favor of their primary commercial bank. Through insurance of payments, exporters can increase the volume of their business and reduce risk in the foreign trade transaction as well as are protected from financial crashes.