Bpifrance Assurance Export
The body that has managed since 2017, in the name and on behalf of the French state, public export guarantees: credit, prospecting, exchange rate, bonds and foreign investments.
Bpifrance Assurance Export has managed since January 1, 2017, in the name, on behalf and under the control of the state, the public export support schemes previously administered by the historical credit insurer. The risk is borne not by the public bank but by the state itself, whose signature backs the commitments: that is what distinguishes a public guarantee from private insurance. The range covers several needs. Credit insurance protects the exporter or its bank against non-payment by a foreign buyer, for commercial and political risks, over tenors the private market will not accept. Prospecting insurance funds part of the costs of winning markets. Exchange rate insurance neutralizes currency movements during a contract negotiation. Bond and prefinancing guarantees ease the issuance of the bank guarantees buyers require. And investment guarantees cover foreign operations against political risks. The activity follows the rules of the OECD Arrangement on export credits, and it is also an instrument of economic and foreign policy, whose sector and country priorities change with government choices.
Textbook case: a French company sells a 40 million euro production line to an African public buyer, payable over seven years. With no private insurer willing to accept such a tenor on that country, the bank finances the buyer credit under a public guarantee covering 95 percent of the risk, the premium being set according to the country risk category fixed at the OECD.
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.