Cesce covers financial entities against the risks inherent to the confirmation of a documentary credit issued by a foreign entity or to the direct issuance of a documentary credit by order of a foreign bank.

The credit must be used to pay for a Spanish export transaction.        

Who is the insured party? 

The Insured Party is the bank that grants confirmation of a letter of credit or issues it by order of a foreign bank.

Commercial risks:

Total or partial non-payment of the credit due to insolvency in fact (prolonged default) or a statutory filing in law (bankruptcy, suspension of payments, etc.) of the debtor, provided that it is a private entity.

Political risks:

Non-payment or lack of transfer or convertibility due to situations of political violence, catastrophic events, serious economic difficulties abroad, expropriation, nationalisation of the debtor or guarantors, measures adopted by the Spanish government or by a foreign government, etc., in addition to non-payment of the credit by a public debtor or guarantor.

Eligible amounts in Cesce coverages on behalf of the State

Transactions with a payment term of two years or more

• The buyer is required to make an advance payment of at least 15% of the Exported Value (OECD Arrangement).
• Local Costs may not exceed 50% [40% in Category I countries] of the Exported Value (OECD Arrangement).
• The domestic content included in the contract must constitute at least 30% of the credit covered by Cesce in operations in countries in groups 0 to 4, 40% in countries in groups 5 to 7 and at least 20% in green operations or with SME exporters (Domestic Content Standard).

Transactions with a payment term of under two years

• The OECD Arrangement does not apply to these transactions, and therefore neither do the advance payment or Local Costs rules. Only the minimum national content requirement described above applies to these transactions..

Don’t stop bringing us your transactions. For transactions in which the established limits are exceeded based on the Spanish content, Cesce will look for the most appropriate structure to provide a solution to your financing or coverage needs, through cooperation with other ECAs, with private insurers or multilateral institutions.

Cesce sets the price according to the individual characteristics of each transaction. 

The price is determined by the following elements 
•    The risk rating of the export destination country
•    The creditworthiness of the bank issuing the documentary credit (debtor)
•    The term of the insurance policy

Ask Cesce about the conditions and price of the insurance policy when you identify a possible sale and purchase transaction.

You need to send an application, which will be examined and analysed.

• After receiving an application, Cesce analyses the risk associated with the requested coverage based on the information provided by the Insured Party. 

• The analysis examines the country risk and creditworthiness of the debtor (issuer or ordering party). 

• If approved, Cesce typically issues a Policy directly (without the need to issue a prior offer) in favour of the Insured Party to be executed within a period of 30 days.

If you are interested, please fill in and email the application form to  cuentadelestado@cesce.es.   

If you have any questions, please call +34 91 193 19 99 or send us your details, and we will contact you..