Chapter II: State guarantees for foreign trade

I. – The political risk guarantee may relate to the following two categories of contract: 1° Any contract contributing directly or indirectly to an export transaction or loan contract entered into with a public administration or with a company entrusted with a public service, or giving rise to an obligation contracted by a public administration or by a company entrusted with a public service; 2° Any contract contributing directly or…

Catastrophic risk arises when the debtor is prevented from honouring its commitments as a result of a disaster such as a cyclone, flood, tidal wave, earthquake or volcanic eruption in the debtor’s country of residence.

Monetary risks include transfer risk and foreign exchange risk. Transfer risk arises when political events, economic difficulties or legislative or administrative measures taken outside France prevent or delay the transfer of funds paid by the debtor. The foreign exchange risk arises when the exchange rate of the foreign currency specified in the contract is lower on the day the guaranteed debt is collected than the exchange rate on the basis…

The guarantee may cover the risk of non-payment of sums owed by French companies: a) French or foreign credit institutions, insurance companies or finance companies in respect of sureties, guarantees or counter-guarantees issued by them under contracts directly or indirectly contributing to export transactions ; b) To French or foreign credit institutions or finance companies in respect of contracts contributing directly or indirectly to credit transactions granted for the financing…

The State guarantee provided for in e of 1° of Article L. 432-2 is granted by decision of the Minister for the Economy after it has been established that the credit insurance market has failed. The market failure is established either by a decision of the European Commission relating to short-term export credit insurance policy, or by the production by the applicant of at least four letters of refusal of…

The State guarantee referred to in article R. 442-8-9 is granted in respect of cover pursuant to e of 1° of article L. 432-2 to companies authorised to carry out credit insurance operations in France for guarantees granted by these companies to companies in the following two forms: 1° Granting of a complementary insurance guarantee to a primary guarantee granted by the credit insurer. The amount of this complementary guarantee…

The risk exposure retained by the credit insurer co-signing the reinsurance treaty provided for in e of 1° of Article L. 432-2 is defined as follows: 1° When, in application of 1° of Article R. 442-8-10, the cover provided by the body referred to in Article L. 432-2 consists of a complementary insurance guarantee to a primary guarantee granted by the credit insurer, the exposure to risk retained by the…

Reinsurance by the organisation mentioned in Article L. 432-2 of credit insurance risks under the conditions referred to in Article R. 442-8-10 is subject to the signature by this organisation and the credit insurer: 1° A reinsurance treaty defining the terms and conditions for issuing and implementing guarantees covered by the State, as well as the terms and conditions for reinsuring these guarantees. This agreement is concluded for a period…

Within the meaning of the first paragraph of Article L. 432-1, the use of an entity governed by local law is deemed to be necessary where it is required by the legislation of the country of destination or is a determining factor in the selection of the offer.