LEXICON
breach of contract
claim-generating event
commercial risk
commitment
contract
debtor default
expropriation (investment policy)
globality (principle of)
government action
guaranteed proportion
host country (investment policy)
ILC
imputable commitment
indemnifiable loss
indemnity
insurance period
investment
limit on the size of individual transactions
local company (investment policy)
loss account
medium-/long-term
non-guaranteed proportion
non-payment
OECD Arrangement
Paris Club
policy
political risk
premium category
proportion of compensation
recoveries
short-term
sovereign risk
special transactions
subrogation
transfer of the entitlement to indemnities
transfer risk
waiting period
breach of contract
Cancellation is brought about when the execution of the Contract is interrupted for a 6-month period following the occurrence of a claim-generating event as mentioned in the policy.
claim-generating event
Situation or event mentioned in the policy which, by causing the non-payment of the debt or cancellation of the contract, can bring the guarantee into play.
commercial risk
Risk resulting from the deterioration of the debtor's financial situation, leading to the impossibility to pay the debt.
commitment
Amount at risk that Ducroire/Delcredere has to indemnify in case of claim.
contract
Contract concluded between the exporter and his client.
debtor default
Default means that the debtor is unable to honour his obligations or backs out of honouring them for no legitimate reason.
expropriation (investment policy)
Includes all forms of nationalisation of the local enterprise, including creeping expropriation. This can arise from various measures taken by public authorities, taken simultaneously or otherwise, whose accumulation denotes a confiscatory nature.
globality (principle of)
Obligation to subject the exporter's entire turnover or a group of contracts and risks to insurance, agreed with Ducroire/Delcredere and defined in the policy.
government action
These are local authorities' decisions, deficiencies and impairments that are of an arbitrary and discriminatory nature.
guaranteed proportion
Percentage up to which Ducroire/Delcredere covers a risk (limited to maximum 98 % for political risk and 90 % for commercial risk, brought up to 95 % in case of bank guarantee and for the insurance of medium- and long-term credits and special transactions payable on a cash basis). The guaranteed share is applied to the indemnifiable losses to calculate the indemnity.
host country (investment policy)
Country where the investment is effected.
ILC
Irrevocable Letter of Credit.
imputable commitment
Commitment
charged on the country ceiling. These are all commitments insured against non-payment and/or
transfer risk
s.
indemnifiable loss
Debit balance of the loss account, which is used to calculate the indemnity.
indemnity
All indemnities are calculated by applying the guaranteed share to the debt balance in the loss account.
insurance period
Period of one year beginning on the date when the policy is signed.
investment
Contribution made by the insured party to the local enterprise, as described in the Particular Terms.
limit on the size of individual transactions
Maximum acceptable amount of imputable commitments related to each insured transaction on a country. That amount should always be considered as purely indicative.
local company (investment policy)
Natural person or legal entity established in the host country, or the subsidiary or establishment in which the investment is made.
loss account
Enables the definition of the indemnifiable loss, including
| > for non-payment claims : | as a debit the unpaid amount of the claim and as a credit any sum collected in connection with the insured claim, in particular following the realisation of securities or resale of recovered goods. |
| > for cancellation claims : | as a debit the amount of the costs incurred in implementing the contract from the time of its conclusion and as a credit all amounts collected with regard to the insured contract. |
medium-/long-term
Notion used to describe the credit period usually associated with commercial transactions for example regarding capital and industrial projects, contracting works and services.
non-guaranteed proportion
Portion not covered by Ducroire/Delcredere, for which the insured party has to assume exclusive responsibility.
non-payment
Non-payment occurs when there is a failure to recover the sums due under the Contract within the waiting period.
OECD Arrangement
(Arrangement on Guidelines for Officially Supported Export Credits)
Agreement between OECD member countries that, among other things, establishes the maximum acceptable repayment terms for export credits for each buyer country. It also determines the eligibility of countries for trade-related tied aid, as well as the minimum concessionality levels for transactions subject to aid. It is also in the framework of the Arrangement that minimum premium benchmarks are set for 145 countries for the insurance of political
and sovereign risk
for export credits of two years and more.
Paris Club
Informal forum where debtor and creditor countries (among which Belgium) negotiate on official debt rescheduling agreements.
policy
Insurance contract (credit insurance or investment insurance) concluded between the exporter and Ducroire/Delcredere.
political risk
Any event occurring abroad which assumes the nature of
force majeure for the insured or for the debtor, such as in particular, wars, revolutions, natural disasters, currency shortages, government action.
premium category
Basic category used in the calculation of the insurance premium.
proportion of compensation
Proportion between the total amount of the debt at the time of indemnification and the actual amount indemnified.
recoveries
All amounts recovered after indemnification in relation to the indemnified loss.
short-term
Notion used to describe the credit period usually associated with current trade transactions.
sovereign risk
Risk of default by the State itself, usually the Minister of Finance.
special transactions
Special transactions payable on a cash basis are all transactions with a payment period not exceding twelve months and involving constructional work, industrial complexes or engineering services.
subrogation
Legal mechanism by which Ducroire/Delcredere, having indemnified the exporter, holds the exporters rights and shares and can rightfully exercise them against the debtor.
transfer of the entitlement to indemnities
The profit from the insurance, that is to say, the right to receive indemnities in the event of a covered claim, can be transferred to a third party (for example the bank financing it) on agreement from Ducroire/Delcredere.
transfer risk
Risk resulting from an event or decision by foreign authorities that prevents the transfer of the amount of the debt paid by the debtor.
waiting period
Period between the maturity date of the unpaid debt and the date when the policyholder can make the claim.