Political Risks Include:
- Expropriation i.e. Loss incurred by a foreign business due to an expropriatory measure taken by the host government
- Transfer restriction & currency inconvertibility i.e. loss incurred due to any action taken by the host government that prevents the conversion of local currency into SA Rand or US Dollar or the transfer of S.A Rand or US Dollar from that country
- War & civil disturbance i.e. loss incurred due to acts of war, civil war, rebellion, revolution, civil commotion, terrorism, sabotage and insurrection in the foreign country.
- Breach of Contract i.e. loss incurred due to a material breach, by the host government of a contract entered into with that government.
- Protracted Default i.e. payment default by a government borrower/guarantor
Commercial Risks Include:
- Insolvency i.e. sequestration, liquidation or judicial management of a borrower.
- Protracted default i.e. an undisputed payment default by a borrower.
Level of cover
ECIC provides 100% Political Risk Insurance Cover and 85% Commercial Risk Insurance Cover of the loan amount.
Anti-Bribery Measures in ECIC Transactions
Our activities are based on strong corporate governance and we ensure that our business decisions are based on sound underwriting principles and are anchored on principles of responsible lending. We view business ethics as fundamental to successful business practices.
Developed in response to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (to which South Africa acceded in 2007), our ANTI-BRIBERY POLICY IN ECIC SUPPORTED TRANSACTIONS seek to ensure that ECIC does not knowingly support transactions and export contracts in connection with the transactions that involves bribery