Export Credit Insurance Corporation Joint Stock Company (Poland)

The Export Credit Insurance Corporation Joint Stock Company (KUKE) is a Polish insurance company backed by the Polish State Treasury to provide export insurance. KUKE offers Political Risk Insurance covering all the losses incurred in connection with implementing direct investment abroad. The payment of any due compensation is guaranteed by the State Treasury. Covered political risks are:

• “Decisions in the form of government intervention preventing effective execution of the investment,
• Imposing of a universal payment moratorium,
• Decisions regarding trade restrictions involving the prohibition of export,
• Inability to transfer receivables (e.g. dividends),
• Total deprivation of the possibility of exercising rights under the investment.
• The indemnity is also payable if the investment is destroyed as a result of force majeure, e.g. earthquake, flood, fire or war.”

Eligible Projects and Transactions

• KUKE insures new and long-term investments given that compliance with the relevant law in the country of the investment is fulfilled.
• Insurance covers the following types of direct investments abroad:
  • “Acquisition of a foreign company or its organised part
  • Establishment of a company abroad (including branches and representative offices)
  • Allocation of funds to extending operations of an existing representative office
  • Performance of additional contributions and granting of loans by shareholders
  • Acquisition of real estate and other fixed assets.”

KUKE offers its services on a case-by-case basis. The coverage spans nearly 200 countries worldwide, in line with the current policy regarding officially supported export insurance. KUKE does not indicate which countries they cover and which not.

• Tenor of coverage: up to 15 years.
• Size of coverage: up to 90 per cent of the value of the investment can be covered. This includes the pecuniary obligations, tangible expenditures, intangible and legal assets contributed by the investor to a foreign entity.

https://www.kuke.com.pl/en/companies/direct-investments-abroad/