Export Development Canada
Political Risk Insurance
Instrument description
Export Development Canada (EDC), the Canadian Export Credit Agency, offers political risk insurance for Canadian exporters. EDC offers insurance solutions for the following political risk categories:
- Political violence, including political terrorism, war, civil strife.
- Outright expropriation that endangers asset ownership and investments.
- Conversion restrictions: Restrictions or prohibitions of a foreign government for the conversion of local currency to hard currency.
- Transfer restrictions: Prevention of hard currencies from leaving the country where the asset/investment is located.
- Repossession: Issues concerning the repossessing of physical assets that were brought to the foreign country.
- Non-payment: Refusal or inability of a government to make loan payments or provide a financial guarantee.
Eligible projects and transactions
All investments or trade transactions.
Eligible regions
EDC offers their products and services globally. Excluded countries are Afghanistan, Russia and Syria. Restrictions can apply in some jurisdictions. Further details are posted at: https://www.edc.ca/en/country-info.html
Key features
- Size of coverage: The insurance covers 90 per cent of losses that might occur due to political risks.
- Costs: The premiums align with risk categories.
Foreign Exchange Facility Guarantee
Instrument description
Export Development Canada (EDC) is Canada’s fully state-owned export credit agency. EDC offers a foreign exchange facility guarantee (FEFG) to mitigate risks associated with foreign currency fluctuations. The FEFG provides a secure exchange rate without upfront capital, which allows its clients to increase their borrowing capacity. This guarantee will eliminate a project’s vulnerability to foreign price fluctuations and will make it easier to budget upfront costs or predict revenues in foreign currencies.
Eligible projects and transactions
The eligibility of a project is determined on a case-by-case basis by EDC, which focuses on the managerial, technical and financial capabilities of your company.
Eligible regions
EDC offers their products and services globally. Excluded countries are North Korea, Russia and Syria. Restrictions can apply in some jurisdictions. Further details are posted at: https://www.edc.ca/en/country-info.html
Key features
- Tenor of coverage: Foreign exchange derivative contracts are covered for a duration up to three years.
Surety Bond Insurance
Instrument description
Export Development Canada (EDC) is Canada’s fully state-owned export credit agency. EDC´scovers contracts in all industries and sectors, including non-traditional surety markets.
The insurance covers:
- Contractual obligations
- Financial obligations
- Regulatory obligations
The insurance does not cover:
- Surety bonds for which the private market is willing to provide coverage
- Surety bonds for domestic transactions
Eligible projects and transaction
EDC determines the eligibility of a project based on a variety of criteria, which may include the managerial, technical and financial capabilities of the firm applying for the insurance. EDC also considers the contract terms on the bond and macroeconomic conditions.
Eligible regions
EDC offers their products and services globally. Excluded countries are North Korea, Russia and Syria. Restrictions can apply in some jurisdictions. Further details are posted at: https://www.edc.ca/en/country-info.html
Eligible Countries
-
Afghanistan -
Albania -
Algeria -
Angola -
Antigua & Barbuda -
Argentina -
Armenia -
Aruba -
Australia -
Austria -
Azerbaijan -
Bahamas, The -
Bahrain -
Bangladesh -
Barbados -
Belarus -
Belgium -
Belize -
Benin -
Bermuda -
Bhutan -
Bolivia -
Bosnia & Herzegovina -
Botswana -
Brazil -
Brunei -
Bulgaria -
Burkina Faso -
Burundi -
Cambodia -
Cameroon -
Cape Verde -
Central African Rep. -
Chad -
Chile -
China -
Colombia -
Comoros -
Congo, Dem. Rep. -
Congo, Repub. of the -
Costa Rica -
Cote d'Ivoire -
Croatia -
Cuba -
Cyprus -
Czech Republic -
Denmark -
Djibouti -
Dominica -
Dominican Republic -
Ecuador -
Egypt -
El Salvador -
Equatorial Guinea -
Eritrea -
Estonia -
Ethiopia -
Fiji -
Finland -
France -
Gabon -
Gambia, The -
Georgia -
Germany -
Ghana -
Greece -
Grenada -
Guatemala -
Guernsey -
Guinea -
Guinea-Bissau -
Guyana -
Haiti -
Honduras -
Hong Kong -
Hungary -
Iceland -
India -
Indonesia -
Iran -
Ireland -
Israel -
Italy -
Jamaica -
Japan -
Jordan -
Kazakhstan -
Kenya -
Kiribati -
Korea, South -
Kuwait -
Kyrgyzstan -
Laos -
Latvia -
Lebanon -
Lesotho -
Liberia -
Libya -
Liechtenstein -
Lithuania -
Luxembourg -
Macau -
Macedonia -
Madagascar -
Malawi -
Malaysia -
Maldives -
Mali -
Malta -
Marshall Islands -
Mauritania -
Mauritius -
Mexico -
Moldova -
Mongolia -
Montenegro -
Morocco -
Mozambique -
Myanmar -
Nauru -
Nepal -
Netherlands -
Netherlands Antilles -
New Zealand -
Nicaragua -
Niger -
Nigeria -
Norway -
Oman -
Pakistan -
Palau -
Panama -
Papua New Guinea -
Paraguay -
Peru -
Philippines -
Poland -
Portugal -
Qatar -
Romania -
Rwanda -
Saint Kitts & Nevis -
Saint Lucia -
Saint Vincent and the Grenadines -
Samoa -
Sao Tome & Principe -
Saudi Arabia -
Senegal -
Serbia -
Seychelles -
Sierra Leone -
Singapore -
Slovakia -
Slovenia -
Solomon Islands -
Somalia -
South Africa -
Spain -
Sri Lanka -
Sudan -
Suriname -
Swaziland -
Sweden -
Switzerland -
Taiwan -
Tajikistan -
Tanzania -
Thailand -
Timor Leste -
Togo -
Tonga -
Trinidad & Tobago -
Tunisia -
Turkey -
Turkmenistan -
Tuvalu -
Uganda -
Ukraine -
United Arab Emirates -
United Kingdom -
United States -
Uruguay -
Uzbekistan -
Vanuatu -
Venezuela -
Vietnam -
Yemen -
Zambia -
Zimbabwe