Luxembourg Export Credit Agency (ODL)

Luxembourg Export Credit Agency (ODL) is a public institution that supports Luxembourg´s exporters in their international activities. Their Foreign Investment Insurance covers full or partial loss of an investment and/or inability to transfer the invested funds out of a host country due to political risks listed below. In order to qualify for compensation, the sustained loss must be final and irreversible.

Political risks covered:

• “Expropriation (all forms of nationalization and confiscation, as well as any government action discriminatory in nature and taken against investors or companies in the host country),
• War,
• Transfer restrictions where it is made impossible to transfer invested funds as a result of currency shortages or a general moratorium imposed in the host country,
• Breach of contract, meaning the non-fulfilment or non-compliance with contractual obligations. Those may have been concluded between on the one side the investor or the company in which the investment is realised and on the other side the public authorities of the host country, or government entities or entities regulated by the government.”

Equity investments or stake in a foreign company (either financial stake or tangible contribution); investment loans with 3 to 15 years repayment terms.

The instrument is offered globally. ODL refers to the OECD country risk classification scheme as a baseline for insurance provision and premium fee calculation: https://odl.lu/en/credit-insurance/country-risks/

• Size of coverage: the insurance normally covers the capital value but may be extended to the investment income (interests and dividends), as well as to potential further investments.

Products and services