1. Croatian Trade Export Credit Insurance in support of
Open days Workshop “Public Financial Institutions in Europe”, Brussels, 11Oct 2011

2. About HBOR is the Croatian Bank for Reconstruction and Development
Established in 1992 as a specialized financial institution with a public mandate
100% owned by the Republic of Croatia
Credit rating:
Baa3 (Moody’s)
BBB- (S&P)
HBOR’s triple role: ) Development bank
2.) Export finance bank
3.) Export Credit Agency

3. The business of exports
In today’s international trade, a precondition for the realization of an export transaction is very often the possibility of sale with deferred payment, i.e. on credit
This alters the business relation with the foreign buyer to a credit relation, creating additional costs and risks
The usual insurance instruments against non-payment, such as letters of credit and guarantees, are often impossible to obtain from buyers and sometimes offer insufficient security. Therefore export insurance against political and commercial risks has been developed

4. In what Environment do we act?
The primary sector in which HBOR operates is the insurance of non-marketable risks
However, an „escape clause“ allows state intervention where the marketable risks become temporarily non-marketable owing to the unavailability of private insurance or reinsurance capacity
In this way, HBOR can complement the Croatian insurance market in line with EU regulations
HBOR provides comprehensive cover
Coverage can be granted for goods/services of Croatian origin (min.40% content of Croatian goods/services) or less in case of national interest

5. What We Offer Pre-export financing Guarantees Pre-shipment Payment
As a public export credit agency, we offer export credit insurance programs on the state's account
We can accompany the domestic exporter during all stages of the export cycle:
Pre-export financing
Guarantees
Pre-shipment
Payment

6. OUR PORTFOLIO

7. Pre-payment insurance
Pre-export financing insurance
Pre-shipment insurance
Who benefits?
Exporters facing lack of working capital for pre-export financing, in case when no customary collateral can be offered to creditors or in case when the collateral is not sufficient to meet the loan terms and conditions.
Who we protect
We provide support for exporters whose goods are manufactured according to a specific order and cannot be sold to any other buyer.

8. Guarantee insurance
What is the goal?
Promote exporters, who are confronted with the need for first-class bank guarantees issued in favor of their buyers as a condition for entering into export contracts.
Who is insured?
The Program enables banks in the Republic of Croatia to insure the risk of payment under a guarantee issued for the purpose of winning or performing an export contract, owing to an unfair and/or fair calling up to 80% of loss.
Simultaneously, it safeguards exporters against political risks in foreign markets and the risk of unfair calling under a guarantee.

9. Post-shipment insurance
Buyer non-payment insurance
Short-term credit
Insurance & Reinsurance
Medium-Long-term credit
Insurance
for capital goods & services
for consumer goods

10. Overview Easier access to new markets
Exporter can focus on growth & increase in competitiveness
Easier access to financial resources and guarantees
Better chances of winning a tender
Commercial and political risks are transferred to HBOR

11. Industries
Current exposure
by industries

12. Exposure to 47 countries and 650 debtors
on 31 December 2010

13. Between 1999 and 2011 87 indemnities have been paid out

14. HBOR as a public export credit agency
How we are adding value
3,3% of overall Croatian export volume in 2010 insured
As a non-profit institution, we are able to complement the offerings of the private insurance market (non-marketable risks and “Escape clause”)
We insure the risk for countries that the market is not willing to hold
We support small and medium enterprises
Insurance policy is used as a protection and a marketing tool
With taking parts of their risk on us and providing them with easier access to financial resources, we support our exporters and consequently the growth of our economy as a whole
HBOR as a public export credit agency

15. Contacts THANK YOU! www.hbor.hr Strossmayerov trg 9 10000 Zagreb
Croatia
Tel:
Fax:
THANK YOU!