Commercial and Financial Contracts

Public Sector Obligor

Contract Frustration

Government action resulting in the failure or refusal of a contracting party, including a financial or performance guarantor, to honour their obligations under a contract.

Typical transactions

  • Pre-export finance
  • Import finance
  • Tolling, barter/ counter trade
  • Sales and purchase contracts
  • Service contracts
  • Letters of credit, on-demand bonds

Perils insured by contract frustration insurance

  • Private obligor non-performance due to government action
  • Government obligor non-performance
  • Arbitration default
  • Import and export restrictions
  • War
  • Transfer delays/ currency inconvertibility
  • Fair and unfair calling of bonds

Private Sector Obligor

Trade Credit Risks
Non-payment by a private obligor

Typical transactions

  • Export and import contracts
  • Trade and commodity finance
  • Bank-to-bank lending
  • Pre-export finance
  • Buyer credit
  • Supplier credit
  • Financing secured by trade receivables
  • Securitisation of receivables
  • Asset-backed financing
  • Acquisitions financing
  • Letters of credit

    Perils insured by trade credit insurance

    • Private obligor non-performance
    • Arbitration default
    • Import and export restrictions
    • War
    • Transfer delays/ currency inconvertibility
    • Fair and unfair calling of bonds