Counter guarantee

The exporter may arrange for SERV to provide a counter guarantee that SERV will remit specific compensation to the bank issuing the guarantee immediately, upon written demand, in the event of the contract bond being called and the non-fulfilment of contractual obligations on the part of the exporter.

The counter guarantee supplements SERV’s contract bond insurance, making it easier for exporters to obtain contract bonds from banks. Exporters retain their liquidity (particularly with advance payment bonds), as no additional collateral must be provided to the bank.

The exporter remains obligated to provide cover to the guarantor if the contract bond is called. If unable to do so, SERV pays the guarantor the amount specified in the counter guarantee upon first demand. SERV thus covers the exporter’s non-payment risk.

Insured risks:

• Cover against the insolvency of the exporter in the event that a contract bond is called
• Guaranteed compensation of the bond amount specified in the counter guarantee upon first demand if the exporter does not provide cover.

The maximum cover ratio is 100%.

This SERV product is limited until the end of 2015.