We share the risk with the bank issuing a guarantee, typically a contract guarantee. KUKE’s Counter Guarantee covers the recourse risk on the exporter if the beneficiary of a contract guarantee makes a request for payment under that guarantee. A Counter Guarantee may apply to a single contract, or to an entire guarantee line provided to the exporter by the bank.
How a Counter Guarantee works
- The exporter applies to KUKE for a Counter Guarantee securing a guarantee issued by the bank (within the agreed guarantee limit or an individual basis).
- KUKE’s Counter Guarantee covers the risk of recourse taken on by the issuer of the guarantee (bank) against the exporter if the beneficiary (importer) demands payment under the guarantee. A Counter Guarantee secures 80% of the guarantee amount issued by the bank.
- KUKE’s Counter Guarantee may be used by the exporter as collateral for the bank issuing the contract guarantee.
- The Counter Guarantee covers various types of contract guarantees and payment guarantees.