Germany, France and Great Britain among top export markets covered under KUKE GAP EX
Businesses that have encountered problems with export credit insurance to markets in the EU and OECD countries during the pandemic can still take advantage of the special solution with guarantees from the State Treasury – KUKE GAP EX.
Polish exporters still have until the end of June – unless the European Commission decides to extend this period – to use the State Treasury backed insurance of trade receivables when selling to markets in the European Union and selected OECD countries.
The KUKE GAP EX and KUKE GAP EX+ instruments were introduced in May of last year, pursuant to the European Commission’s decision. The decision permitted the temporary utilisation of state guarantees when insuring exports during the pandemic due to the difficulties in obtaining cover from commercial insurers. Last year, several hundred Polish entrepreneurs took advantage of this solution at KUKE, and the value of insured turnover can be estimated at around PLN 1.5 billion.
The largest export transactions utilising GAP EX insurance went to Germany (16% share in terms of the amount), France (14%), and Great Britain (9%). Four countries in our region are also on the ‘Top Ten’ list: Slovakia, Romania, Czech Republic, and Lithuania.
Producers of plastics (13%), food and food products were among those who benefited from GAP EX aid most often. The following industries also had an over 5 percent share in the portfolio: wood (9.4%), steel (8.6%), furniture (8.1%), and transport (5.7%).
KUKE GAP EX is tailored for companies that have a receivables insurance agreement and want to increase export sales, whereas KUKE GAP EX+ is for those firms who have been refused a limit by their insurer or have closed it to foreign customers. The insurance guarantees the broadest scope of protection, also covering trade, political, force majeure, inclusive of pandemic risk, as well as defaults in payments by public entities. So far over 2,000 counterparties from 33 countries who unfailingly meet their payment terms have been included in its cover – with only 10 cases of delay noted to date.