LOn June 21, Indre hosted the Conference on the Reconstruction of Ukraine. During this event, which brought together more than sixty countries and financial institutions, Catherine Colonna, Minister for Europe and Foreign Affairs, recalled the availability of an international investment insurance mechanism.
Implemented by Bpifrance Assurance Export, on behalf of and in the name of the French State, it makes it possible to cover up to 95% of French investment flows in Ukraine. This is a key device in the panorama of export support tools. Several French companies have already submitted requests for coverage.
The investment insurance offered by Bpifrance Assurance Export benefits any French company making a sustainable investment abroad in a new or existing company – whether it is a capital investment, a shareholder loan, or income. investment, etc.
Different types of risks
This long-term insurance mechanism, whose guarantee can extend from three to twenty years, covers political risks and meets Ukraine’s reconstruction needs. The tool was modernized in 2017, in order to better adapt to the specific needs of candidate companies, in particular SMEs and mid-sized companies (ETI), and to encourage them to invest abroad.
The procedure is simple. In order to benefit from investment insurance, the investor must send a request to Bpifrance Assurance Export, which then carries out various analyzes (financial analysis of stakeholders, risks, financial security due diligence, etc.). The operation is then submitted for approval to the Guarantees Commission, an interministerial committee chaired by the General Directorate of the Treasury. If the project meets all requirements, the credit institution issues an investment insurance promise, then issues a policy once the investment project is realized.
The insurance covers different types of risks such as damage to property (partial or total destruction of assets, the impossibility of functioning normally or exercising the rights attached to the investment) or the risk of non-payment or transfer of sums due to the investor. The implementation of this insurance therefore allows companies to not have to bear the risks linked to damage caused directly by acts of war.
Furthermore, Bpifrance Assurance Export encourages French exporters to submit credit insurance requests for contracts concluded with Ukrainian buyers. It may also reinsure within the framework of the Cap Francexport systemcurrent (short-term) trade operations to Ukraine and insured by private credit insurers.
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