Recovery

Zlatko Salcic

Chapter 20 in Export Credit Insurance and Guarantees, 2014, pp 181-193 from Palgrave Macmillan

Abstract: Abstract In the ECA context, ‘recovery’ means collection of a due and non-paid amount of credit from a foreign buyer. Chronologically, recovery follows the indemnification procedure in which an ECA indemnifies an insured for a due and non-paid amount of credit (Figure 20.1). Recovery of debt in the ECA context is similar to recovery of any other debt, except it always takes place in foreign countries. Recovery against foreign buyers is often more difficult than domestic recovery because of geographical distance, lack of information about foreign buyers, cultural differences, insufficiency of legal actions, lack of rule of law in a foreign buyer’s country, etc. Since ECAs cover credit risks in export credit transactions with foreign buyers from nearly all countries in the world, they have gained significant experience with recovery procedures in numerous foreign jurisdictions. This experience is useful when assessing credit risks in new export credit transactions for which the ECA cover is requested.

Keywords: Credit Risk; Legal Action; Domestic Court; Export Credit; International Monetary Fund Programme (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36681-8_20

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DOI: 10.1057/9781137366818_20

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