Export Credit Guarantee Issue

Original Language Title: Eksporta kredītu garantiju izsniegšanas noteikumi

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/151305

Cabinet of Ministers Regulations No. 39 in Riga in 2007 (January 9. 4. § 3) export credit guarantee issue Issued under the export credit guarantee law article 13 i. General questions 1. determines: 1.1. guarantor;
1.2. the guarantor's obligations;
1.3. the overall guarantee limit in force;
1.4. warranty procedure;
1.5. guarantee entry into force;
1.6. the order in which the guarantor the guarantee covers damages to the worker;
1.7. the guarantee premium calculation procedure;
1.8. the procedures for risk coverage policy applicable to third countries. 2. State export credit guarantees shall be issued by the guarantor-State limited liability company "Latvian guarantee agency". 3. the total applicable limit of the guarantee may not exceed the liabilities of national guaranteeing associations. The guarantor of the country's liabilities shall not be higher than the public investment in the share capital of the guarantor. 4. the State is responsible for the obligations of the guarantor to the extent the State contribution to the share capital of the guarantor. II. Export credit guarantee procedure 5. debtor's buyer, who represents the State of the purchaser and which cannot, either judicially or administratively, be declared insolvent, and who has entered into a contract with the exporter. 6. Private debtor is a buyer who does not meet the buyer's country and the debtor has entered into a contract with the exporter. 7. Warranty the warranty service worker assesses the guarantor, given the guarantee of workers ' application and the attached documents (annex). 8. before taking a decision on the issue of the guarantee of the guaranteeing association shall assess the guarantees and export of the country party to the agreement, as well as the risks, or the buyer is a public debtor or private debt. 9. In assessing the purchaser, guarantor shall take into account: 9.1 the buyer's legal status;
9.2. the buyer brought claims against the implementation options;
9.3. the purchaser's creditworthiness, funding and sources of income, with respect to the debtor shall assess its ability to erase debts, using resources that are not related to the State the debtor country's available budgetary resources (for example, revenues from local taxes or from providing public services);
9.4. the purchaser's influence or control the degree to which the buyer may be implemented by the national Government. 10. the guaranteeing association shall have the right to refuse warranty service export contract, giving in writing reasonable arguments. The guarantor shall refuse the granting of the guarantee in the following cases: 10.1 guarantee the worker does not submit a properly completed application form, the necessary documents attached or requested additional information on the guarantor;
10.2. in the application, the attached documents or information contains false information. 11. export credit guarantees the worker's application must be filed and registered in the register of the guarantor until the day when the export contract claims arise as a rule on the date of delivery. 12. the total one debtor the issued guarantee cannot exceed 10 percent of the total of the existing guarantee limit. The total number of warrants issued for the debtor cannot exceed 20 percent of the total limit of the existing guarantee, if the debtor to the same group. The total number of warrants issued for the debtor cannot exceed 20 percent of the total limit of the existing guarantee, if the debtor is co-owner of the company. 13. The Cabinet of Ministers may authorize guaranteeing associations to issue a guarantee in excess of the rules referred to in paragraph 12 of the limits a maximum of two times, if such warranty service meet export credit guarantee law and damages the interest does not exceed 70 per cent of the export contract volume. 14. The guarantor with the guarantee of export credit guarantees for workers, which include: 14.1. the conditions under which the guarantor to pay the damages to the worker of Croatia guaranteed export credits guaranteed by sections 15 and 16 of the risk referred to in article;
14.2. the amount of any guarantee;
14.3. the guarantee premium amount and conditions of payment;
14.4. guarantees segto;
14.5. guarantees the worker's obligation to pay the guarantee premium;
14.6. the effective date of the guarantee;
9.1. guarantee the loss relief workers;

14.8. reference that this guarantee was issued by a guarantor under the export credit guarantee law. 15. The amount of the guarantee shall be expressed in dollars or foreign currency, which can be converted in the Republic of Latvia in accordance with the established by the Bank of Latvia exchange rate. The amount of the guarantee in foreign currency must be expressed in local currency at the exchange rate of the Bank of Latvia on a specific day. III. Export credit guarantee arrangements into force 16. Buyer credit guarantee in the event on the date of entry into force of the loan agreement's entry into force, if the export credit guarantee policy and the loan agreement conditions. 17. in the case of the exporting of credit losses of manufacture guarantee shall enter into force on the day the export entry into force of the Treaty, if the export credit guarantee policy conditions. 18. These rules 16 and 17 credit guarantee referred to in paragraph 1 shall enter into force on the day of the contract workers, guarantee full performance that gives the right to the payment. Export credit guarantee may take effect each partial delivery or the date of the transmission, if the guarantee under the export provisions of the contract shall be entitled to payment for the delivered or shipped products. 19. a worker must take all guarantee the policy measures required to ensure that the warranty or other contract or export export credit guarantee is valid and enforceable. IV. The order in which the guarantor shall be borne by the worker's loss of the guarantee the guarantor pays 20 guarantee a worker a sum not exceeding the product and delivery cost, or the total amount of guarantees a worker entitled to receive from the buyer, in accordance with the loan agreement. 21. a worker's claim for damages the guarantor fulfills the requirements of the month following the end of the waiting period. Claims waiting period means the period of time that does not exceed 60 calendar days. Waiting period requirements guarantee the worker is obliged to submit the evidence required for the guarantor to establish the validity of the claim. The waiting period requirement does not apply if the Court decision is a recognized buyer's insolvency or adopted the intergovernmental agreement on bilateral debt restructuring. 22. the loss of Production in the case of a guarantee claim meets the requirements of the month following the end of the reflection period or after the evaluation report the loss to the date of the receipt of, or after the date on which the guarantee is agreed with the guarantor for the amount of the claim. 23. If the loss that guarantees may be requested to pay the workers, refers to the disputed law, guarantor of demand may be postponed until the resolution of the dispute in favor of the guarantee to the worker in court or arbitration, for the loan or the export contract. 24. If the guaranteed loan or the export contract is subject to a bilateral intergovernmental debt restructuring agreement, the guarantee shall follow the provisions of the agreement outlining the pair in relation to the loan or the export contract guaranteed and non-guaranteed. Guarantees worker guarantor gives all the restructuring required for the implementation of the agreement. 25. If the guaranteed amount is included in a bilateral intergovernmental debt restructuring agreement, the guarantor with the bilateral entry into force of the agreement have the right to opt out of this provision, the period referred to in paragraph 22. 26. additional expenses arising from the activities carried out, in order to minimise the Mama reduce or prevent losses, bear costs in proportion to export credit guarantee policy coverage for interest, provided that it had confirmed the guar. excessively high. Additional costs include the costs of the proceedings and other court costs, the need to minimise or avoid loss, but does not include the costs associated with establishing the validity of the claim. However, if such expenses also apply to amounts or maturities not covered by the guarantor, they apply in proportion to the guaranteed and non-guaranteed amounts or maturities. 27. The moment the guarantor, under the guarantee contract, except remuneration paid on the exported, the exporter shall pass and the guarantor takes over all claims against the purchaser in accordance with the export contract. 28. If the liability of the guaranteeing association the termination of the warranty, but the warranty has already received workers compensation (including interest from settlement date), this compensation shall repay the guarantor, the guarantor for all costs and expenses related to the payment of compensation. V. procedure for calculating the guarantee premium 29. Calculating the guarantee premium, the guarantor shall take into account the possible emergence of lose you period, the buyer's legal status, the method of payment and interest. 30. The guarantee premium paid for the guaranteed amount and based on minimum guarantees premium benchmarks under the Organisation for economic cooperation and development (OECD) arrangement on guidelines for officially supported export credits (hereinafter referred to as the OECD agreement on guidelines for nēm) (available in Latvian language Latvian guarantee agency's website on the internet). Comparative data is expressed as a percentage of the value specified to guarantee premium is received in full warranty from the date of entry into force. With respect to export credit risk this reference value is equal to the loan principal or the export contract (re) finance, and, in the case of loss-making equal to the export contract amount, less the advance payment from them. 31. the total amount of the guarantee premium is payable in accordance with the provisions of the Treaty of guarantee in one of the following limits: 31.1. conclusion of the contract date;
31.2. the guarantee after the date of entry into force;
31.3. export the entry into force of the Treaty;

19.5. the loan agreement enters into force. 32. Paying the guarantee premium by instalments or reviewing the interest rate, the guarantor shall take account of its net value (during the day), which correspond to the provisions referred to in paragraph 30 of the guarantee premium amount. Vi. Procedures for risk coverage policy applicable to third countries 33. Guarantor, given the country's macroeconomic indicators and the slow-down in the chemical constraints, justify the risk of a third country cover policy on risk assessment for each third country, outstanding guarantees total loss coverage for each non-member country and a third country risk portfolio composition. 34. the third-country risk cover policy, guarantor take into account each debtor country classification in accordance with the OECD arrangement on guidelines for nēm. 35. The guarantor has the right to suspend or restrict the export contract tēšan guaranteed with regard to specific third country (despite this country's classification under the OECD arrangement on guidelines), based on the respective country: 21.8. total outstanding exposure;
35.2. the proposed total amount of guarantees;
35.3. new guaranteed export contract amount;
35.4. the deal, the maximum guaranteed amount. 36. with regard to the lowest risk group of third countries, in accordance with the OECD guidelines the Board with One of the guarantor does not impose any constraints on Garanti's policy. In the case of the other third countries, the guarantor has the right to determine the restrictions the warranty policy in accordance with State policies. If the guarantor does not offer guarantees for third country or group of countries, in exceptional cases it can guarantee a specific export contract, if required to ensure the bilateral policy or national interest or if the export performance of the contract are required in freely convertible foreign currency. 37. The guarantor in respect of third countries, irrespective of the classification of the country concerned in accordance with the OECD arrangement on guidelines have the right to apply one or more of the conditions of the guarantee: 37.1. pay or transfer the warranty given by the third country, the central bank or Ministry of finance, or other similar institution with the corresponding functions and tasks;
37.2. irrevocable letter of credit or a bank guarantee;
37.3. claim waiting period;
23.2. the guarantee percentage reduction;
37.5. the guarantee limit for specific sectors of activity or for certain types of projects. VII. Export credit guarantees the worker's application form filling conditions 38. Application completed according to the contents of the form. 39. Application form with respect to the payment and securities: 24.3. documents that are the basis of payment;
39.2. If the ownership of the certificate is sent to another person (for example, with banks among the Pygmy, has consigned agent) and this document is not available prior to the payment or if the ownership of the certificate is sent directly to the buyer;
39.3. If payment must be carried out against an irrevocable letter of credit, bank, which opened a letter of credit, and information about when the letter of credit is open and affordable;
24.5. If the buyer is willing to accept the draft, details about when and to what documents a bill of Exchange is available. 40. the application form for the start of the credit value of the export contract amount outstanding. 41. If the draft or letter of credit is issued and payable elsewhere than specified in the contract, this shall be indicated in the application form for payment. Unless otherwise specified in the contract, the buyer is committed to fulfil its payment obligations for payment of the draft at the time or place to be specified in the credit. 42. The submission form in relation to the origin of the goods or services produced goods as "own" refers to goods that are produced by the exporter (even if different origin are used in the manufacturing process of the product). Different origin for use in the manufacturing process of the product does not require a detailed description of the origin of the components: 42.1. If export contract without exporting the same products also contain other Latvian or foreign company manufactured goods, indicate the country of origin, manufacturer, and the purchase price of the goods;
26.2. export contract is subcontracted many participants, only the main (largest) of them. 43. the application form for associated corporations indicates economic interest. A corporation is not considered to be related if economic interests linked to shares and 5% or less of the share capital. The Corporation is considered to be related in the following cases: 43.1. one company is the economic interests of other commercial activities or public property;
43.2. the two companies are the economic interests of the public or the third commercial property;
43.3. the third company is the economic interests of both general public or commercial property. 44. the application form for the creditworthiness of the buyer and guarantor credit rating report (assessment of creditworthiness) provides credit information in the Agency informed with at least five years work experience. If the report is not a national language, accompanied by a certified translation. Informative reference to European Union directive rules included provisions deriving from Council of 7 May 1998 Directive 98/29/EC on harmonisation of the concerning export credit insurance for medium and long-term transactions. Prime Minister a. Halloween economic Minister j. Malcolm annex Cabinet 2007 January 9, Regulation No 39 export credit guarantees the application of the model workers, economic Minister j. Malcolm