Risk insurance limit
Risk insurance limit is a calculated maximum risk limit that a financial institution is willing to undertake vis-à-vis a particular legal person. During the risk classification process the model takes into consideration the key financial data and figures of the particular foreign company in the previous years (e.g. turnover, EBITDA, debt ratio, etc.), the risk rating of the country where the foreign partner performs the economic activity, the characteristics of the transaction and other subjective factors that may have an impact on the return. The result is an amount that we call risk limit. EXIM can provide financing within this amount; i.e. EXIM can undertake the risk related to the company within the limit of this amount. It is important to emphasize that the risk limit per se does not mean automatic financing, it only provides for the possibility of financing. Another characterising feature of the risk limit is that its extent may change with the changing environment and its impact on the economic activity of the company.