Institution details

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ASHRA - The Israel Foreign Trade Risks Insurance Corporation (Ashra)

Key facts

  • Established in 1957
  • Ownership: Public
Part of the OECD Part of the Berne Union

Latest update: 03/12/2021

Products

  • Supplier credit
  • Buyer credit
  • Investment insurance

Supplier credit


  • Covers commercial and political risk of an international buyer defaulting on payment for export contract
  • Maximum insured amount: Depends on content
  • Credit terms follow OECD guidelines
  • Single-buyer policies
  • Premium based on calculation of buyer and seller risk, buyer country risk, and tenor of export credit to buyer


Buyer credit 


  • Provides financing for buyers of Israeli exports
  • Financing modalities:
    - Insured loans
    - Bank-to-bank insured loans 
  • Maximum financing size: Depends on eligible content 
  • Credit terms follow OECD guidelines
  • Eligibility guidelines:
    - Minimum Israeli content of goods and services: 25% of contract value
    - Goods are 100% eligible if made in Israel
    - Services are 100% eligible if Israeli content is greater than 75%, otherwise use actual percentage of Israeli content if less than 75%
    - Maximum profit: 5% of contract value
  • Fees:
    - Premium: Calculated case-by-case
    - Commitment fee


Investment insurance 


  • Available to new investments by Israeli domiciled companies or overseas companies controlled by Israeli companies.
  • Eligible investments:
    - Infrastructure investments (e.g., energy, communications, medicine) based on equipment exports from Israel
    - Subsidiaries of Israeli exporting companies
    - Industrial or agricultural enterprises based on either (i) export of Israeli equipment and knowledge, or (ii) that will result in increased production in host country based on regular supply of Israeli raw materials, semi-finished products, or knowledge
    - Tourism
    - Financial institutions
  • Cover availability: Equity investments and capital loans to eligible overseas investments
  • Cover: 90% of investment value
  • Term of cover: Up to 6 years
  • Waiting period: 12 months for claims payment
  • Premium: Up to 1.2% per annum of amount insured
  • Pre-conditions: Host country approval of Israeli investment


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