Credit Insurance

1. What is Credit Insurance?
In today’s trade the most often pre-condition for realization of an agreement is to sell on open account. In that way a credit relation created between the supplier and the buyer is causing additional costs and risks for the supplier. Besides the fact that the supplier will wait longer to collect the receivables, the value of the receivables will reduce gradually each day. Trade competition, especially in the international market is far too uncertain, and the implementation of the projects incurs a lot of risk. The risk may be reduced by appropriate insurance instruments.

In order to help the Macedonian companies which sale on credit, the Development Bank of North Macedonia provides short-term insurance of receivables against commercial and political risks.
Commercial risk denotes default of payment by the buyer due to insolvency or bankruptcy.
Political risk
denotes default of payment by the buyer as a result of events in the country as war, riots, occupation, revolution, but also, cancellation of license, non-observance to an agreement, moratorium.

Beneficiaries of credit insurance may be companies registered in the Republic of North Macedonia which sell goods and services with deferred payment not exceeding 180 days.

Export credit insurance will provide:
- secure receivables collection in the country and abroad,
- improved liquidity and balance sheet of the companies in the Republic of North Macedonia
- acquisition of new markets and endurance in the existing ones
- easier access to funding in the capital market

2. Products:

  • Post-shipment insurance of export receivables
  • Pre-shipment insurance of export receivables
  • Post-shipment insurance of domestic receivables
  • Pre-shipment insurance of domestic receivables

3. Procedure and Expenditures for Insurance of Receivables

The potential insured shall submit filled out Credit Insurance Proposal Form. The Credit Insurance Proposal Form shall contain accurate data for realized turnover of the potential insured, countries where the sale is made, manner of managing the uncollected receivables, buyers in which the potential insured participates in the ownership structure, unsettled receivables in the last 3 years, buyers which are in arrears for more than 20 days, balance sheet and income statement, etc. For each buyer separately, the potential insured or already existing insured shall submit filled out Credit Limit Application.
Credit Limit Application shall contain accurate and complete data in regard with the name of buyer, address, if possible identification or tax number, anticipated sale, dynamics of sale, amount of requested credit limit, etc. Processing of each Credit Limit Application costs EUR 75, and for a domestic buyer is MKD 2,400. In case DBNM accepts the potential insured as its client, and at the same time approves credit limit for the buyers the insured has requested credit limit for, DBNM issues a short-term Credit Insurance Policy together with a separate Schedule for Credit Insurance Policy and Credit Limit Endorsement for each buyer separately. The Credit Limit Endorsement determines the special conditions under which the buyer is insured, the premium rate, and the insured percentage. Premium rate may be at least 0.30%, and not more than 3.04%. Premium rate varies in relation to three factors: risk of the buyer’s country, number of buyers insured by the policyholder, and the date of payment. Accordingly, in case an insured has only one buyer, which is located in Montenegro and the term of payment is defined to 180 days, the premium rate that the insured shall pay will be 3.04%. Premium rate shall be the lowest in case the insured has at least 5 buyers to be insured, located in at least three countries. Such case DBNM shall consider as dispersion of risk and shall be able to offer the lowest premium rates. Premium is calculated by application of a premium rate on a declared turnover, and the Insured has an obligation to pay the premium to DBNM to insure its sale. The Client/Insured has an obligation to regularly declare the sales within the valid credit limit by filling out the Declaration of Realized Turnover, and to regularly pay the premium. Insured has an obligation to report to DBNM on a monthly basis for the paid invoices, as well as for the buyers that are in default for more than 20 days by submitting the Notice of Default in Payment Form. The insured has to behave as if he does not have his transaction insured, and to manage well in order to collect its receivables. In certain cases on request of DBNM, debt collection agency shall be hired. Expenses to hire the agency shall be split between the DBNM and the insured depending on the insured percentage. In case the insured still can not collect its receivables, the incurred risk shall be determined either bankruptcy, protracted default (exceeding 180 days from the invoice maturity date), or a political event, and on these grounds insured shall submit Declaration of Insured Event to DBNM. Insured together with the Declaration should submit the complete accompanying documents as: invoice, CMR, customs declaration for the export receivables, accounting card of the buyer, the order or the sales agreement and other documents, if required according to DBNM assessment. DBNM shall process the completed documentation within 60 days and shall make a decision for approval, partial approval or rejection of the Declaration of Insured Event. Rejection of insured event may occur in case the insured consciously and entirely have exposed DBNM at risk, acted negligently, have not taken any action to collect its receivables, continued to sale goods irrespective of the recommendations of DBNM to cancel further sale, if another risk not covered by the Credit Insurance Policy occurred, etc.
Partial approval may occur in case the insured delivered more than the approved credit limit, if there is dispute in connection with the partial amount (DBNM shall pay indemnity on the undisputed amount by the insured) and in similar events. In case there is dispute between the buyer and the insured, DBNM shall extend the period of protracted default until dispute resolution is achieved. DBNM shall not make decision about the grounds of the dispute. In case there is a court verdict in favour of the insured, the insured should submit Declaration of Insured Event stating besides the main receivables, the costs incurred during the court proceedings. DBNM shall pay the agreed insured percentage from the amount set forth in the Declaration of Insured Event. With the indemnification, the insured assigns the right for the receivables to DBNM, and DBNM shall start a recovery procedure. If during the recovery procedure DBNM needs additional documents, the insured shall be obliged to deliver them to DBNM. If DBNM succeeds in recovering the whole amount of the receivables, it shall pay at least 10% to the insured, i.e. the uninsured percentage of the indemnity.

6. Classification of Countries into Risk Categories

- countries listed in alphabetical order and according to risk categories. Risk category: A – the lowest risk, D –  the highest risk.

, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U


Albania D
Andorra B
Armenia C
Australia A
Austria A


Belarus D
Belgium A
Bosnia and Herzegovina C
Bulgaria C


Canada A
Canary Islands B
China C
Croatia C
Cyprus B
Czech Republic B


Denmark A


Estonia C


Finland A
France A


Germany A
Greece C
Guadalupe B


Hong Kong B
Hungary C


Iceland C
India B
Ireland B
Israel B
Italy B


Japan A


Kazakhstan D
Kosovo D
Kuwait B


Latvia D
Liechtenstein A
Lithuania D
Luxembourg A


Macedonia, North C
Malaysia C
Malta B
Martinique B
Mexico C
Moldova D
Monaco A
Montenegro D


Netherlands A
New Zealand A
Norway A


Oman B


Peru C
Poland B
Portugal C


Qatar B


Reunion Island C
Romania C
Russia C


San Marino B
Saudi Arabia B
Serbia C
Singapore A
Slovakia B
Slovenia B
South Africa C
South Korea B
Spain B
Sweden A
Switzerland A


Taiwan B
Turkey B


United Arab Emirates B
United Kingdom A
United States of America A
Uzbekistan D

*In case the country in which you are interested to insure receivables is not on the list, please call our Credit Insurance Division.

Third Tranche Disbursed of EIB V Credit Line in amount of EUR 12,8 million                                Financial Agreement Signed with EIB of EUR 100 million - Phase V                                Export Factoring Interest Rate Lowered from 5% to 4%.                                Loans for ACCOMMODATION FACILITIES.                                AGRO-INDUSTRY Loans with interest rate of 2% ONLY!                                Reduce the risk, insure the sale! Unique opportunity to secure domestic and export receivables.                                Special Credit Guarantee Scheme.