16/07/2026 12:05
Topic:
ST Cover Policy - Gulf Region and Israel
Csaba Simon
|
Dear Colleagues,
We are writing to you to request updated information on your current short‑term cover policies for exports to the Gulf region—specifically Jordan, the United Arab Emirates, and Saudi Arabia—as well as to Israel.
As you know, the outbreak of the armed conflict involving the United States, Israel and Iran in 2026 has had significant implications for regional risk profiles, supply chains, payment behaviour and sovereign/corporate credit conditions. In light of these developments, we would appreciate receiving your latest guidance on the following points:
- Has your institution revised its underwriting policy for any of the above markets since the escalation of the conflict? If yes, please indicate whether you have:
o suspended or restricted ST and/or MLT cover;
o revised country, sector or buyer limits;
o reduced or withdrawn existing credit limits, and if so, based on what criteria; or
o introduced any other underwriting restrictions.
- How would you describe your institution's current risk appetite for these markets compared with the pre-conflict period?
o Increased
o Unchanged
o Moderately reduced
o Significantly reduced
o No new business
- What are currently considered to be the most significant risks associated with these markets? (e.g. political risk, transfer and convertibility risk, foreign exchange restrictions, logistics disruptions, supply chain disruptions, sanctions, banking/payment channel constraints etc).
- Have you introduced any additional underwriting requirements for new transactions in these markets? (e.g. higher premia, shorter tenors, enhanced security, sovereign guarantees, bank guarantees, war risk clauses or other special conditions).
- Have you introduced any changes in the administration of existing covered transactions (e.g. amendments, extensions or claims handling) in the affected markets?
- Have you encountered any operational or compliance-related issues (e.g. sanctions, banking/payment channels or money transfers) affecting the ability to support / cover new or existing transactions in these markets?
- Have you observed any changes in demand from exporters or commercial banks for cover relating to these markets since the beginning of the conflict?
- Have you observed any changes in payment behaviour or claims experience in these markets since the beginning of the conflict?
- Which sectors have been most affected by the change in your institution's risk assessment as a result of the conflict?
- Are you currently considering any further changes to your underwriting policy or country risk approach for these markets that exporters and financial institutions should be aware of?
We would be grateful for any written update, policy note or internal guidance you are able to share. Thank you very much in advance for your cooperation.
Kind regards,
EXIM Hungary |