Over the past few years, many large infrastructure projects in
developing countries have been insured by, among other instruments,
an export risk guarantee of the Swiss Confederation (ERG
guarantee). In order to meet the increasing expectations that the
exporters and financing institutions have in respect of such
insurance, the Swiss legislation on the export risk guarantee (ERG
Law) was partly amended in 1998 and further amendments are expected
in the near future. The following is a summary of the main features
of the Swiss export risk guarantee with references where further
amendments of the ERG law maybe expected.
ERG guarantees
The ERG guarantee is based on the ERG law. The contents of the
guarantee are not, therefore, the result of free negotiations
between the competent governmental authority and the applicant for
the guarantee. The Swiss Confederation cannot, in regards to the
contents of a guarantee under the ERG law, go beyond the contents
and practice of...