SACE insures against the following risks:

• Credit risks, for the partial or total failure by the debtor to fulfill its payment obligations
• Failed or delayed partial/full restitution of bonds, deposits or advanced payments
• Unfair calling of bonds, required to participate in auctions and bids (as guarantee for advanced payments and/or performance with the commercial contract)
• Production risks, for the unfeasibility in the performance of the commercial contract
• Requisition, confiscation or arbitrary behaviour by a foreign country
• Destruction or damaging of goods related to the insured transaction
• Investment risk that an Italian enterprise faces when it constitutes, holds a stake in or controls a foreign enterprise

Risk-generating events considered by SACE may be of political or commercial nature.

Risk-generating events of political nature:

• Expropriation or any other Government restriction
• General moratorium decided by a foreign government
• Currency transfer restrictions due to political or economic reasons
• Exchange rate fluctuation due to law provisions adopted by the debtor country
• Embargo
• War, civil unrest or natural disasters

Risk-generating events of a commercial nature:

• De-jure or De-fatto insolvency of the debtor
• Debtor/guarantor protracted default
• Purchaser’s arbitrary repudiation, suspension or unilateral termination of a commercial contract or purchaser’s refusal to accept the exported goods and/or services