EDC — Performance Security Insurance
Canada
Protection against letter of guarantee losses
grant_single|update February 16, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJuly 1, 2024
- grant_single|closingDateJuly 9, 2024
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Export Development Canada (EDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Protect your cash flow, get coverage of up to 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if a call is triggered by you not being able to meet your obligations due to specific political risks.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 760,000
Financial coverage for the export of medical equipment to Turkey
$ 475,000
Coverage for wrongful calls of guarantee on exported agricultural machinery to Russia
$ 570,000
Coverage on exporting IT solutions to Nigeria
$ 1,425,000
Protection against wrongful calls for exported clean energy technology to India
$ 1,140,000
Protection against wrongful calls for a construction project in Brazil
$ 1,900,000
Coverage for wrongful calls on a renewable energy project in Mexico
grant_single_labels|admissibility
Eligibility for this grant is determined by specific conditions related to the commercial and political risks associated with the applicant's international trade activities.
- The eligibility is assessed based on EDC's review of the letter of guarantee.
- Considerations include the conditions and economic outlook in the applicant's customer's country.
- The customer's profile is also reviewed to determine eligibility.
- The potential for commercial risks, such as wrongful or excessive calls of bank instruments by the counterparty, is evaluated.
- Potential political risks are considered, including rightful calls due to non-performance linked to war, export/import permit issues, government actions, acts of God, and unresolved commercial disputes.
grant_eligibility_criteria|who_can_apply
Eligible companies for this grant must meet the criteria set by EDC, including having a letter of guarantee, a stable economic outlook in their country, and a suitable customer profile.
- Companies with a letter of guarantee
- Companies with a stable economic outlook in their country
- Companies with a suitable customer profile
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for this grant. The summary of eligible expenses includes:
- Commercial risks coverage for wrongful or excessive calls of the bank instrument by the counterparty
- Political risks coverage for rightful calls due to non-performance under the contract related to war, government actions, or acts of God
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. Eligibility is determined by EDC based on a review of the letter of guarantee, conditions and economic outlook in the customer’s country, and the customer’s profile. Commercial risks include wrongful or excessive calls of the bank instrument by the counterparty, while political risks involve rightful calls due to non-performance under the contract based on specific events.
- Review of the letter of guarantee
- Conditions and economic outlook in the customer’s country
- Customer’s profile
- Commercial risks: wrongful or excessive calls of the bank instrument
- Political risks: rightful calls due to non-performance under the contract based on specified events
grant_single_labels|apply
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grant_single_labels|otherInfo
There is additional important information for grant applicants concerning the risks and coverage associated with the grant:
- Understanding the commercial risks covered includes wrongful or excessive calls of the bank instrument by the counterparty based on contractual definitions.
- Political risks are specified, including situations like war, permit cancellations, government actions after policy issuance, acts of God outside Canada, and unresolved commercial disputes.
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