How do EDC’s domestic guidelines apply to contract insurance and bonding?
EDC will expand domestic bonding with banks through our Performance Security Guarantee programs and with surety companies through reinsurance of their bonding activities in the domestic market, with no sector restrictions. For example, EDC will: • focus on new bonding requirements that exceed the capacity of private sureties, rather than existing surety bonds or bank guarantees; • back surety bonds and provide bank guarantees related to our areas of competence, namely contract performance, including advance and progress payments, performance, labour and material, warranty and supplier payment guarantees; we will not consider domestic bid, reclamation, utility and regulatory bonds; and • provide up to 50 per cent risk-sharing to surety partners. In spite of the additional capacity EDC is adding to the credit market, some companies may still not be able to get a domestic loan or insurance from their financial institution? Why not? We don’t know all the individual circumstances, but, gene
