With this policy CESCE insures financing institutions, case by case, against the risks inherent in the confirmation of a documentary credit issued by a foreign entity.

Hence, the insured in this modality is the bank that adds its confirmation to a letter of credit. The purpose of the credit should be the instrumentation of payment of a Spanish export transaction.

Cover is provided in the currency of the documentary credit.

Risks Covered

Generally, coverage includes political and extraordinary risks.

In case the debtor (the issuer of the documentary credit) is a public entity, such coverage also includes the risk of non-payment by the debtor.

Insurance Detail

  1. The exporter spots a business opportunity. His negotiations with the importer result in an order / commercial agreement
  2. The importer requests a local financial institution to open a letter of credit to instrument payment of the operation.
  3. The financial institution issues a letter of credit and requests a financial institution in Spain to add its confirmation.
  4. The Spanish confirming bank applies to Cesce for coverage under the Individual Documentary Credit Policy.
  5. CESCE examines the application for cover to then issue the relevant insurance policy, which enters into force upon signature and premium payment by the confirming bank.
  6. The financial institution adds its confirmation to the documentary credit covered.
  7. The exporter dispatches the goods and sends the shipping documents to the confirming bank.
  8. The documentation is forwarded to the issuing bank (debtor of the operation) for acceptance. The confirming bank pays the exporter.
  9. The issuer refunds the amounts paid to the confirming bank. Failure to make this refund is covered by Cesce under the conditions of the Policy.



1. The financial institution receives an application for confirmation of a Documentary Credit.

As from then, it may get in touch with the person responsible at CESCE to find out about cover options and insurance cost.


2. The financial institution forwards the application for cover to CESCE.

To apply for cover, complete and e-mail the application form to cuentadelestado@cesce.es.

For transactions where the amount of the contract is 600,000 euros or above, accompany the exporter’s signed declaration of compliance with the OECD Antibribery Convention.

3. CESCE processes the application and responds to the financial institution.

CESCE will study the application. If coverage of the transaction is accepted in the conditions set forth, CESCE will issue a binding proposal undertaking coverage of the operation according to the terms approved. The cover proposal will remain valid for a specific period of time. Should cover not be approved in the terms applied for, CESCE will inform the confirming bank of its decision in writing.


4. The financial institution signs the policy and forwards it to CESCE.

The confirming bank receives the policy and returns it duly signed to CESCE. This is an essential prerequisite for the conclusion of the insurance contract.

5. The financial institution pays the premium.

The confirming bank pays the amount of the premium stated in the policy, as and when specified therein. Again, this point is an essential requisite for the activation of the insurance policy.

General Conditioning