Currency Inconvertibility / Exchange Transfer

Currency Inconvertibility and Non-Transfer coverage protects against losses arising from the inability to convert local currency into foreign exchange and transfer it outside the host country. Coverage insures against excessive delays in acquiring foreign exchange caused by host government action or failure to act, by adverse changes in exchange control laws or regulations, and by deterioration in conditions governing the conversion and remittance of local currency.

Lenders can cover the conversion and remittance of principal and interest payments due under the insured loan agreement, while an equity investor can similarly cover its dividend or profit remittances derived from the insured investment and the return of capital. Companies providing management or technical assistance can cover fees and royalties.