Costs
The following fees and premiums are incurred by investment guarantees:
- Handling fee when submitting the application (one-off payment per application)
- Premium during the guarantee duration (annually)
Handling fee (per application)
The handling fee covers all services to obtain, administer and process an investment guarantee. It is calculated as follows:
Basis: Maximum amount of the investment guarantee (sum of capital and earnings cover)
- Up to EUR 5 million: No fee is charged
- Amount exceeding EUR 5 million: 0.05 % (total fee does not exceed EUR 10,000)
If the guarantee application is refused, withdrawn or does not lead to a guarantee, 75 % of the handling fee will be reimbursed. If a filed application is considered to have no chance of being accepted, the handling fee will be fully reimbursed.
Guarantee premium
During the duration of the guarantee, a premium is charged for the capital and earnings cover at the beginning of each year. It is calculated as follows:
Basis: Object of cover
- Capital cover: 0.5 % of the maximum amount of the guarantee (p. a.)
- Earnings cover: 0.5 % of the earnings covered in the respective guarantee year (p. a.)
If the cover under the guarantee begins later than the guarantee period a reduced premium of one sixth of the regular premium is charged for that part of the contributions that has not yet been made.
If no bilateral investment protection treaty has been concluded with the host country, the premium may be subject to an increase based on a case-by-case inquiry. However, a reasonable estimate of the premium can be given beforehand.
In countries with a share of more than 20% of the total investment guarantee cover volume, the annual premium is 0.55%.