Canada-Japan Insurance Deal Tightens Energy Export Ties

Law360, New York (September 18, 2012, 8:38 PM EDT) -- Canada and Japan agreed Tuesday to provide credit risk guarantees for energy and mining export deals, a move attorneys say should unlock affordable trade financing and help connect a flood of new Canadian natural gas with waiting Japanese utilities.

Export Development Canada and Nippon Export and Investment Insurance of Japan will provide a backstop for insurance policies that protect sellers against the risk of nonpayment, covenant breaches on long-term supply contracts, litigation costs and other perils of doing business with a first-time customer. The new program...
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