The Exporter, through his frequentation of foreign markets, is exposed to a number of risks that result in non- payment for his exports through no fault of his own. Such risks may be commercial or non - commercial.

The term "Commercial Risks" refers to risks attributable to the buyer such as his refusal to receive the goods, his refusal or inability to pay for the goods after receipt, his bankruptcy, insolvency, or even his procrastination in paying his dues. 

The term "Non - Commercial Risks" refers to risks that are not attributable to either the Explorer or Buyer. These risks result from procedures undertaken by the authorities in the Buyer's country which may prevent the Exporter from obtaining his dues from the buyer, or may lead to losses that he cannot charge the buyer with. Examples of these risks include the cancellation of the import license after shipment of the goods, refusal to allow the goods into the state, interdiction for the goods to cross a territory, confiscation of the goods or their seizure, or the issuance of a decision, decree, or regulation that prohibits or delays payments on external debts. Other examples include the sequestration of the buyer's establishment, the prohibition of the buyer's country's authorities to transfer the exporter's due, the imposition of a of a preferential exchange rate against the Exporter's interests, or the emergence of a state of war that may result in non - payment to the Exporter.

Recognizing the importance of guarantees as an incentive for the development of exports, countries seeking to promote their exports have adopted national programs that provide credit guarantees for export operations. Such programs have become popular in both industrialized and non - industrialized countries.

In Egypt, the government endorsed the "National program for Guarantee" by issuing law no. 21 of the year 1992, thereby establishing the Export Credit Guarantee Company of Egypt and entrusting it with the task of managing the Egyptian Program for Export Credit Guarantees.

• The goal of the program was defined as "the encouragement and development of Egyptian exports and the cooperation in promoting the agricultural, industrial, commercial, and service exports sectors".

• The program was designed to achieve the following:

  - Provide guarantees on export operations dealing in national commodities and services against commercial risks through insurance policies issued by the company and payable to banks and other financing sources.

  - Provide reinsurance on all policies issued by the company by means of agreements concluded by it in the national or international markets for insurance and guarantees.

  - Have the company assume the role of reinsurer by having it accept to reinsure operations carried out by parties having similar activities.

  - Participate in or contribute to national or foreign organizations, establishments, and companies engaged in activities that are similar, complementary or related to the company's, or the aim at the realization of the company's goals