Israel Foreign Trade Risks Insurance Corporation (ASHRA)

ASHRA, formally the Israel Foreign Trade Risks Insurance Corporation Ltd., is a wholly government-owned Israeli export credit agency. It provides insurance for eligible Israeli export transactions, particularly medium- and long-term credit, against specified risks that a foreign buyer or other debtor will not pay. The state guarantee supporting its activities enables coverage of risks that private insurers or lenders may be unwilling or unable to assume on comparable terms. ^[1][2]

Purpose and institutional role

ASHRA operates within Israel’s public support framework for exports. It is an export credit agency (ECA): an institution that uses insurance, guarantees, or financing to support a country’s exports by addressing payment and financing risks in international transactions. Israel’s Accountant General describes the need for such support in cases where exporters offer credit to overseas buyers and commercial insurance capacity may be limited, particularly for higher-risk destinations and longer repayment periods. ^[1]

The institution’s role is distinct from that of a commercial bank. ASHRA does not generally replace the exporter’s sale contract or the financing supplied by a bank. Instead, it can insure eligible credit risks associated with an export transaction. Depending on the arrangement, the insured party or beneficiary may be an exporter or a financing bank. Coverage can help reduce the lender’s or exporter’s exposure to specified non-payment events, while the underlying commercial obligations remain in place. ^[3]

ASHRA is also distinct from the Ministry of Finance’s short- to medium-term Long-Up program, which is operated through the Israel Credit Insurance Company (ICIC). A Ministry of Finance comparison describes ASHRA as the government company for medium- and long-term trade credit insurance, while Long-Up is a separate arrangement. The programs have different eligibility, term, underwriting, and approval features. ^[2]

Ownership and state support

The Israeli government identifies ASHRA as fully state-owned. It reports a state guarantee of USD 3.5 billion for ASHRA as of September 2023. The guarantee gives the company a public backing framework for its insurance activity; it is not the same as a direct payment guarantee to every exporter or a promise that every claim will be paid. Individual cover remains subject to the transaction’s eligibility, underwriting, policy terms, and applicable approvals. ^[1]

The state guarantee is part of a broader government approach to trade-risk support. The Accountant General describes separate financial protocols under which the Israeli government may guarantee financing provided by an Israeli bank, alongside a guarantee from the importing country to Israel. These protocols are not identical to ASHRA insurance: they involve intergovernmental arrangements and repayment commitments. ^[1]

Risks and forms of cover

The risks relevant to export credit insurance are commonly divided into commercial and political categories. Commercial risks concern the buyer or another private debtor, such as insolvency or prolonged failure to pay. Political risks arise from actions or events connected with the buyer’s country that prevent payment or the transfer of funds. Examples listed in an Israeli government presentation include war, upheaval, expropriation, restrictions on currency transfer or conversion, and government action that prevents a buyer from paying. ^[3]

ASHRA’s official public-facing government description emphasizes insurance against the insolvency of an importer or purchaser in the destination country for medium- and long-term transactions. The government’s 2025 presentation characterizes ECA coverage more broadly as addressing political and commercial risks, while describing ASHRA’s activity as including medium- and long-term export credit and Israeli investments abroad. It also notes that short-term credit insurance may be provided in market-failure cases. Coverage in a particular case depends on the applicable product and policy; the general list of risks should not be read as confirmation that every event is covered in every policy. ^[1][3]

Transaction terms and eligibility

ASHRA insurance is considered transaction by transaction rather than automatically attaching to every export. According to the Ministry of Finance’s July 2025 program description, an ASHRA application requires underwriting by the company and approval from the Accountant General for the transaction. The comparison published by the ministry describes eligible applicants as Israeli-incorporated exporters and certain subsidiaries whose parent is an Israeli-registered corporation. It also sets out a requirement that at least 30% of the transaction’s content be exported from Israel. ^[2]

The same Ministry of Finance comparison states that ASHRA’s transaction amount is not subject to the stated USD 10 million ceiling applied to Long-Up, and that the ASHRA route is described as having no fixed maximum transaction term in that comparison. These are program-level descriptions, not assurances that a specific transaction will be accepted or insured. The ministry’s presentation describes medium- and long-term credit as typically extending beyond one year and up to 15 years, with terms and cover determined through underwriting. ^[2][3]

The July 2025 presentation lists a 15% advance-payment condition and maximum cover levels of up to 95% for political risks and up to 90% for commercial risks. It also describes a minimum Israeli value-added component of 30% and says underwriting is case-specific. These figures should be interpreted as the framework described in that presentation, not a universal policy promise: actual terms may vary by product, transaction, and approval. ^[3]

The application process described in the presentation begins with an insurance request and assessment of risks and basic conditions. It then proceeds through internal review at ASHRA and an inter-ministerial committee chaired by the Accountant General, with representatives of the Ministry of Economy and Industry and the Ministry of Foreign Affairs. Following a decision in principle, contracts and agreements are reviewed and coverage terms may be offered before a policy is issued to the exporter or bank as beneficiary. ^[3]

How insurance can support export financing

An export credit policy can affect the financing structure of a transaction by reducing the insured party’s exposure to covered non-payment risks. For an exporter, the possibility of insured credit may make it more feasible to offer a buyer deferred payment rather than require payment in full before delivery. For a lender, an insurance policy may serve as collateral support or otherwise inform its assessment of the transaction. The Ministry of Finance states that export credit insurance can support access to bank financing and help exporters compete for projects by enabling financing terms comparable to those offered by overseas competitors. ^[3]

Insurance does not eliminate all transaction risk. It does not necessarily cover every cause of loss, nor does it remove the possibility of uncovered losses, disputes about contract performance, exclusions, waiting periods, or other policy conditions. Nor does insurance itself ensure that a buyer will obtain a loan or that a project will be completed. Those outcomes depend on the commercial contract, financing arrangements, underwriting decision, and the actual terms of cover. ^[2][3]

Market context and limitations

ASHRA’s focus on medium- and long-term export credit reflects a financing gap that can arise when projects require extended repayment periods or involve markets where political and commercial uncertainty constrains private risk appetite. The official materials identify areas such as infrastructure, technology, water and irrigation, healthcare, engineering, information technology, communications, machinery, and education among sectors associated with medium- and long-term insurance activity. These examples describe the fields cited in the government presentation; they are not an exhaustive list of eligible sectors. ^[3]

Because ASHRA’s activity has a state guarantee and public-policy purpose, its insurance is part of the relationship between export promotion, public risk-bearing, and the government’s management of contingent obligations. The guarantee can increase the capacity available to support transactions, but it also means public-sector exposure may arise if insured risks materialize and claims are payable under policies. The Ministry of Finance presents the guarantee and transaction-approval process as components of the government’s export-risk framework. ^[1][2]

Public information on ASHRA’s precise current portfolio composition, outstanding insured exposure by country, and recent claims experience is not provided in the cited overview materials. Therefore, the published guarantee limit should not be treated as the amount of insurance currently outstanding, the value of claims paid, or a measure of the company’s current financial position. ^[1]

Related government arrangements

Israel also uses financial protocols and the Long-Up trade-risk insurance program as distinct tools. Financial protocols involve guarantees between governments and financing banks, whereas ASHRA issues insurance through its underwriting process. Long-Up, as described by the Ministry of Finance, is a short- to medium-term scheme operated by ICIC, with a stated maximum of USD 10 million and coverage up to seven years. Comparing these arrangements requires attention to the debtor, beneficiary, country conditions, duration, limits, and approval mechanism for each program. ^[1][2]

ASHRA’s institutional significance therefore lies in providing a public-backed channel for insuring selected export-credit exposures, especially where longer maturities or elevated country risks can constrain financing. Its support is conditional rather than automatic: the exporting party and transaction must meet program requirements, and the specific cover depends on underwriting, approvals, and the issued policy. ^[1][2][3]