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Buyer’s export credit

Buyer’s export credit

Financing of a foreign buyer for the purpose of supporting the export of Slovak businesses – the credit is provided to a foreign buyer (the debtor) or a foreign bank for payment of liabilities toward a Slovak exporter. This credit may be used for the purchase of goods/services or investment units and according to this divided into short-term (up to 2 years) and long-term (to 8.5 years) credits. With credits having a maturity over 2 years the conditions of financing are governed by OECD Arrangement.

Advantages for the exporter

  • The placement of products or services on a foreign territory thanks to a credit which enables the foreign trading partner to pay the exporter according to the contractually agreed conditions.
  • The opportunity for cheaper financing for a foreign buyer in comparison with financing on the local market.
  • The opportunity to take part in projects which are not feasible without a buyer’s export credit.

How it works

Buyer’s export credit

  Diagram explanation note
1. Export
The exporter performs export on the basis of an export contract under agreed payment terms
2a. Provision of Direct Export Buyer's Credit
EXIMBANKA SR provides the foreign buyer with export buyer's credit, which should be used solelyfor the payment for exporter´s supplies.
2b. Provision of Indirect Export Buyer's Credit
EXIMBANKA SR provides the bank of a foreign buyer with export buyer's credit, which should be used solely for the payments for the exporter´s supplies.
3. Making of payments
EXIMBANKA SR shall execute payments to the exporter in the manner and within the terms agreed in the export contract.
4a.
Credit payment by the foreign buyer
Settlement foreign buyer's obligations towards EXIMBANKA SR.
4b. Repayment of credit by a foreign purchaser´s bank
Settlement of foreign buyer's obligations towards EXIMBANKA SR.

Frequently asked questions

For what time period is the credit provided?
For goods or services of short-term consumption, at most up to 2 years, for technological units according to the branch affiliation, in principle, however, to 8.5 years.

What are the basic conditions for providing the credit?
• The foreign buyer must pay 15% of the value of the contract directly to the exporter before or at the very latest upon supply of the goods or services. This condition does not apply if the maturity period of the credit does not exceed 2 years.
• The portion of the contract financed by a buyer’s credit thus may achieve at most 85% of the value of the contract. This condition does not apply if the period of maturity of the credit does not exceed 2 years.
• The share of local costs (i.e. costs having an origin in the country of the buyer) may not exceed 30% the total volume of the contract. Regular, even, at least semi-annual instalments of the loan.

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