Concessional Loans to Selected Developing Countries
What can EXIMBANKA SR offer you?
- concessional loan to foreign buyer
- insurance of the concessional loan provided by the commercial bank
What does concessional loan enables you to do?
This type of loan gives the Slovak exporter opportunity to offer concessional financing to his foreign public buyer in selected developing countries. It also allows the exporter to engage in projects, which contribute to the development of the economy and society in given country.
Who can be the recipient of concessional loan?
Foreign public buyer (e.g. Ministries, town, cities, …) in selected developing countries.
Which countries are eligible to receive concessional loans?
The list of countries eligible for concessional loans is in line with the OECD rules, the medium-term development cooperation strategy of the Slovak Republic and the current exposure of EXIMBANKA SR. Countries falling into the 7th OECD risk group will be assessed on an individual basis with respect to the current credit exposure of EXIMBANKA SR.
What is the concessionality?
Concessional Loan is a trade-related aid program granted to a foreign public buyer which is more advantageous than a commercial loan, thanks to grant element for repayment of the part of the loan, lower interest rates and longer repayment terms.
What are the advantages for the Slovak exporter?
- Secured way to penetrate the territories, which are otherwise hard to enter without concessionality.
- Increased competitiveness of the Slovak exporter in developing markets while minimizing the risk.
- "Opening doors" for further activities and cooperation with partners in the territory.
- Gaining experience with development projects and building knowledge in development programs.
Sector priorities of the development cooperation
It is essential that your project meets the provable development aspect!
Visit us early in the preparation stage of your project and we will help you not only to set up the financing structure, but also with verification of the development aspect of the project in accordance with international rules, so that the transaction is eligible for state support. This form of state support for exports is subject to the internationally applicable rules of OECD Arrangement, Chapter III and concessional loans criteria, which are based on the OECD Sustainable lending principles for low-income countries.