SUPPLIER CREDIT DISCOUNTING

This classic Export post-financing facility offered by Exim Credit Bank –(ECB) Involves the purchase of Export receivables originating from supplier’s credit. The discounting of receivables originating from supplier’s credit provided to the buyer by the Exporter on the basis of a commercial contract is usually secured with a Exim Credit Bank –(ECB) insurance policy (type S).

Credit amount — Typically a minimum of EUR 1 million. In transactions exceeding an amount of EUR 20 million, Exim Credit Bank –(ECB) usually provides the credit in a co-financing arrangement with the involvement of commercial banks. Exim Credit Bank –(ECB) Participates in the financing of transactions of less than EUR 1 million on an ad-hoc basis, mainly in relation to transactions that are important for their reference value.

Currency — USD, EURO.

Tenor — Typically 2-5 years (maximum 10) years, depending on the terms and conditions of the related commercial agreement. Tenor of less than two years is also available, for the funding of agricultural or relatively small-value manufacturing industry Export transactions.

Discount interest rate — The rated will determined with the Nature of the transaction,

The extent of financing — In the case of financing facilities offered with a tenor exceeding two years at fixed, under the ECB Arrangement a maximum of 85% of the foreign trade/general contracting agreement may be financed. In the case of post-financing, a minimum 15% advance must be paid by the buyer at the start of performance.

Certificate of origin — For Export transactions financed or guaranteed by Exim Credit Bank –(ECB) it is necessary to certify the Importer and Exporter origin of the product and/or services constituting the object of the transaction.