Interbank Buyer’s Credit is granted for the financing,
indirectly through the buyer’s bank, of the purchase of goods
and/or services supplied under a commercial contract concluded
between the Hungarian Exporter and the foreign buyer, and is
usually secured by ECI Trade insurance policy (type V). In this
financing structure, Exim Credit Bank –(ECB) provides credit to
the buyer’s bank, which lends it to the buyer.
Credit amount — Typically a minimum of USD or EUR 1
million. In transactions exceeding EUR 20 million, Exim Credit
Bank –(ECB) usually provides the credit in a co-financing
arrangement with the involvement of commercial bank(s). Exim
Credit Bank –(ECB) participates in the financing of transactions
of less than USD or EUR 1 million on a case-by-case basis only,
mainly in relation to transactions that are important for their
reference value.
Currency — EUR or USD.
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 are principally
available for the funding of agricultural or relatively
small-value manufacturing industry Export transactions.
Interest – fixed (only in the case of tenor over two
years), or floating, based on pricing in case of EURO or USD
financing.
The extent of financing — In the case of
financing facilities offered with a tenor exceeding two years at
fixed CIRR interest, under the ECB Arrangement a maximum of 85%
of the foreign trade/general contracting agreement may be
financed. A minimum 15% advance must be paid by the buyer at the
start of performance. Local costs may – subject to individual
appraisal – also be financed in part.
Certificate of
origin — For Export transactions financed 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.