The classic buyer’s credit facility has been applied is order to finance the purchases of goods and/or services supplied under a commercial contract concluded between the Hungarian Exporter and a foreign buyer, and is typically secured by ECI Trade insurance policy (type V).

Credit amount — Typically a minimum of USD, OR EURO 1 million. In transactions exceeding USD OR EURO 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 an occasional basis, 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 is principally available for financing agricultural or relatively small-value manufacturing industry Exim transactions.

Interest – fixed (only in the case of tenor over two years), or floating, based on pricing in case of USD or EURO 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 Exim 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.