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.