Direct buyer’s credit
Key benefits:
- enhanced attractiveness of exporter's offer - buyer is provided with a commercial offer supplemented with BGK's financing offer,
- Polish exporters are able to compete in international tenders,
- contracts with buyers from the countries of increased risk can be easier concluded,
- buyers obtain long-term deferral of their contractual payments,
- KUKE insurance premium can also be financed by the buyer's credit.
Basic terms:
- Repayment period - depends on the Importer's country and the industry - from 2 up to 12 years.
- The Credit may finance up to 85% of the value of the exported goods/services. Not less than 15% of the value of the exported goods/services must constitute the Importer's own share and should be paid to the exporter ("Exporter") as an advance payment, before the commencement of the contract.
- The Credit is drawn after the partial or complete fulfillment of the contractual obligation by the Exporter. A payment is made to the exporter's account, to the debit of the Credit account, against presentation by the exporter of commercial documents compliant with conditions of the export contract and the Credit agreement. The disbursement is effected within 5 banking days from the date of presentation of the documents in BGK.
- The Credit is repaid in equal installments and in equal periods of time, monthly, quarterly or semi-annually. The first installment is payable not later than in 6 months from the date of the fulfillment of the contract by the Exporter.
Costs of the Credit:
- interest based on EURIBOR/LIBOR + margin - to be paid by the Borrower (buyer),
- arrangement fee - to be paid by the Borrower,
- administration fee - to be paid by the Borrower,
- commitment fee - to be paid by the Borrower,
- KUKE insurance premium - calculated by KUKE individually for each Credit (to be paid by the Borrower)
- legal costs - cost of a legal opinion confirming the effectiveness of the concluded Credit agreement and/or the costs of providing and monitoring potential collaterals (covered by the Borrower).
The scheme of financing:
1. Conclusion of a commercial contract between the Exporter and the Importer.
2. Conclusion of an agreement between BGK and the Exporter („Agreement with the Exporter") which advises the Exporter of the terms of the utilization of the Credit, of the disbursement procedure and which defines the principles of cooperation during the period of disbursements the Credit and in the period of repayment of the Credit.
3. Conclusion of the Credit agreement between BGK and the Importer.
4. Provision of the insurance cover by KUKE (upon submission of an application by BGK).
5. Shipment of goods or performance of services by the Exporter, provided for in the export contract.
6. Submission, by the Exporter to BGK, of the commercial documents provided for in the „Agreement with the Exporter" and in the Credit agreement, confirming that the export has been effected.
7. BGK makes a disbursement of the Credit, making a direct payment to the Exporter and simultaneously debiting the Credit account with the amount of the disbursement.
8. The Borrower repays the Credit in installments, in accordance with the schedule prepared by BGK.
The Polish product
The principles of recognition of exported products and services as the "Polish product" are defined in the order of the Minister of Economy of 6th August 2001 (Polish Journal of Laws of 2001, No. 101, Item 1097) which indicates the maximum percentage share of the foreign content in the exported final product, allowing the product to be categorized as the "Polish product".
In general, the foreign content may not exceed 50% of the value of the exported product or service, exceptions are defined in the Order.
Contact:
Project Finance Department:
Tel. + 48 22 522 93 82
Fax +48 22 583 82 65
E-mail: dfpi@bgk.com.pl
Al. Jerozolimskie 7, 00-955 Warszawa