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direct-buyers-credit

Direct buyer's credit are intended to finance purchases of Polish capital goods and services made by foreign buyers under contracts concluded with Polish exporters. They are granted directly to the foreign buyers. Each credit is insured by Korporacja Ubezpieczeń Kredytów Eksportowych S.A. (Export Credit Insurance Corporation, „KUKE")

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,

The above fees and their respective levels are charged for each transaction on a case-by-case basis.

  • 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:

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.pl
Al. Jerozolimskie 7, 00-955 Warszawa