Post-financing documentary letter of credit

Letter of credit postfinancing is a financial instrument under which BGK provides a short-term credit to an importer's bank (the issuing bank) who issued a letter of credit (l/c) in favor of a Polish Exporter (the beneficiary of the l/c). BGK transfers funds from the credit to the Exporter (the beneficiary of the l/c) as a payment against documents presented under the l/c.

The credit is secured by an insurance guarantee issued by Korporacja Ubezpieczeń Kredytów Eksportowych S.A. (KUKE)
Postfinancing may be provided in case of confirmed and unconfirmed letters of credit, both payable at sight and with deferred payment. 

Advantages of BGK postfinancing:

  • complements commercial offer of Polish Exporters,
  • enhances attractiveness of commercial offer presented by Exporters,
  • enables transactions in the markets of higher risk,
  • enables adding confirmation to letters of credit from the countries of non-marketable risk,
  • provides deferred payment terms for Importers,
  • Exporters become independent of contracting parties risk,
  • there is no recourse to l/c beneficiaries. 

Basic terms:

  • credit repayment period - up to 2 years,
  • financing of up to 100 % of l/c amount,
  • Seat of the issuing bank shall be located in a non-marketable risk country,
  • l/c is subject to „Uniform Customs and Practice for Documentary Credit", ICC Publication,
  • only products of Poland can be financed by the credit


  • interest based on EURIBOR/LIBOR/WIBOR rates increased by a BGK margin - to be borne by the Importer,
  • BGK's fees and commissions related to the l/c are usually covered by the l/c beneficiary as per BGK Tariff and Commissions Table.

Scheme of transaction:


Trade Finance Sales Team
Transactional Banking Department

tel. +48 22 475 83 08

Al. Jerozolimskie 7, 00-955 Warszawa