Granting of export credit
In order to support the national non-resource exports state companies Vneshekonombank, Rosexim CJSC, MSP Bank OJSC may grant export credits to foreign buyers of Russian goods, works, services (non-credit institutions), foreign banks granting credits to the buyers of products, states, governments and executive authorities of foreign states for the purchase of products. Credit resources are also provided to Russian exporters in order to cover the production costs for subsequent supplies to foreign buyers (pre-export financing).
In particular, the following types of credits may be given:
- Cost funding under export contracts (funds for the fulfillment of obligations under a separate export contract);
- Current cost funding of export supplies (replenishment of working capital in order to fulfill obligations for regular export supplies).
- Funding of exporter’s commercial credit (replenishment of working capital in order to fulfill obligations for regular export supplies).
- Funding of trade turnover with foreign buyers (replenishment of working capital in order to fulfill obligations for regular export supplies).
- Direct credit to foreign buyers (assistance to foreign buyers in the payment for non-resource goods or services of Russian exporters).
- Funding through a confirmed letter of credit (providing foreign buyers with access to funding payments under an export contract through a letter of credit).
- Credit to the foreign buyers’ bank
Main terms of crediting:
- Borrower – importer/importer’s bank/exporter/Russian manufacturer;
- The Russian share in the export contract – at least 30%;
- Credit size – 85-100% of the export contract amount;
- Credit currency – the Russian ruble or the currency of the export contract;
- Credit term – up to 10 years;
- Basic provision:
- insurance coverage of EXIAR JSC;
- assignment of security to receive export proceeds under the export contract (commission agreement between the manufacturer and exporter);
- business owners’ guarantees.
Under the state high-tech exports support program loans are offered at rates that make it possible to significantly increase export opportunities for the company. Loans are available in rubles, US dollars and Euros.