Insurance of short-term export receivables

Allows exporters to insure receivables with a risk period of less than 2 years

In each insured risk, HBOR can participate with the maximum share of 90%, depending on the risk assessment

For private insurers, it is possible to reinsure against non-marketable or temporarily non-marketable commercial and political risks

Insurance of short-term export receivables for SMEs

SMEs may insure export receivables with a risk period of up to 180 days

Exporters must have annual revenue of no more than EUR 2 million

Amount: Maximum EUR 50,000

Cover: Up to 95%, depending on the risk assessment

Buyer credit insurance

Insures loan to buyer for the purchase of goods and services from the exporter

Proceeds of the loan are disbursed to the exporter

Insurance is provided to buyers or buyers’ lenders

Cover: Up to 95%

Buyer credit direct loans

Finance export of goods and services

Eligible borrowers:

• The commercial bank of a foreign buyer, with whom an exporter has concluded an export contract
• The foreign buyer with acceptable collateral

Manner of implementation by HBOR: Co-finances with other banks or finances on its own

Tenors and loan amount:

• Up to 2 years: Up to 100% of the export contract value
• Over 2 years: Up to 85% of the export contract value

Advance payments paid by buyers:

• At least 15% of the export contract value, due before the first disbursement of the loan
• At least 20% of the contracted price for construction of ships

Maximum local cost financed is 30% of the exported value

Currency: Loans are denominated in the export contract currency

Repayment periods (by type of goods and services exported)

• Consumer goods with service life of 1 year or less, including related services: Up to 6 months
• Consumer goods with service life of more than 1 year, including related services: Up to 2 years
• - Parts and components: Up to 5 years
• Quasi-capital goods (capital goods of lower individual value): Up to 5 years
• Capital goods: Up to 10 years
• For financing the construction of hydro and thermal power plants, and renewable energy projects: Up to 15 years

Principal repayment: Repayment in equal monthly, quarterly, semi-annual, or (exceptionally) annual installments

• Grace period, then the first installment 1, 3, 6, or 12 months after the loan repayment starts

Interest: Determined by creditworthiness of the buyer/bank, the importing country, and the export transaction:

• Fixed interest rate: Cannot be lower than CIRR at loan agreement execution; cannot be lower than CIRR + 0.2% before the loan agreement conclusion
• Variable interest rate: LIBOR/EURIBOR + margin

Fees:

• Loan application fee final borrowers: 0.5% one-off, charged on the committed amount
• Commitment fee: Up to 1%, starting from fulfilling conditions precedent through final disbursement

Supplier credit direct loans

Direct lending to finance the export of goods and services, except consumer goods pursuant to the rules determined by the OECD Consensus

Eligible borrowers: Exporters of goods, works, or services who have concluded an export contract with a foreign buyer

Tenor and loan amount:

• Up to 2 years: Up to 100% of the export contract value
• Over 2 years: Up to 85% of the export contract value

Repayment period: From 180 days to 15 years depending on type of goods and/or services exported

Interest: Depends on the creditworthiness of the supplier and the type of export transaction:

• Fixed interest rate: CIRR + margin (ranges from 0.2%–2%)
• Variable interest rate: LIBOR/EURIBOR + margin

Fees:

• Loan application fee: 0.5% one-off, charged on the committed loan amount
• Commitment fee: Up to 1% on loan amount through final disbursement

Other products

• Pre-export finance insurance: Enables an exporter to obtain working capital by insuring a collection of receivables (up to 80%); typically used when the exporter cannot offer customary collateral to a commercial lender
• Direct delivery of goods and services insurance: A supplier credit insurance product that allows exporters to insure their collection of export receivables (up to 90%) in cases where the buyer has a commercial loan to buy goods and services
• Insurance against losses during production: Allows the exporter to insure against the risk of losses if the buyer terminates the contract due to political or commercial risk events; only granted for special orders from a foreign buyer that cannot be sold to another buyer
• Insurance of bank guarantees issued for winning or performing export contracts: Enables banks to insure the risk of payment under a guarantee (up to 80% cover) owing to calling by a guarantee beneficiary (fair and unfair)
• Pre-export finance, letters of credit, loans, and leasing for SMEs
• Payment and performance guarantees, counter-guarantees, and letters of intent