The classic buyer’s credit facility has been applied is order to finance the purchases of goods and/or services supplied under a commercial contract concluded between the Hungarian exporter and a foreign buyer, and is typically secured by MEHIB insurance policy (type V).

Credit amount — Typically a minimum of EUR 1 million. In transactions exceeding EUR 20 million, Eximbank usually provides the credit in a co-financing arrangement with the involvement of commercial bank(s). Eximbank participates in the financing of transactions of less than EUR 1 million on an occasional basis, mainly in relation to transactions that are important for their reference value.

Currency — EUR or USD

Tenor — Typically 2-5 years (maximum 10) years, depending on the terms and conditions of the related commercial agreement. Tenor of less than two years is principally available for financing agricultural or relatively small-value manufacturing industry export transactions.

Interest — Fixed, at CIRR (only in the case of tenor in excess of two years), or floating, based on EURIBOR or USD LIBOR.

The extent of financing — In the case of financing facilities offered with a tenor exceeding two years at fixed CIRR interest, under the OECD Arrangement a maximum of 85% of the foreign trade/general contracting agreement may be financed.  A minimum 15% advance must be paid by the buyer at the start of performance. . Local costs may – subject to individual appraisal – also be financed in part.

Certificate of origin — For export transactions financed or guaranteed by Eximbank it is necessary to certify the Hungarian origin of the product and/or services constituting the object of the transaction.