Interbank Buyer’s Credit is granted for the financing, indirectly through the buyer’s bank, of the purchase of goods and/or services supplied under a commercial contract concluded between the Hungarian exporter and the foreign buyer, and is usually secured by MEHIB insurance policy (type V). In this financing structure, Eximbank provides credit to the buyer’s bank, which lends it to the buyer.

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).

Currency — EUR or USD.

Tenor — Depending on the terms and conditions of the related commercial agreement, and determined based on the rules of the OECD Arrangement.

Interest base – Fixed at CIRR.

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 by Eximbank it is necessary to certify the Hungarian origin of the product and/or services constituting the object of the transaction