The coronavirus has given rise to extraordinary economic circumstances around the world. To offset the negative effects of this and to assist domestic businesses through these difficult times, EXIM has launched a package of “Compensation Programs” for companies engaged in export, and their suppliers, as well as for companies that are planning to start exporting.
EXIM Compensation Program Package
WHO IS EXIM SUPPORTING?
The following businesses facing difficulties due to the coronavirus:
Microbusinesses
Small and medium-sized companies (SMEs)
Mid-cap companies
Large companies
PILLARS OF THE COMPENSATION PROGRAM PACKAGE
EXIM Compensation
Loan Program
- working capital loans for terms of up to 3 years, investment loans for terms of up to 6 years
- in HUF, EUR and USD
- for SMEs, in EUR for 1 year, and in HUF (up to a loan amount of HUF 720 million) for 3 years: fixed 0.1% interest rate
- preferential, fixed interest rates during the entire term:
0,1% - 2,3% HUF
0,1% - 1,69% EUR
2,25% - 4,00% USD - flexible repayment terms
EXIM Compensation
Loan Protection Program
- 100% state subsidied suretyship
- For new working capital loans with a maturity of up to 3 years and new investment loans with a maturity of up to 6 years
- In HUF, EUR and USD
- for SMEs and small/mid-caps, for 80% of the principal amount, and for large companies, 50% of the principal amount
- subsidied, low fees
EXIM Compensation
Insurance Program
- Insurance of deferred trade receivables from export customers
- In HUF, EUR or USD
- for deferred payments of up to 360 days
- exports to both EU countries and developed countries outside the EU*
- currently 100% of Hungary’s export relations can be insured
*US, Canada, United Kingdom, Australia, New Zealand, Japan, Norway, Switzerland, Iceland
EXIM Compensation Loan Program
Download brochure
working capital loans for terms of up to 3 years, investment loans for terms of up to 6 years
In HUF, EUR and USD
for SMEs, in EUR for 1 year, and in HUF (for loans up to HUF 720 million) for 3 years: fixed 0.1% interest rate
discounted and fixed interest rates
0,1% - 2,3% HUF,
0,1% - 1,69% EUR,
2,25% - 4,00% USD
0,1% - 2,3% HUF,
0,1% - 1,69% EUR,
2,25% - 4,00% USD
flexible repayment terms
What is the maximum loan amount I can require?
- up to twice your company’s annual labour costs;
- up to 25% of your sales revenue in 2019;
- in individual cases supported by a liquidity plan, the amount can be larger
Who is eligible for the Compensation Loan Program?
Companies in difficulty after 1 February 2020 where at least one of the following criteria is demonstrably met.
-
declining net sales revenue
-
shorter suppliers’ payment deadlines
-
declining operating profit
-
declining order volumes
-
longer customers’ payment deadlines
-
deteriorating liquidity ratios
-
delay in investments projects
-
operating closures/reduction in shifts
-
staff/wage cuts
Where and how can I apply?
The program is offered by EXIM directly and in refinancing form, so it can be applied for both at EXIM and at commercial banks.
What deadlines should I be aware of?
The loan application can be submitted until 15 December 2021, and the latest date for concluding contracts is 31 December 2021.
How can I prove that my company meets the conditions?
In order to qualify for the loan, you need to show that your company has been negatively affected by COVID-19 and that it is suffering from a liquidity shortage – by submitting a declaration to this effect, supported by a general ledger statement.
EXIM Compensation Loan Protection Program
Download brochure
100% state subsidied suretyship
For new working capital loans with a maturity of up to 3 years and new investment loans with a maturity of up to 6 years
In HUF, EUR and USD
for SME and small/mid-cap, for 80% of principal amount, and for large companies, 50% of the principal amount
subsidied, low fees
What is the maximum amount of credit I can use the suretyship for??
- up to twice your company’s annual labour costs;
- up to 25% of your sales revenue in 2019;
- in individual cases supported by a liquidity plan, the amount can be larger
Who is eligible for the Compensation Loan Protection Program?
Companies in difficulty after 1 February 2020 where at least one of the following criteria is demonstrably met.
-
declining net sales revenue
-
shorter suppliers’ payment deadlines
-
declining operating profit
-
declining order volumes
-
longer customers’ payment deadlines
-
deteriorating liquidity ratios
-
delay in investment projects
-
operational closures/shift reductions
-
staff/wage cuts
What loan protection fee can I expect?
The annual fee for a payment suretyship varies depending on the maturity, with the basis for calculation being the principal amount of the loan:
80% suretyship
50% suretyship
| Y 1 | Y 2-3 | Y 4-6 | |
|---|---|---|---|
| SME | 0,15% | 0,30% | 0,80% |
| Small or Mid-cap company | 0,30% | 0,80% | 1,75% |
50% suretyship
| Y 1 | Y 2-3 | Y 4-6 | |
|---|---|---|---|
| Large company | 0,278% | 0,556% | 1,111% |
What deadlines should I be aware of?
The suretyship application can be submitted until 15 December 2021, and the latest date for concluding contracts is 31 December 2021.
Where and how can I apply?
The EXIM Compensation Loan Protection Program can be applied for at commercial banks in Hungary.
How can I prove that my company meets the conditions?
In order to qualify for the guarantee, you need to confirm that your company has been negatively affected by COVID-19 and that it is suffering from a liquidity shortage by submitting a declaration to this effect supported by a general ledger statement.
EXIM Compensation Insurance Program
Download brochure
Insurance of deferred trade receivables from export buyers
In HUF, EUR and USD
for deferred payments of up to 360 days
for exports to EU countries as well as to developed countries outside the EU*
currently 100% of Hungary’s export relations can be insured
What does the insurance cover?
Insurance of short-term export receivables. Extent of insurance cover: up to 95% of the value of the trade invoice.
In view of the coronavirus pandemic, the insurance can also be used for claims against buyers in developed countries (including the Member States of the European Union). In this way, exports to virtually any country can be insured.
When can I make a claim?
Indemnification can be claimed if the export buyer is unable to pay due to political events, or if it has gone into bankruptcy or liquidation, or even if he shows no willingness to pay even after the payment deadline has passed.
When will I get the indemnification?
EXIM’s indemnification liability typically falls due 90 days after the insurance event. In case of non-payment for example, the insurance event is the invoice due date +60 days, and then you need to add another 90 days onto this. In the case of bankruptcy and liquidation, it’s the day on which bankruptcy or liquidation is declared by the court..
What deadlines should I be aware of?
The insurance contract can be concluded with a maturity date of 31 December 2021. By this date, the export shipment must take place. The maximum deferred payment term is 360 days.
What are the costs for taking out the insurance?
The premiums for the insurance offered under the scheme depend on the uninsured percentage undertaken, the rating of the export buyer, and the term of the deferred payment. The pricing is line with the minimum insurance premium requirement set out in the relevant Communication from the European Commission.
Where and how can I apply?
Applications related to insurance should be submitted directly to EXIM, for the attention of Hungarian Export Credit Insurance Private Limited Company.
EXIM’s financial solutions are able to handle non-marketable risks as well, and so we can provide full professional support in the current situation too..
If you have any questions or requests, feel free to contact your personal advisor, and we are also available to you at karenyhitoprogram@exim.hu.
