FInsurance of a Credit for Pre Export Financing of Production for Export

Pre-export financing the production for export (pre-export credit) is a credit provided by the bank to the exporter (or producer) for financing the production for export and in case of positive experience with a certain exporter also for financing investment into production for export.

The Insured is the bank and the insurance may be agreed only in connection with insurance of any type of export credits, e.g. for sufficient reinsurance of payments of export claims.

The maturity term of the export credit has influence on the amount up to which the pre-export credit may be insured. If the maturity of the export credit is maximally 2 years, the pre-export credit may be insured up to the amount of 85 % of export value and if the maturity is longer, up to the amount of 75 % of export value. The pre-export credit for investments into the export production may be provided only if at least 75 % of production is determined for export and repayment of at least 75 % of pre-export credit is assured contractually.

The subject of insurance of Export Guarantee and Insurance Corporation a.s. (EGAP) are claims of the insured towards the debtor following from the pre-export credit for the payment of principal, credit interests for each credit period and fees following from the credit contract.

The insured event is a partial or complete non-payment of the credit due to exporter's incapability to perform the export contract or producer´s incapability to produce the goods or to provide the services for export.

The premium amount depends on the amount and the term of the provided pre-export credit, exporter's risk rating and deductible amount.

The preliminary premium calculation is available through interactive calculator.

• The share of the borrower's exports in the total annual revenue from the sale of products, services and goods for the last accounting period was at least 25 %.
• Criteria for assessing export potential - increasing international competitiveness (at least one of the listed criteria must be met):
  • Demonstration of customized production coverage with increasing export share
  • Higher value-added productionAcquiring new customers and markets
  • Helping with the liquidity of an export-oriented company
  • Creating jobs in the Czech Republic
  • Awarding subcontracts to Czech companies
  • Traditional experienced Czech manufacturers with references
  • Czech protected know-how
  • Support for SME subcontractors for export
  • Acquisition or establishment of a trading company in the Czech Republic to strengthen the export capability of the company

• Vyhodnocení ze strany žádající banky, že požadovaný úvěr svým účelem přispívá k posílení mezinárodní konkurenceschopnosti dlužníka

• U úvěrů investičního typu předložení analýzy návratnosti investice/úvěru pojištěnou bankou
• U úvěrů provozního typu předložení analýzy potřeby pracovního kapitálu pojištěnou bankou
• Kontrola účelu úvěru bankou při čerpání dohodnutým způsobem
• Bezproblémová kreditní historie^[1] Subjektů^[2] zúčastněných na obchodním případu
• Subjekt dlužníka existuje a vykonává činnost, na kterou je poskytován úvěr, minimálně 2 roky před předložením žádosti o pojištění úvěru

[1] bezproblémovou kreditní historií se rozumí, že Subjekt (nemá záznam v registru úvěrů o zpožděných splátkách (jistiny i příslušenství) po dobu minimálně posledních 5 let. V ČR se jedná o Centrální registr úvěrů vedený ČNB (pro právnické osoby, které mají úvěry u bank či poboček zahraničních bank působících na území ČR), v zahraničí se jedná o obdobný registr.

[2] tj. banka – s výjimkou banky se sídlem v ČR (dle zákona o bankách), vývozně orientovaný podnik, případně ručitel

• maximum pre-export credit1 amounts 75% of the total export value2 (up to 85% of the total export value for short-tail associated export credit with the maturity of up to 2 years)
• The insurance of pre-export credit may be agreed only in connection with insurance of claims following from export customer's or supplier's credit or in case of sufficient reinsurance of claims following from the export contract, approved in advance by EGAP (e.g. documentary letter of credit)
• for a pre-export credit exceeding CZK 50 mil., assurance of preparedness for export subject production will be examined at cost of insured bank by an independent inspection company determined by the bank. (for a lower credit amount, the inspection by inspection company will take place only in case of EGAP's request)
• The share of value of supplies with the origin in the Czech Republic in the total export value – rules you can find here,
• If the pre-export credit exceeds CZK 50 mil., the purposefulness of drawing credit will be checked at cost of insured bank by an independent inspection company determined by the bank; for lower credit amount, the inspection by inspection company will take place only in case of EGAP's request
• trouble-free credit history3 of Subjects4 participating in the production and export
• The subject4 has existed and executed the activity being the subject of export, minimally for 2 years before submitting the application for insurance of credit for pre-export financing the export production or its activity follows up his legal predecessor's activity, carried out minimally for 2 years before submitting the application for insurance of credit for pre-export financing the export production.