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Application and Approval Process
Planning of the project
Applicants interested in an Untied Loan Guarantee should contact PwC already during the planning and negotiation phase of the project. Issues such as the project's positive contribution to the natural resources supply of the Federal Republic of Germany and other requirements are key issues and should be discussed in advance.
Enquiry
In the early phase of a project the Federal Government is willing to give a first indication about the in principle eligibility of a loan to be covered by an Untied Loan Guarantee. In addition to information about the debtor as well as the terms and conditions of the loan (amount and tenor) the enquiry should contain information about the project (project structuring, investment volume, stakeholders) and its financing structure (including the security concept). In the case of natural resources projects the enquiry should state the expected contribution of the project to an increase of the resources supply of the Federal Republic of Germany (possible German offtakers/envisaged conditions of the offtake contract). Such an enquiry can be informal and is free of charge for the applicant.
Application
The application should contain detailed information in terms of economic, technical and legal arrangements of the corresponding project as well as its environmental and social impacts. An overview of the documents that are necessary for the processing of an application can be found here. In some cases PwC will ask for additional documents and information, which might be needed for processing the application.
The processing of the application by PwC includes analysing the legal, economic and financial foundations of the project. Furthermore environmental and socio-economic impacts of the project will be assessed and risks associated with the project will be examined.
After the assessment PwC creates a statement, which provides the basis for the IMC's decision. PwC will inform the Policyholder about the final decision of the IMC. Following a positive decision a Guarantee Declaration will be handed out.
Execution
During the guarantee period of the Untied Loan Guarantee, PwC is responsible for adjusting the Untied Loan Guarantee due to changes of project details as well as informing the Policyholder about the decision of the IMC.
Event of loss
The Federal Republic of Germany supports the Policyholder with loss prevention and loss mitigation. PwC accepts and processes notifications of risk-increasing circumstances and claims for indemnification.
Debt rescheduling
If during the guarantee period of the Untied Loan Guarantee, agreements for the regulation of foreign debt are made between the Federal Government and the Government of the host country, the Federal Government may incorporate repayment claims under the Untied Loan Guarantee. Regarding the repayment claims that are covered by Untied Loan Guarantees the debtor is subject to those arrangements.