Cover Policy – Export Credit Guarantees
There are no formal restrictions on cover.
Cover facilities are available on a case-by-case basis.
In addition, cover is available for project financed and other structured finance deals, where necessary based on countertrade transactions. A restrictive approach is adopted to cover of financed local costs.
As a rule, bank security or state guarantees are required for short-term transactions with private and public buyers. This applies also to public buyers which are established as private sector organisations. For short-term transactions with private buyers or public buyer which are established as private sector organisations this collateral requirement may be waived if
- the buyer is an affiliated company or
- the buyer belongs to an international group the creditworthiness of which is beyond doubt or
- informative information material on the debtor is available which, subject to the application of strict criteria, justifies the granting of cover without collateral.
As a rule, state guarantees (Ministry of Finance or central bank) are required for medium and long-term transactions with public buyers. This requirement may be waived if the Turkmen government as borrower is authorised to take out a loan by a presidential decree. As a rule, bank security or state guarantees are required for medium and long-term transactions with private buyers and public buyers which are established as private sector organisations.
Country information on commercial practices, business climate, market analyses, law, import procedures, customs duties can be found on the website of Germany Trade & Invest (gtai, https://www.gtai.de).
Cover Policy – Untied Loan Guarantees
There do not exist any restrictive country cover policy decisions for Untied Loan Guarantees. However, when deciding on cover of raw material projects, the Federal Government always takes the current situation in the host country into account. If you have any queries, please do not hesitate to contact our experts.
No responsibility is taken for the correctness of the information provided.