What are the basic conditions for the provision of financing by CEB?

• A suitable export contract
• At least 50% of the total value of the exported goods/services should be of Czech origin (in specific case this minimum may be further reduced)
• Security acceptable for CEB, in particular EGAP insurance of export credit risks, if offered by EGAP, or insurance of export credit risks by another insurance company acceptable for CEB
• No outstanding obligations towards the state
• No bankruptcy proceedings against the applicant under way

What is the security required for the provision of CEB financing?

CEB financing is provided under the condition that a security is arranged for, if no export credit insurance has been concluded with Export Guarantee and Insurance Corporation, a.s. Security is required also in the case when export credit risks are covered by other export credit insurance company than EGAP.

CEB takes advantage of all standard security instruments. The form of security must be acceptable to CEB. CEB’s financing is provided exclusively in connection with Czech exports.

Who are CEB products for?

In a nutshell, an exporter or its foreign customer may receive supported financing. The final recipient may only be an exporter (i.e. a legal entity with registered offices in the Czech Republic or, in exceptional cases, a natural person with permanent residency in the Czech Republic), a foreign customer of a Czech exporter, and also, for some specific type of credit, a manufacturer producing for export or a Czech investor investing abroad. A domestic or foreign bank may operate as the connecting link.

What are the advantages of CEB products?

For short-term financing CEB, as a state institution involved in supporting the export policy, has only a minimal profit margin.

For medium- and long-term financing (incl. very long-term financing) the credits are usually provided at an advantageous CIRR fixed rate set up by the OECD for officially supported export credits.

Are CEB services intended only for large enterprises or can they be used by small and medium-sized enterprises as well?

Even though CEB's typical client is a large enterprise exporting machinery, equipment or investment plant, its products and services are intended for all enterprises in the Czech Republic engaged in export and complying with the specified criteria. CEB financing is not limited to certain segments. In 2008 the small and medium-sized enterprise segment accounts for approx. 4-5% of the total loan portfolio of the Bank.

How is the price of the credit established?

For short-term financing:

• A variable interest rate stipulated on the basis of the LIBOR or EURIBOR reference interest rates for the applicable period and the contract currency, increased by a risk margin depending on the debtor's rating + fees for the credit-related services

For medium- and long-term financing:

• A fixed interest rate of at least CIRR, a guarantee commission, a credit administration fee, a fee for the preparation of the credit agreement and out-of-pocket expenses

• A variable interest rate derived from CIRR (but not lower than CIRR) increased by a credit administration fee, fee for the preparation of credit agreement (for export credits and credits for financing of investments abroad), out-of-pocket expenses.

How long does the administrative work related to the credit usually take?

There is no unequivocal answer to this - almost every CEB client's business case is specific and so it is impossible a priori to stipulate a deadline that could be complied with under all circumstances. If all the necessary materials are submitted on time, relatively simple standard cases are usually completed within two months, but this time can increase with the complexity of the business case in question.

Does CEB provide Anti-Money Laundering and Combating of Terrorism Financing Policy („AML/CFT“)?

Yes, according to the Act No. 253/2008 Coll. on selected measures against legitimisation of proceeds of crime and on the amendment of related legislation.