Purchase of export receivables (insured, non-recourse)
A purchase of an insured export receivable payable in the future without recourse means a purchase (assignment) of a receivable from an export contract before its maturity with insurance against risk of non-payment due to territorial (political) risks or commercial risks not insurable in the market. Such a purchase is made without recourse against the exporter selling the receivable.
The assigned receivables have to be insured by the EGAP insurance product of the type Bf or Cf with the purchasing bank being the insured party or by a similar product of another export insurance company. The credit risk is transferred to the insurer in the extent of the insurance (for example in case of the EGAP insurance Bf or Cf in the extent of 90% of the export value) while the exporter provides security for the remaining uninsured part of the export contract value representing the participation of the insured party (i.e. the purchasing bank). Usually this is done by way of pledging an exporter's deposit on a deposit account held with Exportní Banka.
According to the valid Act No. 58/1995 the insurance at EGAP is not a condition for provision of ČEB financing any more, thus the insurance may be agreed with another insurance company provided that an appropriate insurance product and sufficient security are used.
Assigned receivables have to be connected with export of goods or services exclusively by the Czech companies. Additionally, the exporter must meet his obligations to prove the purpose of financing - he presents an export contract to prove the export, the assignment of the receivable is then performed based on presented export invoice accepted (signed) by the importer, document confirming the realization of the export of goods/services (i.e. in case of goods - a transportation document and in case of services - a hand over protocol or another document confirming the realization of the service supply) or any other documents specified by Exportní Banka. The forfaiting agreement can thus be made before or after the export receivable comes into existence. The purchase itself always happens after the receivable has come into existence.
Financing insured export receivables by forfaiting has the following benefits for an exporter:
- by assignment the exporter removes the receivable from his balance-sheet, he improves his liquidity and clears the credit limit with his bank,
- in case of EGAP insurance, the exporter gets rid of all risks of his export operation within the extent of the insurance coverage (90% of the export value),
- the receivable is purchased with a fixed discount rate specified beforehand.
- Receivables have to be nominated in major currencies or CZK
- Minimum length of residual maturity period of the assigned receivable is 90 days, maximum 5 years
- Minimum amount of the assigned receivable lies in the region of CZK 10 mio or equivalent in other currencies, taking into account the other parameters of the transaction
- The export receivable has got a simple repayment schedule - from bullet repayment up to 4 instalments at maximum
- The amount of provided financing - up to 100% of value of the export contract
- The interest rate - a fixed rate derived from the reference rate of LIBOR, EURIBOR etc. the updated value of which together with margin serves for calculating the discount
- The resulting discounted value of the assigned receivable may be additionally decreased by
General Business Terms and Conditions – „FP“ for purchase of receivables before maturity (insured, non-recourse)
EGAP insurance product - "Bf" or EGAP insurance product - "Cf" or similar product of another export insurance company, however ČEB has always to be the insured party.
Contact persons at CEB:
Ing. František Nepraš
Senior Credit Manager
Tel.: +420 222 843 265
Fax: +420 224 237 788
List of fees for provided services
Conditions of combating bribery