Pre-export Credits

Credit for pre-export financing enables Czech producer or exporter to finance costs connected with realization of deliveries for foreign buyer (importer).

Credit for pre-export financing covers the following costs:

• Purchase of raw material and other components for export production;
• Purchase of material (goods) for export, which is integral part of transaction supporting Czech production
• Personal costs, i.e. wages, social and medical insurance costs; and                               
• Investment costs in connection with acquisition of investment assets for export production.

How it works

Pictogram Legend:

1. Export contract for the delivery of goods and/or services
2. Credit agreement
3. Insurance policy covering credit risks*
4. Credit disbursement upon documents certifying production expenditures
5. Delivery of goods and/or services after production completion
6. Credit repayment either by means of irrevocable letter of credit issued by order of the importer, or by means of export buyer's or supplier's credit

* Pursuant to the amendment of Act No. 58/1995, EGAP insurance is no longer a condition for the provision of supported financing. Depending on ČEB requirements, some other form of security may serve as a substitute for EGAP insurance.

Basic characteristics

EGAP insurance – "F", insured party – ČEB