Advantages of obtaining financing using foreign credit facilities:
The main advantages of obtaining financing using foreign credit facilities are the following:
- wide range of suppliers and foreign banks;
- terms in which the resources are granted depends on the conditions and the loan amount;
- rather low interest rate;
- flexibility of the repayment schedule;
- possible delay in repayment of the principal amount;
- fast decision-making regarding financing.
Possible financing of foreign trade contracts by means of tied loans attracted under interbank loan agreements
Object of financing:
- delivery of equipment (spare parts to delivered equipment which is being delivered, related works, services);
- delivery of machinery and means of transport;
- infrastructure projects.
In regard to the Russian Federation, the deliveries of raw materials with a deeper degree of processing are also financed (provided that they are classified as high-technology products in accordance with the FEACN (Foreign Economic Activity Commodity Nomenclature) codes.
Requirements to foreign trade contracts:
- advance payment in the amount at least 15% (this requirement is not so strict in regard to the contracts with the residents of the Russian Federation);
- country content in the object of financing – the content of the Exporter’s country should exceed 50% (or more depending on country requirements to the volume of content).
- the object of financing has not crossed the state border of the Republic of Belarus;
Terms of financing: 1 – 7 years, for large-scale projects – up to 10 years.
Currency of financing: US dollars, euro, Russian rubles.
The Scheme of Financing Under Interbank Agreements
Structured and Trade Finance
International Business Department
Tel.: +375 (17) 309 00 07
Selected long-term investment projects carried out in 2013 - 2019
Experience of cooperation with ECAs and Eximbanks