Financial Support for Exports

This supportive framework may be mobilised when a foreign counterparty lacks sufficient liquidity to fund the procurement of Polish consumer goods, finance investments in novel machinery fleets or execute the construction of new production facilities.

Short-term transactions are settled via documentary letters of credit. Conversely, transactions of greater volume and extended duration are financed through a Buyer's Bank Credit Facility. In strict compliance with the OECD Arrangement consensus, the lending institution may finance up to 85% of the aggregate export contract value.

Should an enterprise anticipate liquidity constraints arising from prolonged payment terms, the discounting of a letter of credit represents an optimal solution. Through this facility, the exporter may grant deferred payment terms extending up to two years, while BGK discounts the corresponding receivable immediately following the shipment of commodities or the fulfilment of contractual services. This instrument remains accessible across virtually all sovereign jurisdictions globally.

BGK facilitates corporate advancement by providing structured guarantee instruments, including: bid bonds (tender guarantees), advance payment guarantees, performance bonds, warranty guarantees and payment guarantees.

Furthermore, BGK possesses the capacity to issue payment guarantees backed by counter-guarantees from foreign banking institutions, subject to specific contractual stipulations.

This credit facility is extended directly to foreign importers. Upon the partial or complete execution of the export contract, the Polish exporter receives the proceeds directly from BGK, while the credit account of the importer is concurrently debited. Crucially, the exporter is entirely insulated from the insolvency risk of the importer.

Eligible borrowers within this framework encompass private corporate entities, public sector bodies and sovereign treasuries of the importing nation.

Pursuant to the OECD Arrangement consensus, the bank may finance a maximum threshold of 85% of the export contract value, with the amortisation period extending up to 15 years, contingent upon the specific industry sector and the host country of the importer. Access to this facility carries an additional covenant requiring a minimum of 40% of the goods or services within the export contract to originate from the Republic of Poland. Collateral structures for this financing model typically comprise an insurance policy issued by the Export Credit Insurance Corporation (KUKE) and the fixed assets linked to the international project.

These encompass short-term working capital loans allocated to Polish exporters for the execution of specific export contracts or the general promotion of international sales, alongside long-term investment loans designed to finance corporate projects that actively generate export volumes from Poland.

BGK additionally retains the capacity to execute the refinancing (via the non-recourse purchase of receivables) of trade credits extended to a foreign counterparty by a Polish exporter, provided such credits are insured under a KUKE supplier credit policy.

To execute the divestment of export receivables to BGK successfully, the exporter must fulfil a contract for the export of Polish goods or services executed under deferred trade credit terms, and secure comprehensive coverage for said receivables via a supplier credit insurance policy from KUKE.