Export Finance

Export Finance

Export credits are government financial support, direct financing, guarantees, insurance or interest rate support provided to foreign buyers to assist in the financing of the purchase of goods from national exporters

Export Finance
4 %
Interest Rate
Export Finance
8.21 %
Base Rate
Export Finance
12.21 %
Total Interest Rate

Last Updated Date: January 24, 2022

Nepal Bangladesh Bank Ltd

Export Finance

REQUIRED DOCUMENTS

  • Citizenship certificate
  • PAN Certificate
  • Company Registration Certificate
  • Credit limits sanctioned by the bank.

What Is Export Credit?


An export credit offers trade finance and other services to facilitate domestic companies' international exports. Like other countries, Nepal also provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries. The purpose  is to support the domestic economy and employment by helping companies find overseas markets for their products. It can be government agencies, quasi-governmental agencies or even private organizations including the arms of commercial financial institutions. Export credits are government financial support, direct financing, guarantees, insurance or interest rate support provided to foreign buyers to assist in the financing of the purchase of goods from national exporters. A loan extended to finance a specific purchase of goods or services from within the creditor country. Export credits extended by the supplier of goods such as when the importer of goods and services is allowed to defer payment are known as supplier’s credits; export credits extended by a financial institution, or an export credit agency in the exporting country are known as buyer’s credits.The common products found in trade and export transactions are the following:

  • Import/ Export Letters of credit (L/C)
  • Loans for Import/Export (can be covered with credit insurance products)
  • Performance Guarantees and Standby Letters of Credit
  • Supply Chain Finance (Payables Finance)
  • Some instances of specific Project finance / Commercial finance
  • Products for which an export credit  has provided a state-backed guarantee or insurance to the financing bank
  • Banks’ lending related to public credit risk transfers and political risk mitigation
  • Bank lending in public-supported trade facilitation transactions

In addition, to support companies to export and thrive in a global economy, Export Finance is also a critical part of the development finance and sustainable finance agendas (with Export Finance having some of the highest ratios of sustainability / total transactions in the market. Given the high level of compliance and rules governing the transactions, all steps can be traced from importer to exporter, banks and ECAs, ensuring that transparency, public support interests and international agendas .


 

 


 

 

 

 

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