Targeted credit extended to the exporter for performance of an export contract. The credit product is structured with due consideration of export contract specifics and attraction of resources of foreign banks by the Department of trade financing: A.E. Musiyko, ext. 4217; T.S. Alekseyeva, ext. 4569.
Essential conditions of the product
Designated purpose of the credit
Bank customer’s performance of payment obligations under an export contract.
Requirements to the financial standing of the Borrower and security
According to current requirements of Bank of Moscow
Export contract value
Preferably not less than 500.000, — EUR or an equivalent in USD
Granting conditions
Availability of a valid export contract, decision of the authorized body of the Bank to extend the credit. All other credit terms are regulated by internal normative documents and procedures.
Crediting conditions
Kind of the credit product
Credit, credit facility.
Credit period
Up to 2 years depending on the term of the export contract.
The exact period is established depending on the time required to receive export proceeds.
Credit amount
Up to the export contract value.
Credit currency
The credit is granted in basic settlement currencies — USD or EUR.
As a rule the credit is made out in the currency of the contract.
Documentation
- Export contract
- Credit request
- Credit Agreement
- Security agreements.
Credit interest rate
The credit is granted at a rate below the usual crediting rate by using the attracted assets of the foreign bank. The interest rate is floating, based on LIBOR*/EURIBOR** and includes the Bank margin of Bank and fund raising costs.
* LIBOR (London Interbank Offered Rate) means the interbank offered rate for credits in US dollars extended to first-class borrowers in the international capital market.
** EURIBOR (Euro Interbank Offered Rate) means the interbank offered rate for credits in Euro extended to first-class borrowers in the international capital market.
Credit repayment
Payment of interest
According to an agreed schedule, usually monthly. The LIBOR/EURIBOR rate is fixed for each 6 months two days prior to the beginning of each such period.
Repayment of the principal
According to an agreed schedule.
Additional commissions
Financing arrangement fee
0.X% (no more than 0.5%) of the credit amount, charged once. The fee is due and payable within 10 days from the date of signing the Credit Agreement.
Credit facility maintenance fee
0.X% (no more than 0.5%) per annum of the undrawn part of the credit facility from the date of signing the Credit Agreement to the date of opening the Letter of credit. The fee is paid monthly.
