Danske Bank can assist with the financing of capital equipment and project-related goods and services. We normally require that the importer's bank or another acceptable bank guarantees the importer's payment obligation.
To provide financing to exporters and make financing as inexpensive as possible, Danske Bank will often take out guarantees with an export credit agency such as the Export Credit Guarantee Department. The role of these organisations is to support exports by issuing guarantees for export financing at competitive prices.
The issuance of such guarantees is subject to certain general conditions set forth by the
OECD. The following are the most important conditions:
- The sale must involve capital equipment and project-related goods and services.
- The importer must pay at least 15% of the contract amount in advance.
- Whilst 85% of the contract amount may be export-financed, the guarantee may also cover certain expenses for establishing the financing, such as the guarantee premium paid to an export credit agency.
- The maximum period between instalments is six months.
- The portion of the export from the exporter’s home country must be at least 20%-50%, depending on the importer’s country and the export credit agency involved.
- The local part of the contract must be covered by the down payment.