MIDF: Export and Trade Finance

Export Finance

We represents Italian and international exporters (in packaging export finance) ; importers and governments in developing countries and countries in transition in connection with the structuring, arrangement and sourcing of export credits for goods and services

Export credit agencies are thus involved to provide guarantees to the supplier’s bank which then makes fund available for the equipment to be supplied (Export Credit Agencies – ECAs - are organs put in place, especially, by the major exporting countries to protect exporters and participating banks from inherent risks

Such arrangements, built on insurance concept, provides connection between buyers and suppliers of internationally traded goods and services and the banking system that provides’ funds necessary to support such trade.

Most ECAs are government owned or are backed by their respective governments. ECAs are not identical, each having evolved its own way and operating in its own political and commercial environment. Structure of economy, nature of its major companies and of their markets, the depth of its banking system all these influence the type of facilities available to exporters and how they function).

Refinancing, with or without recourse, credit evidenced by promissory notes, bills of exchange or letters of credit. Such credit instruments are discounted with specialized financial institution. A.C. Giacoma organizes, as required under specific situation, tax oriented leases and non tax oriented leases both of which constitute an excellent source of on-balance and off-balance sheet financing.

A general-purpose credit line is arranged and provided, this allows the borrower to finance various contracts from a given country, without previous assignment of supply contract in doing these our primary objective is to quickly and professionally ensure easy availability of financing to our clients.

The following services are generally carried out on behalf of exporter -clients:

Insurance: Commercial and Political risk, commonly assigned to a syndicate of banks, that will fund the transaction, However most systems will provide that the supplier and/or the banks should share a proportion of the risk, largely to give the supplier and/or the banks an interest in the safety of his own export business, and thus an incentive to screen for himself the creditworthiness of his own customer.

Access to export subsidy: given that in many countries Governments provide subsidy on the interest rate (fixed rate financing at Consensus rate) and some other cost. The following are the benefits of using export credit to finance project, infrastructure, capital goods

  • Medium term credit, which is not directly obtainable from the market.
  • Fixed interest rate, below the market rate for the duration of the credit, with contribution from the exporter country.
  • Multicurrency credit, improving the ability of borrower to manage own foreign exchange treasury
  • Standard documentation
  • Accessible to all operators even those from high risk countries