Very promising meeting about possible forms of financing different agriculture project in Africa.
The history of BGK dates back to 1924. The Bank’s main tasks included granting long-term loans through issuance of covered, municipal, railway and bank bonds and offering local government loans as well as providing loans to savings institutions and performing all other banking tasks.
Currently, BGK’s main task is to support Poland’s social and economic growth and help Polish entrepreneurs to develop their business.
In their offer they have bunch of financial instruments. Among of them is Buyer’s credit granted through the importer’s bank.
Key benefits for the Importer:
- obtaining medium- and long-term financing for purchase of investment goods and services,
- more favorable terms of credit in comparison to instruments offered by local banks,
- reduction of performance risk – credit disbursements are made against presentation of documents accepted by the Importer,
- possibility of obtaining funding of KUKE insurance premium,
- deferral of contractual payments.
Basic terms:
- Repayment period – depends on the Importer’s country and industry – from 2 up to 12 years.
- The Credit may finance up to 85% of the value of exported goods/services. Not less than 15% of the value of exported goods/services must constitute the Importer’s own share and should be paid directly to the exporter (“Exporter”) in cash as an advance payment, before commencement of contract.
- The Credit is drawn after partial or complete fulfillment of contractual obligations by the Exporter. A disbursement is made to exporter’s account, to debit of the Credit account, against presentation of commercial documents compliant with conditions of the export contract and the Credit agreement by the exporter. Disbursement is effected within 5 banking days from the date of presentation of the documents in BGK.
- The Credit is repaid in equal installments and in equal periods of time, monthly, quarterly or semi-annually. The first installment is payable no later than 6 months from the date of the fulfillment of contract by the Exporter.
Appart of it BGK offers funding for G2G deals to very special condition.
Access to finance is critical for the growth of the agriculture sector. The shift from subsistence to commercial agricultural production requires funds. A&G Agromechanical Industries is proud to announce, that we have direct possibilities to arrange such credit instruments for financing of Polish companies in order to bring their high end technology and execute their foreign investments / foreign acquisitions in Africa.
