Export Credit / Import Finance
Loans/guarantees assisting export or import transactions.
Detailed Description
Export Credit / Import Finance
What is the main purpose of export credit and import finance?
The main purpose is to promote international trade by reducing financial barriers for businesses engaging in cross-border transactions.
What are some types of export credit?
Types include direct loans, export credit insurance, guarantees, buyer's credit, and supplier's credit.
What role do export credit agencies play?
Export credit agencies provide financing and insurance to domestic exporters to promote international trade.
What risks are associated with export credit and import finance?
Risks include credit risk, political risk, currency risk, regulatory risks, and fraud risks.
What is a letter of credit?
A letter of credit is a financial instrument issued by a bank guaranteeing payment to the exporter once certain conditions are met.