The EIS export loan is intended for financing transactions involving the export of goods produced in Estonia, and the loan is issued to an Estonian exporter. The purpose of the export loan is to provide the foreign buyer with a repayment term of at least two years, and to finance the payment of the credit insurance premium and, if necessary, the production of goods to be sold to the foreign buyer.
The target audience is all exporters.
Benefits
The export loan helps companies find new customers and grow export volumes
For who?
Service is suitable if
- the applicant is sustainable and solvent; and
- the applicant’s equity complies with the requirements of the Commercial Code; and
- the applicant is entered in the Estonian Commercial Register and the required information has been submitted to it; and
- the applicant does not have any unresolved payment arrears and no overdue tax debts; and
- the owners and members of the board of directors of the applicant are reliable and competent; and
- the applicant has experience with similar export projects.
Important conditions
- primary production of agricultural products, fishing and aquaculture, forestry activities
- manufacture, processing and marketing of tobacco (and related products)
- manufacture, processing and marketing of weapons and ammunition
- the loan applicant is owned by a person who is resident in a country or territory that is considered a non-cooperative jurisdiction under § 101 of the Income Tax Act
- The maximum possible amount for financing the credit period of a foreign buyer is 15,000,000 euros per foreign buyer, but not exceeding the insured credit limit.
- For financing the production of export goods, the maximum possible amount is 7,500,000 euros, but not exceeding the insured production risk amount.
- At a minimum, the interest rate is equal to the market interest rate. If it is not possible to determine the market interest rate, the interest rate on the export loan is at least equal to the lower of:
- the reference rate established on the basis of a communication from the European Commission, or
- the Commercial Interest Reference Rate (CIRR) set by the OECD.
- The contract fee is 1% of the loan amount
- The contract amendment fee is 0.2% of the loan balance
- 2–10 years
- The foreign buyer makes payments at least twice per year
1. Insuring the credit and political risk related to the foreign buyer, and designating EIS as a beneficiary in the insurance contract. The insurance cover for credit and political risk must be at least 95% of the balance of the credit granted to the foreign buyer.
2. Assigning the claim arising from the export transaction against the foreign buyer to EIS as of the delivery of the goods to the foreign buyer.
3. Insuring production risk in the case of financing the production of goods sold to an external buyer.
4. Provision of other collateral in favour of EIS, if necessary.
Application process
The exporter submits an application for the export loan and export credit insurance to KredEx Krediidikindlustuse AS. The application must be accompanied by:
- financial forecasts;
- an overview of the company and a description of the transaction;
- (audited) annual report for the ended financial year and an interim report for the current year that is not older than three months.
Good to know
- The precondition for issuing the loan is that the KredEx Krediidikindlustus must insure the credit risk and political risk associated with the foreign buyer, see link to insurance page.
- Find out more about Enterprise Estonia’s services for businesses here.
Service Information and Application Process
Service is suitable if
- the applicant is sustainable and solvent; and
- the applicant’s equity complies with the requirements of the Commercial Code; and
- the applicant is entered in the Estonian Commercial Register and the required information has been submitted to it; and
- the applicant does not have any unresolved payment arrears and no overdue tax debts; and
- the owners and members of the board of directors of the applicant are reliable and competent; and
- the applicant has experience with similar export projects.
- primary production of agricultural products, fishing and aquaculture, forestry activities
- manufacture, processing and marketing of tobacco (and related products)
- manufacture, processing and marketing of weapons and ammunition
- the loan applicant is owned by a person who is resident in a country or territory that is considered a non-cooperative jurisdiction under § 101 of the Income Tax Act
- The maximum possible amount for financing the credit period of a foreign buyer is 15,000,000 euros per foreign buyer, but not exceeding the insured credit limit.
- For financing the production of export goods, the maximum possible amount is 7,500,000 euros, but not exceeding the insured production risk amount.
- At a minimum, the interest rate is equal to the market interest rate. If it is not possible to determine the market interest rate, the interest rate on the export loan is at least equal to the lower of:
- the reference rate established on the basis of a communication from the European Commission, or
- the Commercial Interest Reference Rate (CIRR) set by the OECD.
- The contract fee is 1% of the loan amount
- The contract amendment fee is 0.2% of the loan balance
- 2–10 years
- The foreign buyer makes payments at least twice per year
1. Insuring the credit and political risk related to the foreign buyer, and designating EIS as a beneficiary in the insurance contract. The insurance cover for credit and political risk must be at least 95% of the balance of the credit granted to the foreign buyer.
2. Assigning the claim arising from the export transaction against the foreign buyer to EIS as of the delivery of the goods to the foreign buyer.
3. Insuring production risk in the case of financing the production of goods sold to an external buyer.
4. Provision of other collateral in favour of EIS, if necessary.
The exporter submits an application for the export loan and export credit insurance to KredEx Krediidikindlustuse AS. The application must be accompanied by:
- financial forecasts;
- an overview of the company and a description of the transaction;
- (audited) annual report for the ended financial year and an interim report for the current year that is not older than three months.
- The precondition for issuing the loan is that the KredEx Krediidikindlustus must insure the credit risk and political risk associated with the foreign buyer, see link to insurance page.
- Find out more about Enterprise Estonia’s services for businesses here.