ECA-cover – it is an instrument of states to support their local enterprises in their efforts to open difficult markets and expand traditional markets in unfavorable times. By taking out state guarantees, exporters and banks protect themselves from the country and buyer risks involved in export transactions.
For each export transaction there is an adequate type of cover which takes into account the specific needs of the respective transaction. Before submitting an application for an export guarantee, companies are therefore advised to gather information as to what type of policy is the most suitable cover solution for the export contract in question, and what risks should be covered.
The types of cover available are as manifold as the export transactions themselves.
The application for an export cover should be made wherever possible for the export contract has been finally concluded.
The analysis of project´s eligibility for cover within the scope of a standardized procedure includes social, ecological and developmental aspects.
Opportunities for Mongolia
There are in general a wide range of financing schemes and provider for export financing.
Concerning the evaluation of the country risk of Mongolia – country risk category 6 since July 4, 2014 – export financing will be possible mostly based on ECA cover.
For short term cover are no formal restrictions.
For medium/long-term cover facilities are available on a case-by-case basis. In addition, cover is available for project financed and other structured finance deals, where necessary based on countertrade transactions.
If the buyer´s creditworthiness inadequate, bank security is required.
Our services for obtaining ECA-covered financing
- Business plan
- Optimal financing scheme
- Documents for applying for ECA-covered financing
- Negotiations with financial institutions and Export Credit Agencies
- Fulfillment of requirements from financial institutions and Export Credit Agencies