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MEDIUM AND LONG-TERM EXPORT CREDIT
Supplierā€™s Credit
INTRODUCTION
Medium and Long- term Export Credit is
one of the financing programs that The
Export-Import Bank of the Republic of
China (Eximbank) provides to assist
ROCā€™s exporter extending supplierā€™s
credit to foreign buyer in obtaining
medium and long-term loans for the
purchase of machinery, equipment and
capital goods from Taiwan.
Under the program, the exporter, who
serves as the applicant, may get funds
amounting to 85% of the contract value
directly from Eximbank after delivery of
goods. And you, the importer, will be
granted an installment facility based on
competitive interest rate, only if you
make 15% of down payment before shipment
and provide guarantee for repayment
issued by the bank acceptable to
Eximbank.
Aiming at creating a win-win situation
for both you and your supplier, this
program is tailor-made especially for
you. So, do not hesitate to have your
supplier contact us and make the best
use of this program.
BASIC ELEMENTS OF
MEDIUM AND LONG-TERM EXPORT CREDIT
Eligible Products:
1.
Turn-key Plant, Full-line
Equipment and Single Machine
2.
Precision Metal Products
3.
Transportation Equipment
4.
Computer Peripherals Equipment,
Software, Semiconductor Industry
Products
5.
Telecommunication Electronic
Products
6.
Precision Equipment
7.
Advanced Electronic Products
8.
Office Equipment
9.
Medical Equipment
10.Environment Protection Equipment
11.Electric Equipment, Electric Wire &
Cable
12.Other capital goods, industrial
products, accessories and technical
services (subject to Eximbankā€™s
approval)
Currency:
NT dollar, US dollar or other foreign
currency acceptable to Eximbank.
Cash Payment:
At least 15% of the contract value must
be paid by foreign buyer as down payment
on or before the shipment.
Percentage of
Financing:
The percentage of financing shall not
exceed 85% of the
contract value for the eligible products
with R.O.C. content more than 50%, and
for those with R.O.C. content less than
50% but more than 40%, the financing
shall not exceed 70% of the contract
value.
Interest Rate:
Interest rate is fixed as offered by
Eximbank.
Tenor:
Tenor of financing shall not exceed 10
years from the date of shipment for
Turn-key Plant, Full-line Equipment,
Single Machine or other capital goods.
Other products shall be granted not
exceeding 3 years of tenor. However,
when the relevant equipment and
accessories are sold as a package deal
with Turn-key Plant, Full-line Equipment
or Single machine, the tenor shall be
the same as the latter.
Repayment:
Repayment of principal is scheduled in
approximately equal semi-annual
installments commencing six months after
shipment. Grace period may be granted
upon applicantā€™s request.
Guarantee:
1.
Bankā€™s accepted draft on Deferred
payment L/C ,or Standby L/C, or Letter
of Guarantee issued by the bank
acceptable to Eximbank
2.
Other forms of guarantee approved
by Eximbank
EXAMPLE:
Suppose a Thailand buyer wants to buy
Taiwan machine, the contract value is
US$160,000, The buyer canā€™t pay the
money at one time and wants to pay it
semi-anuallyļ¼š
The buyer has to pay exporter 15% of
contract value as down payment:
US$160,000 x 15% = 24,000
The medium and long-term export loan
amount:
US$160,000 x 85% = 136,000
Suppose the loan period is 3 years in 6
installments, and the interest rate is
6%:
Repayment Scheduleļ¼š
Period Repayment date
Principal Interest
Total
____________________________________________________________________
1 6 months after B/L date
US$22,666.00 US$4,080.00 US$26,746.00
2 12 months after B/L date
22,666.00 3,400.02 26,066.02
3 18 months after B/L date
22,666.00 2,720.04 25,386.04
4 24 months after B/L date
22,666.00 2,040.06 24,706.06
5 30 months after B/L date
22,666.00 1,360.08 24,026.08
6 36 months after B/L date
22,670.00 680.10 23,350.10
____________________________________________________________________
Total
136,000.00
14,280.30 150,280.30
============================================================
Stand-by L/C amount will be
136,000+4,080.00+3,400.02=143,480.02 |
