Export financing is carried out through Exporter Financing Programs.:

  • Direct financing,
  • Co-financing with the Exporter’s commercial bank,
  • Loan refinancing through the Exporter’s commercial bank.

DIRECT SHORT TERM FINANCING OF THE EXPORTER

AOFI grants short term loans to export companies that in the past year had export in excess of EUR300,000.00 under the following conditions:

  • Dinar equivalent value of an amount ranging from EUR 30,000.00 to EUR 2,000,000.00;
  • Repayment period from 6 months to one year;
  • Interest rate:
    • 3 % annually (for export value over EUR 10 million);
    • 4 % annually (for export value EUR from 5 to 10 million);
    • 5 % annually (for export value up to EUR 5 million);

Single fee for application processing: 0.7 % of the total loan amount.

General Mandatory Requirements

  • Concluded contract on foreign trade deal with a foreign buyer;
  • Export in the value of not less than EUR300,000.00 realized in the past year or other adequate proportional amount realized in the current year up to the moment of application submission and possession of the export deal contract having the value of not less than EUR300,000.00 in the current year;
  • Positive net result of the business operations in the foregoing year;
  • Participation of goods of domestic origin with no less than 51% of the value of goods which are the subject matter of export and financing.

Special Mandatory Requirements

  • Positive evaluation of the Borrowers financial standing;
  • Positive evaluation of the export project profitability;
  • Positive evaluation of the quality – safety of the security instruments.

Additional Non-mandatory Requirements

  • Achievement of positive net export effects;
  • Status of predominantly exporting company.

If in addition to the general and special mandatory requirements the Exporter should fulfill also the additional non-mandatory requirements, the Exporter may be granted more favorable financing terms and conditions by AOFI.

Loan approval procedure:

  • The Exporters submit request for loan approval and fill out an application form. Enclosed with the filled out form they have to submit the necessary documentation (list of documents is specified on the last page of the application form);
  • Qualified AOFI specialists analyze the submitted documentation, have interviews with the applicant, visit the applicant’s company, and on the basis of the collected data and supplied documents prepare a proposal for the Executive Board;
  • The Executive Board passes decision on approval or rejection of the particular loan arrangement and terms and conditions under which the loan shall be granted.

After the loan is granted, the contract with the client is signed, collateral for the regular loan repayment are established followed by loan disbursement.

CO-FINANCING WITH THE CLIENT’S COMMERCIAL BANK

In addition to direct financing, AOFI provides also co-financing in cooperation with the Exporter’s Commercial Bank. AOFI provides the Exporter, under the applicable condition for the exporter category to which this particular company belongs, with a portion of the funds, subject to Commercial Bank financing the other portion of the requested loan under the same terms contracted with AOFI (interest rate and all costs up to maximum 10% annually).

REFINANCING THROUGH THE CLIENT’S COMMERCIAL BANK

AOFI is placing funds to Commercial Banks with applicable interest rate for particular Exporters so that Commercial Banks, by using those funds, charge the interest rate for the Exporters up to maximum 10% annually. The Banks may than by linked arrangements on this basis (refinancing with co-financing) place to the Exporters also a portion of own available funds subject to interest rate and all costs being limited to maximum 10% annually.