What is ECA Credit?

ECA is an abbreviation formed by initials of the word "EXPORT CREDIT AGENCY" and, in an effort to encourage exports of investment goods of that country origin, the ECA organization of each country provides medium/long-term loan guarantees/insurance in favor of exporters/financing banks against various risks (political, commercial, etc.) which commercial banks are unwilling or unable to directly assume. Such loans provided under the guarantee/insurance of an ECA are called “ECA CREDIT”.

With these credits obtained from oversea Export Credit Agencies and insuring against the importer’s country risk, our importers are provided with the opportunity to make import purchases against a deferred payment. Country credits are convenient for our clients needing medium and long-term funds in importing investment goods. Tenors of these credits, which you can use against oversea letters of guarantee issued by Türkiye Finans, range from 2 to 5 years. In this type of credits the exporter receives the price in cash from the intermediary bank while the borrowing project owner makes deferred payment.

Credit Amount

According to the OECD rules, maximum 85% of the commercial contract amount is financed. 15% of the commercial contract amount is to be paid in advance to the exporter out of own funds of the importer.

Repayment

Country credits are repaid in equal principal amounts, together with charges and commissions for the corresponding period, at consecutive semiannual periods. The term starts with the shipment date or when the equipment is installed. For example, a country credit with a tenor of 5 years is repaid by 10 installments at each semiannual period as from the date shipment is made/equipment is installed.

Leading Export Credit Agencies

Name of Country	Export Credit Agency	Name of Country	Export Credit Agency
Germany	EULER HERMES	Spain	CESCE
Australia	EFIC	Sweden	EKN
Austria	OEKB	Switzerland	ERG
Belgium	OND	Italy	SACE
China	CHINA EXIM	Japan	JBIC
Denamark	EKF	Japan	NEXI
Finland	FINNVERA	Canada	EDC
France	COFACE	Norway	GIEK
South Korean	KEXIMBANK	Portugal	COSEC
Netherland	NCM	Taiwan	TEBC
England	ECGD	Hong Kong	HKEC

Parties of Country Credits

• Export Credit Agency (ECA)
• Importer (Buyer)
• Exporter (Seller)
• Importer’s Bank (Guarantor)
• Exporter’s Bank (Lender)

Advantages

Main advantages ECA Credits have for the exporter:

• Increased competitiveness against exporters from other countries
• Guarantee for collection of the price of the goods
• Opportunity to find new markets

Main advantages ECA Credits have for the importer:

• Medium/long-term financing
• Low-cost borrowing
• Ease of cash flow planning

Just visit our nearest branch to effect your country credit (ECA Credit) transactions with the goodwill and assurance of Türkiye Finans.