Export Finance Facilitation Project

closed

Closed

The main objective of the Export Finance Facilitation Project is to support sustainable, economic growth, by facilitating trade transactions associated with productive activity in Yugoslavia. Through the creation of the Serbia and Montenegro Export Credit Agency (SMECA), the project will support import/export activities, as per the following project components: 1) The Political Risk Insurance Facility will be implemented in partnership with the private sector insurance industry, to set insurance policies covering certain non-commercial risks to be issued to foreigners with financial exposure in Yugoslavia. Applications for insurance policies will be submitted to SMECA for processing; private insurers will have the right to access funds in trust to pay valid claims; while, the leveraging of funds in the trust account, will allow the facility to cover larger volumes of transactions. 2) A working capital facility will provide working capital to Yugoslav exporting enterprises, by providing loans, or guaranteeing loans provided by banks; and, as possible, loans will be tied to specific export orders, secured and liquidated by the proceeds of those export orders, assigned under legally valid, and binding assignments. 3) The Export Performance Insurance Facility will support contract bonds, or guarantees, such as guarantees covering tenders, advance payments, and performance obligations by exporters. The facility will also be adapted to cover the risk of a factoring or discounting agency, unable to collect export receivables on due dates due to failure by a Yugoslav exporter to perform its obligations. 4) The Credit Insurance Facility will include both an export, and an import credit insurance component. 5) The medium term import credit insurance/guarantees will permit SMECA to support the acquisition of machinery for production of export goods, under payment terms not to exceed five years. 6) Technical assistance will be provided for SMECA, to develop the resources and skills necessary in the provision of quality credit reports on the country's enterprises and banks, and for its entering into partnership with international credit information corporations.

FY17 - Industry, Trade and Services

World Bank Group

Project

Commercial, Government