EXPORT SERIES
Cooperation of banks, export credit agencies and business missions bring opportunities and security to exporters
In a globalised economy, exports are becoming a pillar of growth and a test of a country’s competitiveness. Financial institutions, including export credit agencies, are looking for new ways to support businesses in changing market conditions and geopolitical shifts.
Export to the Balkans
Expanding business abroad is attractive for Slovak companies, especially towards the stable markets of Southern Europe. At the same time, financial and guarantee products are a key tool for overcoming barriers. Croatia and Slovenia present a combination of low risk and a favourable business environment, which makes them interesting destinations in the energy, pharmaceutical and engineering industries. Although the investment environments of Slovenia and Croatia are within the European framework, they are characterised by different structures. “Slovenia offers a stable and mature investment environment, while Croatia brings more dynamic opportunities, especially in the infrastructure and tourism sectors,” says
Structured support
Eximbanka offers various financing structures to exporters. “We can help them in their acquisition activities through an acquisition loan,” explains Tomáš Kuruc, Eximbanka’s Director of Structured Finance . If a Slovak company already operates on a foreign market through its subsidiary, they offer the possibility of providing an investment loan. The purpose of such financing is the renewal or expansion of production capacities or the need for additional capital for further development. Eximbanka assesses each investment project individually, taking into account its sectoral and territorial specifics, but also with an emphasis on its economic benefits. Croatia and Slovenia are among the countries with low territorial risk, which is a prerequisite for favourable financing conditions and long-term sustainability of export activities.
Guarantees and financing
A key element of entering foreign markets is the trust of trading partners. This is often built through bank guarantees and credit lines, which allow Slovak companies to compete in public tenders and implement larger projects. “In practice, we mainly encounter the requirement to issue bank guarantees for tenders (bid bond) and in case of winning a tender there is also a requirement for a performance bank guarantee supplemented by possible pre-export financing,” says Tatiana Harmady, Eximbanka’s director of financing . Guarantees are a prerequisite for the confidence of foreign investors and procuring entities. In these cases, clients do not enter the foreign market directly, but through subsidiaries, which Eximbanka accepts and reflects in its financial products. This approach allows for a flexible response to the requirements of local regulations and risk protection for the company.
Partnerships and cooperation
In an increasingly competitive environment, the importance of linking domestic and foreign financial institutions is becoming apparent. Synergies between them form the basis for large-scale investment projects that transcend national borders. Such partnerships increase the credibility of Slovak exporters and give them access to wider financial resources. “Eximbanka, through its broader portfolio of financial instruments, including joint structures of credit products and export risk insurance, can enter into inter-bank cooperation with other financial institutions such as the Croatian HBOR,” says Tomáš Kuruc.
Source: TREND.sk