Import Financing

Definition:

Loan given to the importer to provide liquidity for buying with sight payment to the exporter. Each loan must be related to one specific import transaction and the term of the financing can vary depending on the type of products imported and the requirements of the importer.

Advantages:

	Obtain liquidity to pay for imports.
	The importer can receive better conditions for the purchase based on sight payment.
	Citibank® can offer the structure, currency and terms that the business or transaction requires. Depending on the case, it is possible to create a "tailor made" structure.

Costs:

Is usually expressed as a spread over a base rate (Libor, Prime).

Import Financing with Export Credit Agencies

Definition:

Medium or long term import financing for capital goods. The Export Credit Agencies are export-promoting agencies from the exporter’s country (run by the government) that cover political and in some cases, also commercial risk, of the importer, allowing Citibank^® to offer financing under better conditions.

Advantages:

	The importer can get financing terms according to the nature of the goods purchased buying, with adequate costs.
	Citibank® works with the main Export Credit Agencies around the world.
	In well-ranked companies, it is also possible to get commercial coverage (comprehensive: political & commercial risk), so the credit line with Citibank® would not be used, except for the minimum part not covered by the Export Credit Agencies.

Costs:

	Rate: usually based on libor.
	Structuring fee: based on the deal to be arranged with the Export Credit Agencies.
	Commitment fee: collected by the Export Credit Agencies on the amounts committed but not already disbursed.
	Exposure fee: collected by the Export Credit Agencies based on the sovereign risk they are assuming.

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