Banks

Page updated 26 Jan 2011

Given that the New Zealand Export Credit Office (NZECO) does not provide any direct finance to exporters, we aim to work closely with an exporter’s bank or buyer’s financier to help structure a competitive export credit arrangement.

The NZECO’s Buyer Credit, Financing Guarantee, Short-Term Trade Credit Guarantee, General Contract Bond Guarantee, and Short-Term Working Capital Guarantee products are credit products that are commonly and successfully used by other export credit agencies and financial institutions.

The benefits to banks of using NZECO products include enabling a bank to off-lay country and commercial risks when they are at lending limits on a country, buyer or exporter. Additionally the lower weighting for capital adequacy purposes (normally 10%) may also allow for greater capital usage. By working closely with banks at an early stage to structure finance packages, your client may be in a better position to win and finance international contracts.

The NZECO’s role is to complement rather than compete with the products offered by commercial providers. Accordingly, we wish to work with the commercial finance sector to make it easier for New Zealand businesses or their buyers to obtain finance.

Contact the NZECO office if you have queries.