New NZECO Products Now Available
4 Sep 2008
The New Zealand Export Credit Office (NZECO) has signed with the first banks to offer growing exporters two new bank led guarantee products – a general contract bond guarantee and a short-term working capital guarantee. .
The general contract bond guarantee is targeted at exporters who are required to provide a range of bonds by overseas buyers, where banks can’t provide these because the exporter has reached their bank credit limits. The exporter, via their bank then apply to NZECO to guarantee the issuance of bonds by the bank.
The NZECO short-term working capital guarantee is aimed at exporters who have growth opportunities and require further working capital yet have reached their bank credit limits. This new product allows banks to lend additional funds to qualifying export customers with no additional security required from the customers. NZECO provides a guarantee to the bank, enabling the company’s bank to lend up to 20% more. The banks select eligible clients and apply to NZECO to guarantee the extended facilities.
NZECO have established an additional $100m facility for these new products. The products enhance and broaden the guarantee product range available to exporters.
For further information: Contract Bond Guarantee and Short-term Working Capital Guarantee.
To register your interest in utilising these products please contact NZECO.