Added value

What do you expect concerning companies’ export financing, what opportunities do you wish to highlight?

CIB Bank’s fixed interest rate EUR or USD denominated loans that are refinanced by EXIM are extremely important for us, since those are granted at one of the most favorable prices of the market. These loans can be taken out by companies that export directly, supply items or goods to exporters or plan to start exporting in the future. This financing alternative can be attractive for companies that have been operating for several years on a reliable basis, that have a successful background on Hungarian or export markets and offer products or services that have been in consistent demand. Regarding Hungary’s export-oriented economy structure and the gradually improving business outlook in Hungary and abroad, we are optimistic that long-term cooperation can be established with many of our current and future partners and we can further develop the already existing relationship. CIB Bank, which is a market leader in corporate lending,  pays special attention not only to general corporate finance, but also to providing excellent solutions in the areas of export and trade financing, which require special knowledge, to companies that have a business model to be maintained in the long run.

What do clients expect, how can they use the emerging opportunities?

 We provide tangible help for companies that are already present in the export markets, but they see points of development in relation to banking solutions such as the loan – with fixed rate throughout its term – provided by CIB Bank.  If our clients take these financing opportunities, they can get a competitive advantage on the market. In addition, those companies that have not been properly financed so far and thus could not realize their goals may be interested, too. CIB is ready to become a partner to create the most suitable, tailor-made financing scheme for clients – one that also takes into account the specifics of the given industry and market, and incorporates  the owner’s requirements. In addition to financing by loans, CIB Group could create further added value for a company in the area of factoring, leasing, documentary operations or cash management services.

What should companies consider, before they decide to go for the loan?

Prior to the establishment of a new long-term partnership, CIB Bank always gets to know each client thoroughly. This is a mutual process where the enterprise can also get a real idea of ​​what and how we can help. A single-window service model is applied, where each company has their own relationship manager who is not only responsible for ensuring the conditions of a long term trusted partnership, but will also devote special attention to the involvement of the highest skilled banking experts of a special field, when necessary. It well suits this model that our bank has established a trade finance knowledge center with an extensive international network of contacts. This center is able – in closed, tightly monitored construction – to even finance companies that would not get funding in the framework of classical corporate financing.

How does export financing and especially the new financing programs contribute to Hungary’ s economy?

CIB receives mainly EUR-denominated financing through EXIM’s Export Promoting Credit Program, which can be offered to both SMEs and large corporations serving as an excellent supplement of the National Bank of Hungary (MNB) loans in HUF that are especially meant for SMEs. Besides the availability of preferential and fixed rate financing, risks can also be reduced by taking out an EXIM guarantee or insurance, which may lead to the reduction of our capital reserve liability in certain cases. My experience shows that companies exporting directly or indirectly usually have a diverse scope of clients and may earn superior profits by being part of the global supply chain and providing higher added value meaning that they are less exposed to the rapid changes of the market environment.