There are no formal restrictions on cover.
Cover facilities are available on a case-by-case basis. In addition, cover is available for project finance and other structured finance deals, also based on countertrade transactions.
For transactions with private buyers bank security has to be provided if the foreign buyer's creditworthiness is inadequate.
For short-term transactions with public buyers a guarantee from the Ministry of Finance, the central bank or bank security is required if the buyer's creditworthiness is inadequate.
As a rule, a guarantee from the Ministry of Finance or the central bank is required for medium and long-term transactions with public buyers. For public buyers which are established as private sector organisations the same collateral requirements as for private buyers apply.
The assessment of a bank for acceptance as a guarantor or borrower is carried out case by case on the basis of informative documents and taking into account the risk involved.
Country information on commercial practices, business climate, market analyses, law, import procedures, customs duties can be found on the website of Germany Trade & Invest (gtai, https://www.gtai.de).