Cover facilities are available for transactions with credit periods of up to 90 days and contract values of up to EUR 250,000 if the foreign buyer is an affiliated company or a company which belongs to an international group the creditworthiness of which is beyond doubt or if sufficient information material on the debtor is available which, subject to the application of strict criteria, justifies the granting of cover without collateral.
Under wholeturnover policies cover will be automatically suspended for future deliveries if payment is not received eight weeks after the agreed due date at the latest.
As a rule, there are no cover facilities; smaller, foreign exchange-generating transactions with private buyers can be submitted for an examination.
In addition, cover is available for project finance and other structured finance deals, where necessary based on countertrade transactions.
For short-term transactions collateral is not normally required.
For medium and long-term transactions bank security is required if the foreign buyer’s creditworthiness is inadequate.
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).
The most important GTAI country information on Africa can be found at a glance on the Africa Business Guide (German version, www.africa-business-guide.de).
You can find more detailed information on the G20 initiative „Compact with Africa“ (www.compactwithafrica.org).