There are no formal restrictions on cover.
Cover facilities are available for smaller transactions, in particular foreign exchange-generating projects of private buyers.
Cover facilities are available for transactions with public buyers provided that they are established as private sector organizations and operate without recourse to public funds. Transactions with other public buyers may be covered following a careful examination on a case-by-case basis.
In addition, cover is available for project finance and other structured finance deals, where necessary based on countertrade transactions.
If the foreign buyer’s creditworthiness is inadequate, bank security is required. For transactions with public buyers a guarantee from the Ministry of Finance is required.
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).