Going abroad is practically indispensable without export financing, and in Hungary this activity is provided by the following two institutions:
The National Foreign Trade Strategy; Hungarian Export Promotion Agency’s (HEPA) export stimulation, Hungarian Investment Promotion Agency’s (HIPA) capital flows, Magyar Export-import Bank Zrt. (hereinafter referred to as Eximbank), and the financing of the Hungarian Export Credit Insurance Company Zrt. (hereinafter referred to as MEHIB) provides a viable solution for Hungarian companies to access international markets. On the subject of succession, there is an incentive for HIPA to invest in Hungary and the cohesive force of HIPA in the cooperation between foreign firms and domestic firms. It is legitimate to ask how an investment agency contributes to the promotion of a country's exports when its activities are the reverse of those of the HEPA. The emergence and productive capacity of international companies is a major boost to the domestic economy; it creates new jobs and work culture, and the benefits of this are new technologies, management theories and know-how. Hungarian companies participate in these production and supply processes as exporters and suppliers, which in both cases means learning and mastering international quality systems.
EXIM - Eximbank - export credit financing
Eximbank provides refinancing to Hungarian exporters and their suppliers, both directly and indirectly through the domestic credit system, by means of export investment and pre-financing loans to support the export activities of enterprises.
Financing can take the form of:
Eximbank provides a fixed-rate refinancing credit programme, the Export Stimulus Loan Programme (hereinafter referred to as 'EHP'), which can be used in euro, US dollars or, upon request, in forint.
After the export activity is completed, Eximbank provides post-export financing facilities to exporters. It enables the domestic entrepreneur to provide deferred payment terms to his buyer while receiving the consideration immediately after completion.
Export post-financing facilities:
MEHIB's insurance portfolio provides cover for short, medium and long term export transactions, primarily to mitigate international trade and economic policy risks. Short-term insurance provides cover against trade risks such as default and insolvency, based on the principle of full-trade insurance. It is important to underline here that short-term insurance can only cover exports of products with a Hungarian certificate of origin. The medium and long-term cover can be complemented by variable solutions to promote the export of domestic goods and services. The insurance expands the exporter's opportunities for expansion by opening up markets where entry would previously have been risky.
Insurance for short-term transactions:
Buyer credit insurance;
EXIM's range of lending, underwriting and insurance products helps to safeguard jobs, increase employment, expand the product range of businesses and thus expand the export capacity available to them. Its resources can be deployed right from product manufacture, through production, to sales and beyond. It is organised globally by the OECD and governed by the EU framework.