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Foreign Currency Lines of Credit

Importing raw material or capital goods?

With EXIM Bank it is easy to do business with any country in the world.

If you are a Jamaican business operator, involved in export trade, manufacturing, agri-business, mining and tourism, or are part of the Jamaican Productive Sector, you can access international (foreign currency) lines of credit from EXIM Bank. With this competitively priced Financing facility you can afford to import the raw material and capital equipment that you need to grow and expand your business.

How does it work?
We understand that you need to move quickly so approval is a hassle-free process.  Simply make a formal request in writing to EXIM Bank, expressing your interest in accessing our foreign currency lines of credit.  Your letter should state the amount of foreign currency you wish to borrow, supported by a copy of your pro-forma invoice.  Loans can be made by Letters of Credit, Bank Draft or via direct wire transfer.

In the case of a Letter of Credit, you will need to submit a completed Letter of Credit Application Form along with a bank guarantee or other negotiable instrument to secure the loan amount.  Once approved, a Letter of Credit will be issued in favour of your foreign supplier, who will then be instructed to ship the goods and send the shipping documents to the EXIM Bank.  The supplier will be paid immediately once the goods have been shipped and the shipping documents have been received by EXIM Bank in accordance with the terms of the Letter of Credit.

For loans issued via wire transfer or bank draft, instead of an application form, you are required to complete a Funds Transfer Form and an Indemnity Form.  Similar to a Letter of Credit, a bank guarantee or other negotiable instrument will be required to secure the loan amount.

Credit Period
You may access loans for a period of up to 180 days. In exceptional circumstances however, you may be able to obtain financing for up to 360 days.
Interest Rate

Interest charges are determined by the particular line of credit being used.  Generally, the rates are based on the US Floating Prime or the 6 month LIBOR, plus a service charge. Applicants are also required to make a onetime pre-paid interest payment of 1.0% prorated for the period of the loan.

Documents Required
• A pro-forma invoice from the foreign supplier
• Completed Application Form.
• An indemnity form is required (if payment is by wire transfer or bankdraft)
• A bank guarantee or negotiable instruments from an EXIM Bank Approved Financial Intermediary