Letter of credit discounting
Covering of costs:
- Pre-export financing - up to 80% of the letter of credit value (documentary irrevocable letter of credit issued by a bank acceptable to BDB, endorsed by BDB and payable to BDB)
- Post-export (deferred payment) - up to 90% of the letter of credit value.
Financing amount:
- No limit if for the previous 2 completed financial years more than 80% of the borrower's income is from exports
- No limit for financing individual export transactions (after thorough analysis of the borrower and its counterparties)
- Up to BGN 5 million total exposure at the level of a group of related parties in all other cases
Total duration: up to 60 months. Financing is provided for the time needed for the borrower to produce and deliver the goods or services and receive payment for them (including in the case of deferred payment).
Drawing period: according to the specifics of the letter of credit
