L/C Guarantee

Benefits

1. KUKE assumes a large part of the exporter's bank's risk related to short-term financing.
2. KUKE can issue a guarantee for up to 100% of the amount of secured debt due to the bank.
3. Fast–track procedure – guarantees are issued in accordance with bank limits previously specified by KUKE.
4. The guarantee is irrevocable and payable on first demand.

Eligibility criteria

• An L/C Guarantee covers an extensive list of countries (excluding EU Member States, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland and the USA).
• An L/C Guarantee covers losses incurred by a beneficiary of the guarantee as a result of its debtor's failure to settle due payments within the deadline specified in the L/C or the post-financing agreement, if the debtor's non-payment is caused by the materialization of a commercial or political risk.
• The credit granted by the bank for the payment of amounts due resulting from the L/C in favor of the importer's bank must not exceed the period of two years. For agriculture products the maximum repayment term of 540 days is applied (WTO rules).
• Not only Polish exporters, but also their foreign subsidiaries are eligible for L/Cs.

Do you have questions? Please contact us.