Instruments

State-to-State loans can be combined with a commercial credit to maximize the contract amount. The distribution between state loan and commercial credit varies each year, depending on certain parameters. For example, in 2024, the distribution will be 72% LSS and 28% commercial credit.

The credit period of the state loan is 40 years, including a grace period of 20 years, to achieve a minimum grant element of 35%.

After the payment of the advance with the LSS, the other invoices are paid pro rata to the percentage on the State loan and the commercial credit.

Because the beneficiary country will eventually have to repay the State Loan, Finexpo must also receive a priority letter from the country in question. This letter must confirm that the project is a priority for the country in question and must be based on the levels of government of the developing country, such as the president, the Prime Minister, or the Minister of Finance.
 

Eligibility criteria for a Mixes Credit

To grant a tied Mixed Credit:

• the project must be a priority for the beneficiary country;
• the project may not be commercially viable;
• the project must be developmentally relevant;
• there must be competition;
• the project must have sufficient Belgian interest (40%);
• the maximum amount of the state loan is EUR 10 million;
• the maximum contract amount is 14 million euros.
   

Procedure

For projects for which state loans are requested, the Belgian companies concerned must prepare a document on the basis of a questionnaire. This questionnaire ensures that the projects can be assessed for their economic and development relevance.
 

Steps of the procedure

• The dossier must be submitted to Finexpo, accompanied by a copy of the Credendo application form.
• After analysis of the project, it is submitted to the Finexpo Committee.
• If the Committee's opinion is positive, the dossier is submitted successively to the Finance Inspectorate and to the Council of Ministers.
• If the dossier is approved by the Council of Ministers, Finexpo gives a promise to intervene.
• The commercial contract may not be signed until the Council of Ministers has approved the dossier.
• Once the contract and the credit agreement have been signed, a ministerial decree is issued granting stabilisation to the bank.

At each half-yearly repayment, and also during the execution period, the bank submits a document indicating the interest rate at which it has had to refinance itself on the euro or foreign exchange market. If the refinancing rate plus the bank margin is higher than the CIRR, Finexpo will pay the difference to the bank. If it is lower, the bank pays the difference to the State.