Interest rate stabilisation procedure

To benefit from interest rate stabilisation, the exporter or his bank must submit an official application to the Finexpo Secretariat. The application form must be completed and submitted before the commercial contract is signed.  The application form is common to Finexpo and the National Del Credere Office (OND).

The application for stabilisation is examined in detail by the Finexpo Committee, giving particular attention to whether the project is in Belgium’s interest. The Committee delivers its opinion to the Minister for Foreign Trade who decides whether or not to grant interest rate stabilisation. All applications are subject to the approval of the Council of Ministers.

 
Promissory note

You or your bank will be informed of the decision to grant interest rate stabilisation through a document known as a ‘promissory note’ which guarantees an interest rate (CIRR rate) for a period of four months from the date of the minister’s decision.

If the transaction is not completed within this period, the promissory note may be extended by one or more periods of four months on the basis of a written request by the exporter or the bank. 

 
Ministerial decree

If the transaction is concluded within this period, or before the expiry of the promissory note if the period is extended, a Ministerial Decree is drawn up and assigned to the bank to guarantee interest rate stabilisation throughout the credit repayment period. This ministerial decree is drawn up by the Finexpo Secretariat on receipt of the commercial contract and the financing agreement.

At each six-monthly repayment (and also during the drawdown period), the bank sends Finexpo a document specifying the rate at which it has obtained refinancing on the foreign currency or euro market. 

If the refinancing rate plus the bank commission is higher than the CIRR rate, Finexpo will pay the difference to the bank. If it is lower, the bank has to pay the difference to the State.

 

 

Finexpo