As part of facility which is coverd by ECFS , funds are provided to the project company established to implement the investment, for fulfilment of the payment obligation arising in relation to a project implemented by Importer and Exporter main Contractor. Credit is repaid out of income from the completed investment.
If large-Volume projects are concerned, ECFS partcipates in a co-financing arrangement, in patnership with domestic & foreign commercial banks. Owing to complexity & high transactions costs of cross border project financing,ECFS reccommend use of facility in cases where there's need of bank financing in excess of Tsh or USD 1 Million or equivalent amount.
ECFS offers this facility at fixed interest. In the case finanacing facilities offerd with a period exceeding 2 years at fixed interest, under ECFS arrangement a max of 85% of the foreign trade/general contracting agreement may be financed. A min 15% advance must be paid by buyer at the start of performance. Local costs may subject to individual apparaisal-also be financed in part.
It's necessary to certify the importer and Exporter Origin of the product and /or service constituting the object of the transaction
Based on assessment Of Risks of the project's implementation and operation, and the extent to which the projected cash flow (Financial Model ) serving as the source of repayment of the credit is substantiated.
