It often creates various financing goals, geopolitical risks, interest rate changes, as well as currency fluctuations, obstacles that may be completed by the deal. However, with the appropriate banking partner, these challenges can be converted into opportunities. Raiffeisen Bank International experts discuss how these needs can be met, using the real world scenario. Please note evacuating responsibility at the end of this announcement.
Difficult scenario
Imagine that you are an Austrian source about to close an important deal with a Serbian agent, as it provides a 10 million euro food processor. Your goal is clear and direct: safe payment in euro according to the delivery schedule. Meanwhile, your Serbian partner would like to obtain attractive long -term financing. How do these requirements and goals gather?
In today’s world, the risks are global. “Geopolitical developments can have far -reaching effects in all regions, including Central and Eastern Europe,” says Evgeniya Sharkova of RBI Trade Finance. “In addition to the corresponding risks and political risks, the parties in the commercial contract may face the risk of interest rates from FX and interest rates,” adds Martina Zimmerle, RBI Capital Markets. In the end, exporters are looking for new ways to create additional competitive advantages. “By arranging long -term financing solutions to their customers, exporters can make a more attractive deal for potential importers,” explains Sanin Merdžan, RBI Export Finance.
Securing your transactions
As a source, your primary interest is to ensure the safety of payment. “From the different commerce financing solutions in RBI, the Credit Speech (LC) is the first option in the scenario.” “LC can either be either by our Serbia, or one of the numerous partner banks we have in the country.”
“If you want to accelerate the payment under LC, Upas LC (which the user pays in the Credit Speech) may be a good way to fill this period until the long -term financing covered with the European Agency is collected,” says Sharkova. By exporting UPas LC, the imported LC is released with deferred payment and limit the maximum of up to 360 days. For higher security, RBI LC, issued by the local bank. Consequently, the source will reduce the risk of the opposite party by taking the risk of first -class payment from RBI instead of the risk of a local bank or a local importer.
One of the main features of the Export Upas LC is that the source will receive its payment under the LC in sight, which means when submitting compatible shipping documents. This special form of discount under LC provides the source the ability to improve its cash flow and improve its public budget.
Meanwhile, Export Upas LC provides the importer’s expanded payment commitment to the source bank. By providing longer payment conditions, the source enhances his negotiating position with the customer. The importer must bear the interest on the implied payment period under this structure.
With LC and the next ECA financing, the source is able to alleviate the corresponding risks and political risks. Moreover, the payment is received by the contract in EUR according to the agreed table. On the other hand, its Serbian partner gets financing in EUR at an attractive cost. The multi -product solution provides an ideal bridge between LC financing and ECA financing.
Enhancing your competition feature
RBI provides long -term long -term financing solutions covered with ECA, such as Jupiter’s credit line and RBI shopping line for the purpose of financing Austrian/European imports of investment goods that start from two million euros onwards and guaranteed by the Austrian credit agency “OEKB” or any other credit agency to export Western Europe (ECA).
“For private scenario, as soon as the customer succeeds in approving the internal RBI reviews and credit reviews, we will provide OEKB-GUANTEED buyer with a value of 10 million euros,” says Mirdan. “This solution gives liquidity of the source and a competitive edge, while the importer benefits from the long -term financing conditions due to the coverage of the commercial and political risks of ECA provided to the lender as well as rapid implementation, which helps them manage the cash flow more effectively.”
Moreover, exporters benefit from the option to cover the production risk, adding an additional layer of safety to their operations. “When financing solutions in addition to the offer deal, exporters can enhance their competitiveness in the global market,” says Mirdan.
On the other hand, this arrangement allows importers to preserve their banking lines for other work needs, providing them with greater financial flexibility and debt capacity. In addition, ECA guarantee can be funded, which reduces the financial burden on the importer.
FX interest rate risk management and interest risk
“Although the currency risk in the scenario may be simple at first glance because RSD is the Ruar FX rate, the risks are still on the importer because they have finished a long -term financing contract in EUR and gets revenue in RSD,” Zimmerl notes. “Focusing on the importer is building on stable exchange rates and interest rates for risk management effectively and improving financial operations in Serbia, which guarantees flexibility in a difficult economic scene,” she explained. “This is why it is extremely important to have a partner who understands the global situation and also the macro, market and politics environment on the ground.”
Local experts at RAIFFEISEN BANK inform the impact of the US tariff policies closely, along with local risk factors. Aleksandra Maksimovic, head of the Treasury and Investment Banking Services at Raiffeisen Bank Serbia, notes, “Despite all the challenges, the economic slowdown is still not certain in difficult data, although it is expected to be seen in the next seasons by looking at“
Hedging loans in the future
“The question of whether the EURRSD FX risks must eventually depend on the customer’s point of view in the market as well as internal hedging policies,” Zimmerle explains. Looking at the nature of the FX Forward market in Serbia, the hedge is generally to capture shorter. “For example, the importer can buy the attackers for a period of three months, six months, and an additional bond to attackers in the eligibility to hedge the repayment of loans in the future,” she says. On the other hand, given that the FX rate is managed and infrared teams are positive, the importer may choose a hedge from the current risk of FX and monitor the situation with the help of a strong local partner, such as Raiffeisen Bank Serbia.
Exposure to interest rates
IRS are vital tools for interest rate management, allowing the parties to exchange fixed and floating interest rate payments. It is fixing cash flows by converting changing debts to fixed debts or vice versa, thus reducing borrowing costs. In the case of the Serbian importer, who gets long -term financing in the euro, RBI may recommend a hedge of the interest rate risk through the Tax Authority. “Bennnnnnnnnn overbeshi in Serbia provides a hedge of interest rates starting from virtual amounts of 500,000 euros, with complications from one to ten years, under a local major agreement,” explains Zimmerl. In addition to the aforementioned offers of Raiffeisen Bank Serbia, it should be noted that RBI is able to provide comprehensive, consulting, and also experience in other CEE markets, thus supporting customer business in the region. Close and sincere communication with the customer is vital, because the Tax Authority and other derivatives are complex financial tools that provide risks and opportunities. It is important that the customer has a clear understanding of the performance, risks and opportunities for these financial tools.
Smooth support through cooperation through approval
RBI’s integrated approach between different products and solutions, such as experience in financing trade, export financing, and Capital Markets, provides comprehensive support to meet the needs of our customers. Distinguish CEE efficiency through RBI sub -banks, providing custom solutions. “We are adapting to market changes, and we constantly enhance our services to provide flexible financial solutions amid geopolitical and economic landscapes.” With strong mitigation strategies, RBI helps customers to move in volatile markets with confidence, ensuring competitiveness and security.
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Advertisement: This advertisement is made purely as non -binding information. The information contained in it does not constitute an offer, a recommendation, or a financial analysis. They are not alternative to individual investment advice on buying and selling financial tools or making any investment decision. Please realize that financial investments as a concentration in this announcement involve financial risks, including the potential total capital loss. The information provided here also does not constitute financial or legal advice. The financial and legal treatment of investments depends on your personal status. You are strong advice to search for professional financial, financial and legal advice before making any investment decision. Be aware that any hedge involves derivatives, which are complex financial tools and are not easy to understand. Investing in derivatives causes a total loss of invested capital and in some cases it may require adherence to providing additional capital. Thus, only this information is taken for professional customers and qualified opposite parties under Mifid II. Please also note that information related to the previous performance is not a reliable indication of actual future performance.
