Forfeiting

Forfaiting is a form of attraction of funds from foreign financial institutions for short- and long period. In this scheme the rights to claim debt obligations to be fulfilled, including obligations connected with the execution of letter of credit, are bought by a foreign financial organization with a condition that Bank will repay these debt obligations in a period stated in a Credit Agreement (scheme).

To use the forfaiting scheme one needs to determine a foreign financial company, which is ready to buy debt obligations of the seller of the goods to be imported. 

Approximate conditions of realization of the investment project applying to the above mentioned financing scheme are:

• period of financing is up to 5 years;
• financing of up to 100% of the contract cost.