One of the most needed and essential services of any ECA is to help its national exporters to enjoy a timely and suitable access to finance and meet their financial needs at the pre-shipment phase when the exporters are in desperate need or feel a shortage of working capital loans. Such exporters when directly refer to the banks usually face some problems regarding the strictness of the financing bank in asking for heavy collaterals from the applicant. At such times the financing bank who is willing to pay working capital loans to the exporter, they can easily refer them to EGFI to issue a credit guarantee in favor of the bank. Such a credit guarantee is a 100% commitment toward the loan (principal + interest) that is used as collateral requested by creditors (banks and credit institutions). The Fund does the credit worthiness assessment of the exporter (the recipient of the loan) and based on the credit standing of the applicant and a combination of first and second rated collaterals issue a credit guarantee to cover the exporter's payment obligations toward the financing bank. These credit guarantees are issued in local or foreign currency (according to the type of approved facility) issued by the creditor.

Who might apply?
All banks and credit institutions who wish to grant export loans and working capital facilities for exporters but may not gain the requested collaterals from the applicant or feel the recipients of the loans have risky credit standings and need the Fund to act as their guarantor.

Commercial risks under cover:
•    Non-payment of the installments on the due date by the debtor (exporter) to the bank.
•   Insolvency, lien or any suspension of the exporters’ activities which lead to their protracted default and their inability to repay the instalments on the due date.