
买方信贷业务要点-(英语-NOTES-FOR-BUYER'S-CREDIT).docx
1页NOTES ON “BUYER’S CREDIT”The preconditions for the application of “Buyer’s Credit” are as follows:1. MOU. The owner (government or private company, for example , developer) of the project signs a Memo of Understanding (MOU) with a Chinese company, like us.2. The owner’s capital. The owner should have got a fund at least 15% of the contract value, because the credit ceiling is 85%, not 100%.3. Guarantee. The owner has the capability to get a guarantee - either from the Ministry of Finance/ Central bank of his country, or a guarantee on natural resources, or both in some cases, if the Chinese banks require so.4. Initial approval. We will register the project information together with the signed MOU to the Chinese Embassy in that country for their initial approval. Usually, there is no objection except that there will be no guarantee from the government or natural resources. 5. LOI of Chinese bank. With the initial approval, the MOU, report of feasibility study, commercial planning etc, we will contact the Chinese banks for a letter of intention to issue credit (LOI).6. Contract value. Though the minimum sum for Buyer’s credit is USD2,000,000 according to the information on the Website of the Chinese banks, in fact, the value of a project should be greater than USD16,000,000, equal to RMB100,000,000。
