Eximbank guarantees Lithuanian loans to import Taiwanese products

0

Taiwanese and Lithuanian public financial institutions have signed an agreement to guarantee loans to Lithuanian importers of Taiwanese products, the Ministry of Economic Affairs announced yesterday.

The agreement was signed on August 23 by the ROC Export-Import Bank (Eximbank, 輸出入銀行) and Investment and Business Guarantees Ltd (INVEGA).

Under the agreement, INVEGA would provide loans to Lithuanian small and medium-sized enterprises (SMEs) for the purchase of Taiwanese goods, while Eximbank would guarantee up to 70% of the loan amount, the ministry said.

Photo: Ann Wang, Reuters

Eximbank helps boost Taiwan’s import and export trade by offering financial services such as export credit insurance and providing lines of credit to domestic and foreign financial institutions, who then on-lend the funds to their customers for the import of Taiwanese products.

The main objectives of INVEGA are to provide financial services and support to SMEs, with the main aim of facilitating their access to finance.

The agreement marks Eximbank’s first pact with a foreign financial institution on loan guarantees.

The ministry said it would provide financing to Eximbank to guarantee INVEGA loans for up to five years, with preferential service charges for Lithuanian SMEs, and to provide export insurance for Taiwanese exporters.

Under the agreement, when a Taiwanese exporter receives an order from a Lithuanian importer, the latter would be referred to INVEGA to access financing, if needed, the ministry said.

Taiwanese exporters will be offered a guarantee of up to 90 percent of the loan amount to purchase raw materials for the production of goods to be shipped to their customers in Lithuania, he said.

In a separate statement, Eximbank said it would also provide tailored loan guarantees to Lithuanian companies, while assuming some of the export risks for Taiwanese exporters, as per the agreement.

The deal is expected to encourage Lithuanian importers to buy more Taiwanese products, which will help boost Taiwan’s exports, Eximbank said.

The deal is supported by the Ministry of Economy, the National Development Council, the Ministry of Foreign Affairs, the Financial Supervisory Commission and the Taiwanese representative office in Lithuania, the bank said.

Noting that Lithuania is set to open a trade office in Taiwan, Eximbank said the deal would be a congratulatory gift.

Eximbank and INVEGA signed a memorandum of understanding on a loan guarantee scheme in June, during a visit to Taipei by a Lithuanian delegation led by Deputy Minister of Economy and Innovation Jovita Neliupsiene.

In the first six months of this year, Taiwan’s exports to Lithuania rose 15.29 percent from a year earlier to $64.42 million, Eximbank said, citing data from the customs administration.

Last year, Taiwan’s imports from Lithuania rose 20.91 percent a year to about $132 million, the bank said.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of the Taipei Times.

Share.

Comments are closed.