Why does Credit Oman issue pre-shipment credit guarantees on behalf of credit insured exporters to commercial banks?
The Agency issues pre-shipment credit guarantee to commercial banks in order to assist the exporters in obtaining pre-shipment financing for the purpose of purchasing raw materials, processing/manufacturing and packing of goods to be exported.
The guarantee fills the security gap needed especially for small sized exporters who are in need of such financing but lack necessary collateral.
As a credit insured exporter to Credit Oman how can I obtain cover for pre-shipment as well as post-shipment periods?
Export credit indemnity cover is available prior to shipment if your company is carrying any risk of loss. A contract policy can be issued by Credit Oman to the exporter for such shipment. The extent of pre-shipment risk will depend upon the type of goods produced. Cover will be given for If non-standard or made to individual specification are to be exported . Otherwise, cover is given only for post shipment. The interest rate subsidy will be available from date of export only.
The exporter should first obtain export credit insurance cover against the buyer to whom shipments are to be made under the Policy in order to be eligible for pre shipment financing. Then, the eligible exporter who wishes to avail pre shipment financing facilities should contact his bank who in turn would apply to Credit Oman for guarantee to provide such financing. Credit Oman is not involved in providing such financing directly to the policyholder.