Glossary

Escrow Account

A possibility to obtain export guarantees for structured transactions and for project funding in addition to essentially state protected business.

Conditions:

  1. It has to be proved that the foreign customer generates enough currency to cover the debt service – capital and interest.
  2. The escrow account providing enough currency to be able to pay all interest and redemption rates has to be set up in a third country.
  3. The approval of the customer country’s government should be granted which authorizes currency revenues from the customer country to be transferred to the escrow account unhinderedly.
  4. The foreign debtor has to assign the entitlements from the escrow account as well as his other entitlements to payment from currency revenues to the loan granter.
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