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Financial services for exporters
Published on 29 March 2018
Slovenia
Vzhodna Slovenija
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
With help of various financial instruments SID Bank, a promotional development and export bank 100% owned by Republic of Slovenia, promotes companies with following objectives:
-realization of international business transactions with financing Slovene exporters or with financing foreign buyers of Slovene goods/services and their banks,
-investments of Slovene companies abroad (founding or purchase of company, increase in capital),
-development of internationalization.
Majority of SID Bank's financing is available through commercial banks. In some cases, companies may contact SID Bank directly.
Services for Slovene exporters and investors abroad:
a. post-shipment financing of export transactions, financing outward investment:
-financing Slovenian companies or exporters (supplier credit),
-financing foreign buyers of Slovene goods and services or their banks (buyer credit), including credit lines,
b. on-lending via commercial banks - credit lines, that finance internationalisation;
-financing SMEs and MID-Caps;
-development of competitive economy and internationalisation
c. project financing:
-a special form of financing long-term projects, mainly from the area of traffic, municipal infrastructure, telecommunications, power supply, mining, paper industry, ecology, tourism.
SID Bank provides financing for remaining share of direct purpose lending to corporate and other clients, either within state aid schemes or by means of co-financing together with other banks.
-realization of international business transactions with financing Slovene exporters or with financing foreign buyers of Slovene goods/services and their banks,
-investments of Slovene companies abroad (founding or purchase of company, increase in capital),
-development of internationalization.
Majority of SID Bank's financing is available through commercial banks. In some cases, companies may contact SID Bank directly.
Services for Slovene exporters and investors abroad:
a. post-shipment financing of export transactions, financing outward investment:
-financing Slovenian companies or exporters (supplier credit),
-financing foreign buyers of Slovene goods and services or their banks (buyer credit), including credit lines,
b. on-lending via commercial banks - credit lines, that finance internationalisation;
-financing SMEs and MID-Caps;
-development of competitive economy and internationalisation
c. project financing:
-a special form of financing long-term projects, mainly from the area of traffic, municipal infrastructure, telecommunications, power supply, mining, paper industry, ecology, tourism.
SID Bank provides financing for remaining share of direct purpose lending to corporate and other clients, either within state aid schemes or by means of co-financing together with other banks.
Expert opinion
Access to funding continues to be a struggle for SMEs in their internationalization ambitions. This good practice from the state-owned SID Bank presents a set of specialized financing services specifically targeted at SMEs to increase their access to funding opportunities and international competitiveness. The range of services offered are targeted at Slovene exporters and investors abroad, while funding is mostly available through commercial banks. The attractiveness of such programs is e.g. illustrated by the fact that the bank group with its services covers more than 20% of Slovenian exports. In one year alone, a remarkable contribution to the creation and maintenance of ca. 17,000 jobs was made. As the practice itself outlines, the model has replication value for other contexts as well, especially in terms of the organizational model, implementation process and specific funding mechanisms.
Works at
Interreg Europe Policy Learning Platform
Resources needed
Republic Slovenia is sole shareholder of SID Bank with share capital of 300 million EUR.
Credit line Financing of SMEs and MID-Caps: approximately 100 million EUR.
Credit line Development of competitive economy and internationalisation: approximately 321 million EUR.
Credit line Financing of SMEs and MID-Caps: approximately 100 million EUR.
Credit line Development of competitive economy and internationalisation: approximately 321 million EUR.
Evidence of success
SID Bank’s services had following effects on Slovenian economy in 2016: contribution to the creation and maintenance of about 17 thousand jobs and regional representation in whole Slovenia; € 7.3 bn EUR of additional sales, 3.5 bn EUR of additional export, 2.9 bn EUR of GDP. SID bank group with its services covers over 20% of Slovenian exports.
Potential for learning or transfer
Practice implemented under Slovene Export and Development Bank Act and in accordance with Programme for internationalisation 2015–2020 and Priority Axis 3 of OP offers specialised financial services for exporting SMEs. It is an example of Slovenian trade policy providing economy safety and possibility of competitiveness in foreign markets. Established in 1992, it has grown and evolved in step with development of Slovene economy. SID Bank operations are based on clear strategy and business model deriving from long-term development documents of EU and Slovenia.
SID Bank does not pose competition to other financial institutions on the market (principle of non-discrimination of all users, transparency of services provided, compliance of operations and operating results).
Practice is transferable in terms of organisational model/implementation process and specific tools, with specially designed products for SME’s: a) easier and faster access, b) standardised documentation.
SID Bank does not pose competition to other financial institutions on the market (principle of non-discrimination of all users, transparency of services provided, compliance of operations and operating results).
Practice is transferable in terms of organisational model/implementation process and specific tools, with specially designed products for SME’s: a) easier and faster access, b) standardised documentation.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
SID Bank (Slovene export and development bank)
Slovenia
Vzhodna Slovenija
Contact
Senior project manager