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CIRR rate ≪ market rate
The OECD Commercial Interest Reference Rate applied to the deferral is typically far below the rate the Buyer would obtain from local banks. Fixed, locked at contract signing.
§ Benefits for the Local Buyer · GCC SMEs & Large Corporates
Six structural reasons why SIMEST Supplier Credit beats traditional bank financing for UAE and GCC importers of Italian capital goods — a subsidised CIRR rate locked at signing, accounting treatment as Trade Payable, long deferrals up to OECD Consensus limits and no local collateral required.
The OECD Commercial Interest Reference Rate applied to the deferral is typically far below the rate the Buyer would obtain from local banks. Fixed, locked at contract signing.
Promissory Notes are booked as Trade Payable (D.8 / IAS 1.54k), not as Bank Debt. Banking covenants, rating and debt capacity are preserved.
From a minimum of 24 months up to 8–10 years in line with the OECD Arrangement, depending on country category and sector. Aligned with the payback cycle of the capital good.
Italian-origin machinery, plants and technology — European manufacturing excellence — through a financing mechanism that is competitive against local financing.
The non-recourse discount transfers credit risk to the discounting bank. The Buyer does not post collateral or additional local bank guarantees.
Consecutive semi-annual instalments, the first within 6 months of SPOC. The Buyer pays as the asset generates returns, avoiding concentrated outflows.
A 30-minute call is enough to assess whether your transaction qualifies for SIMEST Supplier Credit and to estimate the indicative all-in cost — including the expected Export Contribution and the effective CIRR rate on your deferred payment.
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