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Export support instrument
The Export Contribution is a subsidy granted by SIMEST under the 295/73 Fund to support the discount of credit instruments issued by the Foreign Debtor against a payment deferral granted to the Buyer.
§ Export Finance · SIMEST Circular 3/2023
Non-recourse / with-recourse discount of credit instruments, fixed CIRR rate locked at contract signing, and a direct interest contribution from the Italian state. Architecture, eligibility and pricing — at a glance.
How it works, who uses it, why it pays off — the SIMEST L. 295/73 framework distilled.
The Export Contribution is a subsidy granted by SIMEST under the 295/73 Fund to support the discount of credit instruments issued by the Foreign Debtor against a payment deferral granted to the Buyer.
Non-recourse or with-recourse discount entered into between the Italian Exporter and the Discounting Bank, on export contracts for machinery, plants, studies, design, works and services (IT/EU/non-EU origin within OECD Consensus limits).
Minimum deferral tenor 24 months; maximum in line with the OECD Arrangement (Consensus) according to country category and sector. Deferrable portion up to 85% of contract value + local costs + brokerage (≤ 5%).
Contribution = bank discount rate − exporter deferral rate, only if positive, within the matrix cap (SMALL / MID / LARGE). Exporter deferral rate not lower than the CIRR at signing date.
Maximum contribution levels (period 15.12.2024–14.6.2025): SMALL up to CIRR +1.1543% (EUR); MID +0.6863%; LARGE +0.0333%. Absolute statutory cap: 5%.
The Contribution is disbursed to the Italian Exporter within 30 days of a complete request, net of 4% withholding tax where applicable. Application is fully digital via the SIMEST Portal.
The Foreign Buyer coincides with the Debtor and issues the Promissory Notes. SIMEST disburses the Contribution directly to the Italian Exporter.
Difference — only if positive — between the discount rate and the deferral rate, within the matrix cap.
Rate charged by the Discounting Bank for the non-recourse / with-recourse assignment of the Exporter's credit instruments.
Rate charged by the Exporter to the Foreign Buyer / Debtor, net of SACE guarantee costs and bank fees. Cannot be lower than the CIRR in force at the contract signing date.
Maximum Contribution level set by the Subsidy Committee based on the Exporter's size (SMALL / MID / LARGE). Absolute cap in any case ≤ 5% (art. 9 c.5, D.M. 199/2000).
Six structural reasons why SIMEST Supplier Credit beats traditional bank financing.
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.
Six reasons why the Italian Exporter monetises a deferred-payment sale better than a traditional cash sale.
Non-recourse discount of the PNs turns a deferred sale into immediate cash on delivery. The Exporter monetises contract value net of the discount, without waiting for maturities.
The Export Contribution is disbursed directly to the Exporter, equal to the difference between discount rate and CIRR (within the matrix cap). It drastically reduces the cost of the discount.
With non-recourse discount, credit risk on the Foreign Buyer passes to the discounting bank. The Exporter exits both counterparty and country exposure.
Any SACE policy can be assigned to the discounting bank, facilitating discounting at competitive rates and mitigating country risk for bank pricing purposes.
Offering a 5–8 year deferral at CIRR is a decisive commercial advantage versus bids from countries with their own export credit agencies.
The discount is split across PNs issued at SAL milestones: cash inflows are spread along industrial progress, not concentrated at acceptance.
Which contracts qualify, which deferral terms, which credit instruments and up to what amount.
Non-recourse / with-recourse discount contracts between the Discounting Bank and the Exporter, covering export contracts for machinery, plants, studies, design work, works and services.
Goods and services of Italian, EU and non-EU origin. OECD thresholds for EU sub-supplies: 40% below EUR 7.5 m; EUR 3 m between 7.5–10 m; 30% above 10 m. Excess amounts eligible only if SACE-backed.
Minimum 24 months. Maximum in line with the OECD Consensus based on country category and sector of the exported goods, plus any applicable sectoral agreements.
Up to 85% of the value of goods and services. Above that threshold: local costs up to the Consensus ceiling + brokerage / agency fees up to 5% of contract value.
Up to the Consensus maximum, in consecutive equal semi-annual instalments. The first instalment falls due within 6 months of the SPOC (Starting Point of Credit).
Promissory Notes, bills of exchange, irrevocable letters of credit, irrevocable and autonomous letters of guarantee, irrevocable stand-by letters of credit.
See the end-to-end process — from preliminary notice to SIMEST Portal application, Subsidy Committee resolution and disbursement of the Contribution.
See the Process