Home→News→Funding→Portugal now has an export credit agency: Fomento Trade started on 1 September
Portugal now has an export credit agency: Fomento Trade started on 1 September
Banco Português de Fomento has launched Fomento Trade, the Portuguese export credit agency, with solutions available since 1 September. It covers the risk of selling abroad on two fronts: short-term credit insurance distributed through private insurers, and medium and long-term guarantees managed directly by the bank.
Funding
Fomento Trade
What it is
Fomento Trade is the Portuguese export credit agency (ECA), run by Banco Português de Fomento and acting under a mandate from the Portuguese State. Its solutions have been available since 1 September 2026.
An export credit agency does not lend money to the exporting company: it covers risk. It is the instrument that lets a company sell on credit terms to a foreign customer, or bid for an international contract, without the risk of non-payment — or the political risk of the destination country — making the deal impossible.
Two areas of activity
| Term of the transaction | Who takes the risk | Instrument |
|---|---|---|
| Short term (repayment under 2 years) | Credit insurers authorised by ASF to operate in Portugal, which may benefit from the State guarantee | Short-term export credit insurance |
| Medium and long term (repayment of 2 years or more) | BPF itself, through Fomento Trade | Export guarantees and buyer credit guarantees, aligned with the solutions offered by ECAs in the other OECD countries |
Short-term cover is distributed through the private credit insurers already active in the market; medium and long-term transactions, usually tied to capital goods sales, are assessed and managed directly by Fomento Trade.
What else is covered
- Bonds attached to international contracts — performance bonds and advance payment bonds, essential for taking part in construction and public works projects abroad.
- Guarantees for Portuguese investment abroad, covering political risks only: expropriation, confiscation, war or social unrest.
Where the gap was widest
Source: Banco Português de Fomento