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The Working Capital Guarantee Program of the Private Export Funding

question 21

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The Working Capital Guarantee Program of the Private Export Funding Corporation (PEFCO) encourages commercial banks to extend short-term export financing to eligible exporters by providing a comprehensive guarantee that covers 100 percent of the loan's principal and interest.


Definitions:

Stoppage in Transitu

Interruption or halt of the transportation of goods before they reach their final destination, typically due to legal or logistical issues.

Good Faith

An honest intention to act without taking an unfair advantage over another party, often underlying contractual obligations.

Implied Condition

A term in a contract that is not expressly stated but is assumed to exist to fulfill the contract's purpose.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," which implies that the buyer assumes the risk about the quality and condition of the product being sold.

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