The article presents analysis and evaluation of the range and form of existing export support system in Poland through credit instruments. The instruments comprise export credits, principles of financing the settlement cycle of export transactions, and principles of subsidizing interest rates on export credits.

Lending for export purposes which, thanks to its popularity in highly industrialized countries, is becoming more and more important instrument to enhance export competitiveness, seems to be an extremely weak link of export promotion system in Poland. Almost all export transactions are settled in cash, very frequently with an advance. Share of export credits in total exports in 1990-1997 accounted only for 1-1.5%. They were mostly mercantile credits. In practice, commercial banks used not to grant export credits to purchasers - one of most favorable forms of export financing for exporters. Also occasionally they offered modern financial and settlement instruments such as factoring, forfaiting or pre-financing. Therefore, the Polish export offer was much less competitive in terms of payment conditions in comparison to goods of other countries.

Relatively low level of mercantile credits and minor commitment of commercial banks in export financing result first of all from high costs of domestic money. Lending in foreign currencies would be even less profitable for banks than lending in zloty. Exporters themselves had negative opinion on credit terms and conditions offered by banks, and pointed at numerous difficulties in export credits availability.

Principles of subsidizing interest rates on export credits in Poland have not been approved by export financing institutions, and, in consequence, have not been implemented. It was due to the fact that both only certain types of credits were subject to subsidies and the subsidies could not exceed 20% of their costs. Consequently, the incentive to apply for subsidies was not sufficient.

Given all the above circumstances, all export financing burden remained, unfortunately, on exporters, and the banking system took it over only in a limited extent.