How do I get paid? (Method of Payment)
For suppliers entering the Austrian market for the first time or selling to new customers, the usual practice is to require confirmed and irrevocable letters of credit. Most trade relationships between the United States and Austria, however, are well-established, and less stringent requirements, including both open account and extended terms, are often agreed upon once confidence is established. As Austria is a fully developed industrial nation, no special funding of U.S. export sales is available from U.S. governmental or multinational institutions. Austria’s international credit rating gives it preferred status for trade, finance, and investment guarantees. A bilateral arbitration agreement exists and can be included in contracts. In Austria, the period allowed for payment is between 30 and 60 days. Early payments are credited with a three percent discount. Supplier credits are common.
How does the banking system operate?
A wide range of credit and financial instruments is offered by all of Austria’s banks. The Austrian banking system is well developed, with worldwide correspondent relations, as well as offices and branches in the United States and other major financial centers. Large Austrian banks can also assist in trade and investment financing in Central and Eastern (CEE) and Southeastern Europe (SEE), where they operate huge networks. Western European banking groups dominate CEE/SEE banking markets. Six out of the seven largest Austrian banks hold sizeable investments in CEE/SEE and three of them are among the five largest foreign banking groups in the area. Many major foreign banks, including American, have operations in Austria.
Austrian banks can also help arrange financing for export and investment transactions in Central and Eastern Europe. The Austrian Government has neither a counter trade policy nor specific regulations in this field.
General financing to establish foreign operations in Austria is readily available. Foreign firms enjoy access to Austrian credit and capital markets without restriction. On January 1, 2002, Euro notes and coins were introduced. Since March 1, 2002, the Euro is the only legal tender in Austria and the entire Euro area, which besides Austria includes twelve other member countries. Thus, U.S. investors face no exchange rate risk in Austria vis-à-vis the other twelve EMU participants.
Foreign-Exchange Controls
Austria has a fully liberalized foreign exchange regime. There are no limitations on cross-border payments, whether related to foreign trade, capital investments, or other transactions, except to countries under UN or EU sanctions.
U.S. Banks and Local Correspondent Banks
Commercial and private
American Express Bank Ltd.
TRS Kaerntnerstrasse 21-23
A-1015 Vienna, Austria
Tel: +43 1 515 11-0
Fax:+43 1 515 11-100
Website: http://www.americanexpress.at
Corporate and investment banking - no retail services
Citibank International plc
Austria Branch
Kaerntnerring 11-13
A-1010 Vienna, Austria
Tel: +43 1 717 17-0
Fax:+43 1 712 97 07
Website: http://www.citigroup.com
Consumer financial services
GE Money Bank GmbH
Donau-City Strasse 6
A-1223 Vienna, Austria
Tel: +43 50 203
Fax:+43 50 203 / 9325
Website: http://www.gemoney.at
Western Union International Bank
Canovagasse 7/14
A-1010 Vienna, Austria
Tel: (0043 1) 506 17 120
Fax: (0043 1) 506 17 990
Website: http://www.westernunionbank.com
Austrian Banks with Subsidiaries in the U.S.
Erste Bank der oesterreichischen Sparkassen AG
Erste Bank der oesterreichischen
Sparkassen AG
Graben 21
A-1010 Vienna, Austria
Tel: +43 1 50100- 10100
Fax:+43 1 501009-10100
Website: http://www.erstebank.at
Erste Bank der oesterreichischen
Sparkassen AG
280 Park Avenue
West Building, 32nd Floor
New York, NY 10017
Tel: (212) 984-5600
Fax: (212) 986-1423
Raiffeisen Zentralbank AG
Raiffeisen Zentralbank AG
Am Stadtpark 9
A-1030 Vienna, Austria
Tel: +43 1 717 07-0
Fax:+43 1 717 07-1715
Website: http://www.rzb.at
RZB Finance LCC
1133 Avenue of the Americas
New York, NY 10036
Tel: (212) 845-4100
Fax: (212) 944-2093
Website: www.rzbfinance.com
Project Financing
Commercial financing is readily available from Austrian banks and institutions on normal market terms, but international financial institutions are not active in Austria. Concessionary financing may be available for U.S. firms in association with Austrian companies for projects in neighboring Central and Eastern European countries.
OPIC does not operate in Austria. The Exim Bank has no active programs in Austria. The risk of political or economic disturbances that could disrupt trade or investment projects in Austria is judged to be very low.
Tendering for European public procurement contracts
The U.S. Mission to the European Union in Brussels has developed a tool to help U.S.-based companies bid on public procurement supplies contracts in particular. All contracts for supplies that are procured by European public authorities (national government departments, regional agencies and public institutions, city authorities) above established thresholds are open to U.S.-based companies by virtue of the Government Procurement Agreement, of which the U.S. and the EU are parties. All the tenders in this database are based on a selection of tenders published in the EU Official Journal, that are open to GPA member countries. The database contains on average 6,000 to 10,000 tenders and is updated twice per week.
http://www.buyusa.gov/europeanunion/eu_tenders.html