The Bank can assist with financing of capital equipment and project-related goods and services. We normally require that the importer's bank or another acceptable bank guarantees the importer's payment obligation.
In order to provide financing to exporters and make financing as inexpensive as possible, the Bank will often take out a guarantee from an ECA (Export Credit Agency). The purpose of these agencies is to support Nordic exports by issuing guarantees for export financing at favourable prices.
The issuance of such guarantees is subject to certain general conditions set forth by the OECD. These are the most important:
- The sale must involve capital equipment and project-related goods and services.
- The importer must pay at least 15% of the contract amount in advance.
- Whilst 85% of the contract amount may be export-financed, the guarantee may also cover certain expenses for establishing the financing, such as the guarantee premium paid to an export credit agency.
- The maximum period between instalments is six months.
- The portion of the export from the exporter's home country must be at least 20%-50%, depending on the importer's country and the export credit agency involved.
- The local part of the contract must be covered by the down payment.