Bank Risk Guarantee

Bank Risk Guarantee protects the bank of a Finnish export company against risks involved in bank guarantees given to the exporter to secure payment of the purchase price.

Resembling a Letter of Credit Guarantee, the Bank Risk Guarantee is a streamlined product covering risks associated with a foreign bank.

The Bank Risk Guarantee covers commercial risks arising from the buyer’s bank and political risks arising from the country of the buyer’s bank.

A Bank Risk Guarantee with normal coverage generally covers 95 % of commercial risks and 100 % of political risks. In the risk-sharing model, the coverage for commercial and political risks is at most 50%. The guaranteeing bank must retain a certain percentage of the risk. This percentage, determined by Finnvera, is usually at least 15 %.

Attachments
Application, normal coverage (PDF)
Application, risk-sharing model (PDF)

General Conditions (PDF)