Country classifications and premium calculator

Factors determining the guarantee premium include:

• type of guarantee
• percentage of cover
• risk period
• classification of the buyer's/borrower's country
• creditworthiness of the buyer/borrower/guarantor

The pricing of Finnvera’s export credit guarantees is based on the risk classification of the buyer/ borrower/ guarantor. The risk classification reflects the creditworthiness of the buyer/ borrower/ guarantor. The OECD Premium Agreement limits the pricing of medium and long term (repayment period 2 years or more) Buyer Credit, Credit Risk and Letter of Credit Guarantees by setting Minimum Premium Rates for political and sovereign risks (risks connected to the Central Bank or Ministry of Finance). The ECAs of the OECD-countries shall not undercut these minimum rates.

When setting premiums, Finnvera takes into account the price indications of the international capital markets, other lenders and other risk takers as well as the competitive situation (matching).

Premium calculator gives indicative premium levels for medium and long term Buyer Credit, Credit Risk and Letter of Credit Guarantees. You can also have a look at the Premium Tables for short term Buyer and Credit Risk Guarantee (repayment period less than 2 years)

The premium for a Buyer Credit Guarantee is a flat fee on the principal of the credit, and is normally charged on each disbursed amount of the credit. The premium for Credit Risk and Letter of Credit Guarantee is a flat fee calculated on the guaranteed receivables, and is normally charged in one instalment.