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 based on the target country and on the risk classification of the buyer/borrower/guarantor. 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). The final premium rate is determined based on a case-specific risk assessment.
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.
The guarantee premium levls for short term (repayment period less than 2 year) can be found from our premium table.