Finnish Export Credit Ltd (FEC) administers the Finnish interest equalisation system.
The Government of Finland is responsible for the interest support to be paid to financial institutions on the basis of the interest equalisation agreements. Therefore the interest equalisation agreements carry a BIS 0% weight for capital adequacy calculation purposes.
FEC and the financial institution arranging the export credit will enter into a co-operation agreement prior to the first transaction. The procedure of interest equalisation is based on ISDA terms. The financial institution shall have an investment grade rating for its long term funding and sufficient knowledge and experience in arranging and financing of officially supported export credits. FEC has signed co-operation agreements with a number of financial institutions.
Transactions benefitting from interest equalisation shall meet the criteria of the OECD Arrangement.
The credit is generally covered by an export credit guarantee, but the risk may also be carried by the financial institution.
For further information, please contact Finnvera’s personnel in Export Financing.