Concessional Credits

Concessional Credits

• A concessional credit is an export credit for mainly Finnish made deliveries, which is supported by an interest subsidy. The financing can also include a grant portion.
• The interest subsidy is paid out of Finland's development cooperation budget. The recipient of the credit pays no interest.
• Concessional credits can be issued to Low Income Countries (LIC) and Lower Middle Income Countries (LMIC) whose Gross National Income (GNI) per capita is less than USD 3975 (valid until July 2012). However, OECD recommends that tied aid credits should not be granted to countries with the UN’s Least Developed Country (LDC) status and/or Highly Indebted Poor Countries (HIPC).
• The creditworthiness of the recipient country and the borrower must be acceptable to Finnvera.

The decision on interest subsidy for a concessional credit is made by the Ministry for Foreign Affairs of Finland. Concessional credits are guaranteed by Finnvera (the official Export Credit Agency of Finland). All banks operating in the European Economic Area can act as lenders. The lender is chosen by the exporter.

Application for the Buyer Credit Guarantee

Either the lender or the exporter can apply for Finnvera’s buyer credit guarantee. Information about the Buyer Credit Guarantee can be found from the link below:

Buyer Credit Guarantee

Guarantee applications are asked to address to:

Finnvera plc
Export Credit Guarantees
P.O. Box 1010
00101 Helsinki

Contacts:

Ministry for Foreign Affairs/Department for Development Cooperation
P.O.BOX 152, 00023 Valtioneuvosto
Postal address: Katajanokanlaituri 3

Oskar Kass: + 358 9 16005
Liisa Piha: + 358 9 16005
www.formin.finland.fi
e-mail: first name.last name@formin.fi
Ministry for Foreign Affairs of Finland

Finnvera plc
Outi Homanen: + 358 204 60 7228
Mika Relander: + 358204 60 7343
e-mail: first name.last name@finnvera.fi

Attachments:
Description of the origins in the export contract (PDF)
Repayment terms for concessional credits for the year 2012 (PDF)

Links:
Buyer Credit Guarantee