Concessional Credits

• A concessional credit is an export credit for mainly Finnish made deliveries, which is supported by an interest subsidy.
• 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 and Lower Middle Income Countries whose GNI (Gross National Income) per capita is less than USD 3855 (valid until July 2010). However, OECD recommends that tied aid credits should not be granted to countries with the UN’s Least Developed Country 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. 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 Guaratee

Either the lender or the exporter can apply for Finnvera's 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
Liisa Piha: +358 9 1605 6284
Maaret Ukkonen: +358 9 1605 6426
e-mail: first name.last name@formin.fi
Ministry for Foreign Affairs of Finland ( www.formin.finland.fi )

Finnvera plc
Outi Homanen: + 358 204 60 7228
Mika Relander: +350 204 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 2009

Links:
Buyer Credit Guarantee