New countries open for Letter of Credit Guarantees

Finnvera’s country policy has been revised for several previously off-cover countries. Finnvera is now able to cover Letter of Credit Guarantees for the benefit of confirming banks in nearly 40 new countries including many Eastern European, Central Asian and African states. In this group of high risk countries Finnvera can cover short term ILC’s opened by banks acceptable to Finnvera. By this revision Finnvera aims to increase the trade finance options available for Finnish exports.

Finnvera monitors the political and economical development of the countries involved as well as the commercial risk of the issuing banks. The acceptability of an individual transaction ultimately depends on these risk aspects.

A Letter of Credit Guarantee is an insurance to the confirming bank. The Guarantee covers risks arising from the country of the issuing bank (political risk) and risks arising from the issuing bank itself (commercial risk). The Letter of Credit covered by Finnvera’s Letter of Credit Guarantee should be irrevocable and compliant with the rules of the International Chamber of Commerce (ICC).

New countries open for Letter of Credit Guarantees