European Union

The European Union Directive aimed at harmonising medium/long-term guarantee activities came into force in June 1998. The Directive strives to provide equal guarantee terms throughout the EU and thus equal competition possibilities for export products, where the related finance terms do not constitute a competitive edge.

The Directive encompasses rules for

• guarantee conditions,
• guarantee premiums,
• country policy and
• notification procedures.

As to guarantee premiums and country policy, the Directive observes the OECD's Premium Agreement.

An EU communication based on the EU competition rules concerning short-term (risk period less than 2 years) export credit guarantee activities is effective since 1997. The communication denies official export credit agencies from cover marketable risks, which are risks that private insurance companies are willing to cover. According to the Communication, Finnvera cannot grant guarantees with a risk period less than 2 years (manufacturing period + repayment period) to the following markets:

• EU countries (Austria, Bulgaria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom)
• Australia
• Canada
• Iceland
• Japan
• New Zealand
• Norway
• Switzerland
• USA