Other terms and conditions

• Finnvera complies with the OECD Arrangement on Officially Supported Export Credits (OECD Arrangement). The OECD countries have agreed on the terms of export credits of two years or longer supported by public funds, in the so-called Arrangement on Export Credits. It defines interest rates, credit periods, cash payment (advance payment) requirements and the starting point of repayment. The OECD Arrangement also applies to bill of exchange financing.
• For more information, visit Finnvera's website: International regulation and cooperation | Finnvera

• The maximum maturity of the credit period depends on the object of the transaction, the value of the export contract, the buyer's country rating and the OECD Arrangement.
• In the OECD Arrangement, the buyer countries are classified according to their national product into two groups, which are assigned their own credit periods. In relatively rich countries, the maximum repayment period is primarily 8.5 years and in relatively poor countries the maximum is 10 years. The OECD Arrangement allows for a maximum repayment period of 15 years for both groups.
• In bill of exchange financing, the maximum maturity is typically 5 years.

The credit must primarily be repaid in equal instalments every 6 months. Typically, the first repayment instalment must be paid no later than 6 months after delivery. More specific details are defined in the OECD Arrangement. Finnvera is happy to assist in confirming the conditions applicable to an individual export transaction.

In practice, the repayment period for bill of exchange financing project begins 6 months after delivery.

In the case of a floating rate credit, the borrower may prepay the credit on any interest or instalment payment date. The credit can also be prepaid on another day if the creditor gives its permission thereto. Prepayment of the credit on a date other than the interest or instalment payment date may result in break costs for the creditor. The payment of such break costs is a prerequisite for the creditor to authorise prepayment on another day.

If the loan has a fixed interest rate, early repayment often entails break costs, regardless of the date on which the payment was made. Break costs are also typically higher than in a floating rate loan, as the costs are calculated until the end of the loan period (final maturity), whereas in a floating rate loan, the break costs are typically calculated until the end of the respective interest period. It is more difficult to make changes to fixed-rate credit during the credit period, and when changes are made, it often costs money. Break costs may arise in connection with prepayment, changes to the repayment schedule, cancellation of the credit, non-disbursement of the credit, etc. If it is known in advance that changes to the credit are likely to be made during the credit period, it is advisable to select a floating interest rate credit.

In the case of bills of exchange, the owed amount can be repaid at any point before the due date.

According to the credit terms, the creditor can declare the loan due for immediate payment and demand payment also from the possible guarantor, and the creditor can begin to realise the security on the credit. Instead of making the loan immediately due, the creditor may increase the margin charged on the credit, demand new security or similar measures to improve the creditor's position.

As a rule, Finnvera's and Finnish Export Credit's own agreements are governed by Finnish law. In this case, Finnvera's own lawyers can prepare the contract templates and modify the contracts should any changes occur. This reduces the borrower's legal costs related to financing. The buyer and the borrower are informed by Finnvera already in the Letter of Intent that Finnvera requires the credit agreement to be governed by Finnish law.

In possible disputes and debt collection situations, Finnish law would apply, and Finnish courts would decide on the matter in accordance with the credit agreement. As such, Finnish law is not very dissimilar to corresponding laws in different countries.