Interest Equalisation

Table of content

Interest Equalisation

Finnish Export Credit Ltd (FEC) administers the State of Finland’s interest equalisation system.

Banks play a key role in the interest equalisation system. The bank negotiates a credit agreement that meets the terms set by OECD, funds and and manages the credit. The bank often covers the credit risk with export credit guarantee but the credit risk can also be covered by the bank itself or the bank can use other arrangement of it’s choice.

How does the interest equalisation system work?

Under the interest equalisation system the bank arranges for its client purchasing Finnish capital goods and services a fixed CIRR-based export credit. A case-specific interest equalisation agreement with FEC provides the bank a hedge, which converts the fixed CIRR-based receivable into a floating rate receivable.

Under the interest equalisation agreement the bank will pay a fixed CIRR rate plus an optional margin to FEC and receive a floating rate (normally Euribor or Libor) plus a spread from FEC as follows:

Repayment period in

Credit amount


under 5M€

5–25 M€

25–50 M€

over 50M€

5 or under 

50 bp

40 bp

35 bp

30 bp

over 5–10

50 bp

45 bp

40 bp

40 bp

over 10

50 bp

50 bp

45 bp

40 bp

Main terms of interest equalisation

The OECD term export credit is arranged and funded by a financial institution. The financial institution is responsible for documentation, and shall administer the credit and its securities throughout the entire life of the credit. The credit currency is euro, United States dollar or the buyer's country's currency.

FEC charges the client a case-specific margin above the base rate, a commitment fee and a handling fee for renewing the offer.

Co-operational banks

FEC has signed a co-operation agreement with following financial institutions:


AKA Ausfuhrkredit-Gesellschaft m.b.H

Banco Bilbao Vizcaya Argentaria S.A.

Banco Santander S.A.

Barclays Bank Plc

Bayerische Landesbank

Citibank International Limited

Citibank N.A.

Commerzbank Aktiengesellschaft

Credit Agricole Corporate and Investment Bank Helsinki Branch

Credit Suisse AG

Danske Bank A/S

Deutsche Bank AG London Branch


Fortis (BNP Paribas) SA/NV

HSBC Bank Plc


ING Bank N.V

JPMorgan Chase Bank, N.A.

Jyske Bank A/S

KfW IPEX-Bank GmbH

Mizuho Bank Ltd.


Nordea Bank Finland Plc

Raiffeisen Bank International AG

Skandinaviska Enskilda Banken AB (publ)

Societe Generale

Sparebanken Vest

Standard Chartered Bank

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation Europe Ltd

Svenska Handelsbanken AB (publ.)

The Bank of Tokyo-Mitsubishi UFJ, Ltd

The Hongkong and Shanghai Banking Corporation Limited

The Royal Bank of Scotland Plc

The Standard Bank of South Africa Limited

UniCredit Bank AG

UniCredit Bank Austria AG