A new cooperation model improves the financing options available for small export transactions
Finnvera has revised the reinsurance agreement signed with Office du Ducroire (ODL), the Luxembourg Export Credit Agency, in 2000. The revision improves the financing options available for small export transactions. Thanks to the revised agreement between Finnvera and the ODL, Northstar Europe S.A. of Luxembourg, a company specialising in the financing of small-scale European exports, can now provide financing for the export trade of Finnish enterprises as well.
Finnvera has well-functioning export credit guarantee products for guaranteeing small export transactions, but the feedback received by Finnvera from its clients indicate that not enough financing has been available. Northstar Europe has recognised problems in the availability of financing even more widely and specialises in the financing of small export transactions. The ODL provides the primary guarantee for the financing granted by Northstar Europe. Finnvera can reinsure the ODL’s export credit guarantee, thereby making it possible to arrange financing for a Finnish export company.
By being able to offer ready-made financial arrangements to foreign buyers, companies can improve their competitiveness in international export trade. The typical loans granted by Northstar Europe are between 0.5 and 5 million euros. The maximum repayment period is five years.
Northstar Europe S.A. is a subsidiary of Northstar Trade Finance Inc. of Canada. The company has made corresponding arrangements with many other European export credit agencies. The parent company Northstar Trade Finance has a similar arrangement with the export credit agencies of Canada and the USA.