Finnvera will continue to be able to insure short-term export transactions to western industrialised countries in exceptional cases
The European Commission has granted Finnvera an extension to the exemption, which allows us to guarantee export transactions to western industrialised countries with a risk period of less than two years. The new exemption is valid immediately and will continue until the end of 2025.
The permit covers the following countries:
- Austria, Belgium, Bulgaria, Croatia, the Czech Republic, Cyprus, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain and Sweden.
- Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, the United Kingdom and the United States.
The exemption allows Finnvera to insure short-term export transactions to the above countries in the following cases:
- When the applicant is an SME with an annual export turnover not exceeding EUR 2.5 million.
- When applying for credit insurance for an individual export transaction with a risk period of at least 181 days and up to two years.
Finnvera can insure transactions for which a private credit insurer does not provide insurance
As a public export credit agency, Finnvera cannot normally insure transactions with a payment period of less than two years in these so-called marketable countries, but private credit insurers are the primary provider of insurance cover, and Finnvera's task is to supplement the market.
Under the exemption, Finnvera can only insure transactions for which a private credit insurer has not granted credit insurance.
Export credit guarantees can be applied for in Finnvera's electronic transaction service.
The buyer's creditworthiness is assessed in accordance with a normal risk assessment.
In countries with market risk, Finnvera typically applies a 90% guarantee coverage in credit insurance (Credit Risk Guarantees and Export Receivables Guarantees). For guaranteed exports, we require a degree of domesticity of 30 per cent or that the goods are manufactured by a Finnish exporter or a company belonging to the exporter's group.