The bank guarantee needs to be counter-guaranteed by the Buyer’s bank.
Resembling a Letter of Credit Guarantee, the Bank Risk Guarantee is a streamlined product covering risks associated with a foreign bank.
The Bank Risk Guarantee covers commercial risks arising from the buyer’s bank and political risks arising from the country of the buyer’s bank.
A Bank Risk Guarantee with normal coverage generally covers 95 % of commercial risks and 100 % of political risks. In the risk-sharing model, the coverage for commercial and political risks is at most 50%. The guaranteeing bank must retain a certain percentage of the risk. This percentage, determined by Finnvera, is usually at least 15 %.
The application should be sent to Finnvera via e-mail at eca(at)finnvera.fi.