- General Requirements:
- Minimum 30 % Norwegian content in the export contract
- Maximum 30 % of the export contract value may be local costs
- The share of local costs that can be financed by ECA-financing, according to OECD, is 30 % of the export contract value, assuming that there is no local costs in the export contract itself. If there is local costs in the export contract, we can only finance up to the maximum 85 % of the contract value if the local value of the contract does not exceed 30 % of Norwegian + third country value of the contract. In other words local costs in the contract cannot exceed 23 % of the total contract value.
- Cash portion (“down payment”) 15-30 % depending on term sheet provided by GIEK if application is approved
- GIEK may cover commercial risk (up to 90 %) and political risk (100 %)
- Co-operation with commercial banks (co-guarantors)
- Standard down payment terms:
- Infrastructure: maximum 8.5 yrs in OECD; 5 years is standard
- In developing countries maximum 10 years
- Renewable energy project maximum 18 years
- First down payment 6 months after starting point of credit
- Semi-annual down payments
Export contracts of less than NOK 50 million:
Exporter’s choice between SME Loan A and B
- Buyer pays exporter min. 15% up to 30% of contract value up-front (cash portion).
- GIEK guarantees for up to 90% of the loan amount.
- The residual of 10% either by bank guarantee, supplier’s cash deposit or supplier’s credit.
- The loan is documented by a simplified loan agreement under Norwegian law.