Premium matrix: export credits exceeding 12 months

For transactions with a credit period exceeding twelve months, EKN applies a tariff shown in a matrix with country risk categories from 0 to 7 and debtor categories from A to F. The price levels in the matrix are shown as an annual premium rate in hundredths of a percent (base points) of the credit amount. The annual premium can be likened to an annual interest rate.

The tariff shows both an interval and a standard premium rate. Guarantees for smaller transactions are often priced at the standard rate. Guarantees for larger transactions are more usually priced within the entire interval. Degree of cover, currency and credit interest rate level affect the annual premium rate allocated. In debtor category A, there is no interval. For this category, the OECD-agreed minimum premium rate applies, according to a calculation model that takes neither currency nor credit interest rate into account.

The premium applied and debtor classification is determined by the transaction as a whole. This means that premium and debtor category are not only affected by the country risk category and the borrower’s own creditworthiness, but also by the amount, how the transaction is structured, and the security offered. Consequently, depending on the amount and the structure, the premiums for two transactions involving the same company can be set differently.

Country risk category 0 - 7 Debtor category A - F

 

 

A+

SOV+

A

SOV/CCO

 B

CC1

C

CC2

 D

CC3

E

CC4

 F

CC5

0

Standard

Intervall

 

5

 

15

10-25

35

25-55

95

55-150

190

150-240

330

240-500 

1

Standard

Intervall

MPR-10%

(6)

MPR

(7)

15

MPR-35

45

35-80

130

80-160

220

160-260

350

260-500

2

Standard

Intervall

MPR-10%

(25)

MPR

(28)

45

MPR-55

75

55-110

140

110-170

230

170-270

370

270-500

3

Standard

Intervall

MPR-10%

(52)

MPR

(58)

75

MPR-110

120

110-150

170

150-210

250

210-320

390

320-500

4

Standard

Intervall

MPR-10%

(113)

MPR

(126)

150

MPR-160

170

160-180

190

180-250

290

250-360

430

360-500

5

Standard

Intervall

MPR-10%

(158)

MPR

(176)

200

MPR-210

220

210-230

240

230-300

310

300-390

440

390-500

6

Standard

Intervall

MPR-10%

(198)

MPR

(220)

240

MPR-260

280

260-290

300

290-330

360

330-410

460

410-500

7

Standard

Intervall

MPR-10%

(249)

MPR

(277)

310

MPR-320

340

320-350

360

350-400

430

400-450

480

450-500

Risk class A is based on the minimum premium rate (MPR) permitted by the OECD. 

Debtor categories

The debtor in a transaction is placed in a category from A to F. Category A contains the country’s strongest debtors. Category F contains the weakest. Below is a description of how debtors are usually categorised. However, companies, banks and public borrowers can be placed in any category.

A - 

Central bank/Ministry of Finance etc.

B -

Central government agencies and ministries, state-owned banks etc.

C -

First class companies, normal banks, other public debtors

D -

Normal companies, weak banks

E -

Weak companies, project risks with certain types of collateral

F -

Newly established/weak companies, project risks