Sustainable lending

EKN makes a specific assessment for guarantees to public buyers in highly indebted low income countries.

EKN does not provide guarantees if the country has reached its limit of commercial borrowing or if the transaction is not in line with the country’s development strategy.

How is EKN’s assessment made?

  1. When a guarantee application is received, EKN checks the transaction against the International Monetary Fund’s (IMF) list of low income countries with limitations to their commercial borrowing.
  2. If the borrower is a public entity but not the Ministry of Finance, EKN contacts the country’s Ministry of Finance for confirmation that the loan is within the country’s limit for commercial borrowing.
  3. If the transaction clears the above checks, EKN makes the customary credit analysis of the borrower and consults the latest debt sustainability analysis for the country published by the IMF/World Bank.
  4. EKN contacts the IMF to inform that EKN intends to issue a loan to a public buyer in the country.

Keep in mind

Contact EKN early in the business negotiations so that any questions about sustainable lending can be managed timely and communicated to the borrower correctly.