Updated General Terms and Conditions for Buyer Credit Guarantees
Please be informed that revised and updated General Terms and Conditions for Buyer Credit Guarantees now are available on EKN’s website.
The revised and updated General Terms and Conditions for Buyer Credit Guarantees are available under the link https://www.ekn.se/en/guarantees/general-conditions/, to be applied to applications received by EKN as from 20 June 2023. The following main changes have been made in relation to the General Terms and Conditions for Buyer Credit Guarantees as of 1 July 2020:
- Extended requirements for EKN’s consent in connection with Lenders’ transfer and pledge of rights/obligations under the Guarantee Agreement and the Finance Documents, together with some rearrangements/clarifications related thereto
- Information stating that the General Terms and Conditions are available in both the Swedish and English language has been removed, as they are only available in the English language
- A limited number of new definitions have been introduced to facilitate the reading of the various documents involved
- With regard to premium and other fees (i) some clarifications have been made in relation to repayment of premium paid in advance and (ii) it has been clarified that EKN will not charge any extension fees
Please note that EKN acknowledges that the base rate for certain currencies has been/soon will be replaced (such as USD LIBOR at the end of June this year). However, EKN has, together with external advisors, concluded that a clear market practice still remains to be established in connection with the application of certain new base rates. Accordingly, EKN has put the related update of the definition “Relevant Base Rate” on hold. As provided for in the last paragraph of the definition in question, EKN will apply an appropriate replacement value for the Relevant Base Rate. Please observe that the definition only refers to interest on amounts to be paid between EKN and the guarantee holder in connection with payment of compensation and recovery.
Further information on the Buyer Credit Guarantee product is available under the link https://www.ekn.se/en/guarantees/banks/buyer-credit-guarantee/.