With this EKN guarantee, the exporter receives compensation for its costs if the customer cancelles the agreement. The lender receives compensation if the borrower does not repay the loan. EKN can cover both small and large scale transactions with this guarantee.
The guarantee for loss on production and loss on claim, with both exporter and bank as guarantee holders, covers both the exporter’s accumulated costs that cannot be invoiced because the buyer has cancelled the agreement and also the bank’s risk that the borrower abroad does not repay what is owed according to the loan agreement. This guarantee provides cover for events that occur from the date on which binding agreements exist for both the lender and the exporter.
|Guarantee against loss on production and loss on claim combined for exporter and bank||2016|