This guarantee protects against events that occur with effect from the date on which the contract guarantee is issued.
With a counter guarantee the issuer, normally a bank, receives compensation from EKN if the beneficiary requests payment of the contract guarantee. EKN charges a premium that reflects the market price for the risk and costs in the transaction. The premium is quoted as a percentage of the guaranteed amount.
Counter guarantees can cover various types of contract guarantee, such as an advance payment guarantee or a performance guarantee. These are usually of the on-demand type, i.e. the beneficiary does not need to state the reason for the payment request.
The bank can apply for a counter guarantee for different types of transactions associated with the export of goods and services. EKN can also issue counter guarantees for transactions between Swedish companies. This is conditional on the transaction being one that will eventually lead to a Swedish export. This may for example be a delivery from a sub-contractor where the end product will be exported. EKN can cover both small and large scale transactions with this guarantee.
Apply in good time before the contract guarantee is issued, and no later than the same day. You must attach to your application a supplementary form from the exporter/sub-contractor describing the transaction. An application for an offer costs nothing. The guarantee application is made on a form. If the contract guarantee is issued on the same day as you apply or soon thereafter, you may ask for the guarantee to be issued immediately.Apply here
EKN assesses the risks and sends you an offer. The offer states the premium, or in other words what the guarantee will cost you. EKN normally determines the premium based on the bank’s price for the contract guarantee issued and it will reflect market prices.
When the contract guarantee is issued and you wish to have the counter guarantee issued, you notify EKN within 30 days.Download form
EKN issues the counter guarantee and you pay the premium. If the entire premium is paid in advance there is a discount of 10 per cent. If you choose to pay the premium in instalments during the guarantee’s period of validity it is your responsibility to ensure that payments are made in time.
You must inform EKN immediately if you learn of circumstances that increase the risk of a calling of the contract guarantee. If a demand for payment of the contract guarantee is presented and if payment therefore has been made, you must inform EKN in writing immediately. No special form is needed to request compensation. EKN will pay compensation within 30 days after the bank has demonstrated its right to compensation.