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.
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 |
40 25-70 |
100 70-130 |
170 130-240 |
330 240-500 |
|
1 |
Standard Intervall |
MPR-10% -10% |
MPR 15 |
20 15-30 |
45 30-80 |
110 80-140 |
180 140-250 |
340 250-500 |
2 |
Standard Intervall |
MPR-10% -10% |
MPR 20-30 |
45 30-60 |
75 60-100 |
130 100-160 |
200 160-270 |
360 270-500 |
3 |
Standard Intervall |
MPR-10% -10% |
MPR 45-65 |
75 65-90 |
120 90-140 |
165 140-195 |
220 195-300 |
380 300-500 |
4 |
Standard Intervall |
MPR-10% -10% |
MPR 80-120 |
140 120-155 |
165 155-180 |
190 180-240 |
260 240-320 |
400 320-500 |
5 |
Standard Intervall |
MPR-10% -10% |
MPR 120-160 |
185 160-200 |
215 200-230 |
240 230-280 |
300 280-365 |
420 365-500 |
6 |
Standard Intervall |
MPR-10% -10% |
MPR 160-225 |
240 225-245 |
260 245-280 |
300 280-320 |
345 320-390 |
440 390-500 |
7 |
Standard Intervall |
MPR-10% -10% |
MPR 200-285 |
300 285-310 |
315 310-340 |
360 340-390 |
425 390-440 |
460 440-500 |
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 |
Web page last updated 28 Jul 2022