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 5 Jan 2021