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Calculate your premium

Here you can get an indication of the premium for EKN’s guarantee for loss on claim.

Please contact us by calling +46 8-788 00 00 or e-mailing for short-term credits to high-income countries, price information for our other guarantees or for a more precise premium indication.

For credit periods over 12 months these fields can be filled in for a more accurate calculation

Risks and premiums

EKN’s risk assessment has two main components – assessment of political risk (country risk assessment) and assessment of commercial risk.

Under the current conditions, with convertible currencies and deregulation in most places, economic problems at country level can give rise to substantial currency and interest volatility with consequent negative impacts on companies. This is why credit risk assessment is conducted by a credit analyst in close collaboration with a country risk analyst.

Lower your transaction premium

The risk level in a transaction determines the premium EKN takes out. As a guarantee holder, there are many ways in which you can reduce the risk in a transaction in order to lower the premium for EKN’s guarantee.

If you agree to provide additional collateral in the transaction, this can reduce the uncertainty in the transaction. If this results in a clear risk improvement, EKN may offer you a lower premium for your guarantee.

Pledged assets, reservation of title and sureties are all examples of additional collateral.

Contractual terms and conditions that lower risk

It may also be possible to reduce the premium in the guarantee by agreeing on certain terms and conditions in the contract that is to be guaranteed. These may include:

  • Higher advance payment.
  • Shorter credit period.
  • Your acceptance of a higher excess in EKN’s guarantee.
  • Use of an EKN guarantee for only part of the transaction period.

Accepting a higher excess and/or a shortened guarantee period directly affects the premium rate in your EKN guarantee.

Please contact us if you are unsure how to affect the premium in your transaction and we can suggest possible solutions.

Premium matrix: loss on claim guarantee, credit periods exceeding 12 months

For transactions with a credit period exceeding 12 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 per cent (basis 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 credit rating, but also by the amount, the transaction structure and the collateral offered. Depending on the amount and the structure, the premiums for two transactions involving the same company can therefore be set differently.

Transactions with a risk period exceeding 24 months are regulated by an OECD agreement. EKN’s pricing could be limited by a minimum premium in accordance with this agreement. For country risk category 1–7, a risk-reflected premium is set. For country risk category 0, market pricing is applied as the floor.

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 sector borrowers can be placed in any category.

A Central bank/Ministry of Finance or companies with the same credit rating as the state (requires the same or better credit rating than the state)

B Central government agencies and ministries, state owned banks, top-rated banks and companies

C Very strong companies, normal banks, other public debtors

D Medium-strong credit rating

E Relatively weak credit rating, under average

F Weak credit rating

Country risk category 0–7/Debtor category A–F


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About country risk assessment

For each guarantee application, EKN makes an assessment of the risk of non-payment in the associated transaction. This is how it works.

About country risk assessment

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