Frequently asked questions about the new Ukraine Facility
Here we collect the most frequently asked questions about our guarantee regulation on export credit guarantees to Ukraine, the "Ukraine Facility".
1. General questions
Who can apply for a guarantee (credit risk insurance)?
Exporter or bank.
Which guarantee product should I apply for?
There are no new specific products for this facility. Guarantee for trade receivables would be used for credit periods not exceeding 12 months. Guarantee for loss on claim would be used for credit periods exceeding 12 months. For banks, it’s the Buyer credit guarantee.
How to apply?
The ordinary application process from April 1st, when the regulation enters into force.
When can I apply?
EKN will accept applications from April 1st, when the regulation enters into force. The application must come to EKN well before the end of 2024. EKN cannot approve applications after December 31, 2024. The applications will be handled in the order they arrive to EKN.
2. Special conditions for guarantee
Which transactions can be covered?
The transaction must promote and target the economic development and welfare of Ukraine. EKN will consult Sida (the Swedish International Development Cooperation Agency) in every transaction to confirm this condition.
The Ukraine facility covers only losses in relation to export of goods to Ukraine.
How do I know if my transaction will be classified as aid?
EKN will consult with Sida in every application to confirm that, prior to approval of offer.
Can EKN guarantee transactions to Ukraine that is not within this facility?
Exporter or bank can already today apply for cover if there is a letter of credit (confirmed or unconfirmed) issued to secure the payment from the Ukrainian buyer. Maximum 360 days deferred payment. This is within EKN ordinary credit risk insurance policy for Ukraine.
What does the guarantee cover?
The risk of non-payment from the buyer. Ordinary conditions apply, with necessary changes due to the short time frame.
What is the maximum credit period?
The funds for losses are only available to the end of 2026. Claims must be paid to the guarantee holder before December 31, 2026, so EKN cannot cover claims falling due after (preliminary) august 2026. If the repayment period in the contract is beyond that date, EKN cannot cover those payments.
What is the coverage?
EKN can cover maximum 80 percent of the guaranteed commitments. Losses will be carried proportionately between EKN and the guarantee holder.
What is the maximum amount?
The total guarantee facility in the [regulation] is 333 million SEK (approximately 30 MEUR). Maximum 100 million SEK (approx. 10 MEUR) per applying company group. This limit per transaction will not apply, if there are amounts available 6 months prior to the end, that is by June 30, 2024.
What is the cost?
EKN will charge the minimum premiums according to international regulations, for a country in the highest country risk category, (country risk category 7 out of 7).
What are the general conditions?
EKN’s general conditions for the applicable products apply, with necessary amendments due to the short time frame.
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