Counter gua­ran­tee

EKN’s counter 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 demands 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 expressed as a percentage of the guaranteed amount.

Contract guarantees that can be guaranteed with EKN’s counter guarantee

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, for example, a delivery from a subcontractor where the end product will be exported. EKN can cover both small- and large-scale transactions with this guarantee.

Application

Apply in good time before the contract guarantee is issued, and no later than the same day. A supplementary form from the exporter/subcontractor that describes the transaction must be attached to your application. An application for an offer is free of charge. 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.

Offer

EKN assesses the risks and sends you an offer. The offer states the premium, or in other words what the guarantee will cost you. The premium shall reflect the market price for the risk and costs in the transaction.

It is very important that you read EKN’s General Conditions as well as any supplementary conditions, prior to the issuance of your guarantee, so that you know what is applicable to the guarantee.

Request for guarantee

When the contract guarantee has been issued and you wish to have the guarantee issued, you notify EKN within 30 days.

Guarantee period

EKN issues the guarantee, and you pay the premium during the period of the guarantee. 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.

Calling of the contract guarantee

You must inform EKN immediately if you learn of circumstances that increase the risk of the contract guarantee being called.

You must inform EKN in writing immediately, if a demand for payment of the contract guarantee is presented and if payment therefore has been made. No special form is needed to request compensation. EKN will pay compensation within 30 days after the bank has proven its right to compensation.