If a Danish company invests in a company abroad, EKF can cover the risk of the company losing its equity or being unable to service its loan from a bank outside of the country of investment. The guarantee provides cover in circumstances such as the following:
• The outbreak of war (external armed conflict and domestic political violence) which prevents business operations from continuing. Or the company's assets are destroyed.
• The national authorities take control of the company by expropriation, nationalisation or other interventions.
• It becomes impossible to transfer the company's money out of the country.
The investment guarantee does not cover loss due to terrorism, devaluation or new general taxes in the country. The guarantee does not cover any loss attributable to the company's normal operations.