A dispensation from the EU allows EKF to cover business transactions with a risk period between 181 days and 2 years in countries within the EU/OECD. The risk period covers both the credit period and the construction period. A similar dispensation covering countries outside the EU/OECD is already available.
In order for EKF to offer coverage, business transactions within the EU/OECD would normally require credit terms of minimum two years. This is to ensure that national export credit schemes do not compete with the private credit insurance market. However, according to many companies the private credit insurance market rarely covers business transactions with credit terms above 180 days. Thus, the EU has accepted that EKF steps in when the private credit insurance market either cannot or will not cover the risk.
The dispensation applies to both small and medium sized companies with single buyer one-off export contracts of up to EUR 5 million. The dispensation does not apply to ongoing business.
The price of the guarantees will have to follow the EU so-called Safe Harbour rates. In practice this means that the price will be approximately 2.3 per cent pro annum. However, in a few particularly sound business transactions, a charge of approximately 0.4 per cent pro annum will be sufficient. On top of this, the companies will have to pay an administration fee of EUR 150 (approximately DKK 1,125) to EKF per transaction.
The dispensation becomes effective immediately and expires at the end of 2015.