How it works

If things go wrong

When EKF assumes the risks it allows Danish companies to cultivate uncertain and unknown markets. If things go wrong, EKF will pay.

Sanctions put a stop to payments
In autumn 2009 the Danish company DESMI received an order worth almost DKK 35 million for supply of equipment to seven harbours in Iran. It was a huge order for DESMI and as Iran was an uncertain market, the company decided to secure a guarantee from EKF to cover the transaction.

DESMI supplied the equipment which was to be used to confine damages and recover oil in case of oil spill disasters in water,  and DESMI trained the Iranian buyers in the use of the equipment.
 
During the first couple of years, the Iranian customer settled payments as agreed but the payments gradually became more and more irregular. It was, however, a contributory cause that during the same period, the UN gradually tightened the economic sanctions against Iran. This, among others, excluded the country from the international banking system.

The payments came to a halt in 2012. At the time the Iranian customer still owed DESMI approximately DKK 3.5 million.

Fortunately, DESMI had, as mentioned, secured a guarantee from EKF covering 50 per cent of the loss. Thus, in autumn 2013 EKF paid DESMI approximately DKK 1.7 million in compensation.

At the same time EKF assumed the claims towards the Iranian customer. We are still working on finding a solution with the Iranians which would allow them to settle the payments within the frameworks of the international sanctions.
 



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