Down payment requirement for export credits to low and middle-income countries now lowered to 5%

A down payment of 15% is normally required when sovereign and public buyers from all over the world make use of export credits from an OECD country, however, the OECD member countries have now agreed to temporarily lower the down payment requirement to 5% for sovereign and public buyers in low and middle-income countries.

11/16/2021

The relaxation of down payment requirement for sovereign and public buyers will benefit countries where the COVID-19 crisis, among others, has put public budgets under pressure.

With the extended possibility of obtaining financing, it will be easier for the low and middle-income countries to continue to invest in their planned extension of infrastructure projects and possible crisis prevention projects.

As of 5 November 2021 EKF will be able to cover up to 95% of the export contract value, when the buyer of the Danish equipment is a public institution and subject to EKF´s approval from a credit point of view. It is a requirement that the Ministry of Finance is either the lender or the guarantor of the transaction.

The agreement will be applicable for 12 months until and including 4 November 2022 after which EKF again will be able to cover maximum 85% of the export contract value. Application for EKF coverage must therefore be received by 4 November 2022 at the latest. The deadline for issue of a guarantee based on the lower down payment requirement is 18 months after 4 November 2022.