Buyer Credit Guarantee requirements and conditions 

What does a Buyer Credit Guarantee cost?

EKF charges a premium for issuing a Buyer Credit Guarantee. We calculate this on the basis of the overall risk of the specific export transaction. The following parameters are included in the assessment: 

  • Your buyer's credit rating: EKF assesses your customer's credit rating, i.e. the likelihood that the customer will pay. The higher the credit rating, the lower the premium.
  • The political situation in your buyer's country: EKF assesses the risk of political unrest in your customer's country. The lower the risk of political unrest, the lower the premium.
  • Credit period (instead of ): The credit period refers to the number of months the customer will take to repay the loan. The shorter the credit period, the lower the premium.

For transactions in country risk category 0 (the strongest risk category), EKF's premium is determined according to a market-based benchmark.

For transactions in country risk categories 1–7, EKF's premium is determined according to the OECD's premium model.

In addition, the customer pays interest and costs on the loan to the bank. The premium payable to EKF can be included in the financing as part of the loan.

​Who is eligible for a Buyer Credit Guarantee?

EKF issues the Buyer Credit Guarantee to a Danish or foreign bank so that the bank can obtain security for a loan to your customer. Your customer must be from a foreign country. EKF must rate the foreign buyer as creditworthy to issue a guarantee.

How much does a Buyer Credit Guarantee cover?

There are no limits.

How long is the credit period?

The credit period for a Buyer Credit Guarantee is up to:

  • 8.5 years in countries defined by the OECD as high-income countries.
  • 10 years in all other countries.
  • 12 years where power stations are involved (any country)
  • 18 years for renewable energy and water projects (any country). 

If the buyer is from an EU country, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland or the USA, and if the order is for more than 5 million euro, the credit period must be at least two years. (Possibly also for SME Guarantees.)

If the buyer is from any other country, the credit period must be at least six months.


The foreign buyer is normally required to pay at least 15 per cent of the order amount in advance. As a rule, the credit must be granted as a serial loan with principal repayments of equal size plus accrued interest. 

Environmental and social sustainability requirements

EKF produces a risk assessment in regard to environmental protection and human rights based on the IFC's standards and guidelines.

What does EKF cover?

EKF pays compensation if your company or your bank incurs a loss on an export transaction or investment abroad as a result of commercial or political risk.

Commercial risk occurs when your buyer is unable to pay due to liquidation, insolvency or cancellation of the contract, or if the buyer is unwilling to pay. 

Political risk occurs when you do not receive payment for products due to impediments in the country you are exporting to. Such impediments include war (external armed conflict and domestic political violence), currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.

EKF covers up to 95 per cent of the loss, so the bank's deductible is a minimum of 5 per cent.