New Norwegian export credit organisation operationalNews // July 27, 2012
Earlier this month staff from the former Eksportfinans took up new roles at the organisation that has replaced it, Eksportkreditt Norge (Export Credit Norway), a state-owned company that will provide export financing for Norwegian ships and offshore equipment.
Eksportkreditt Norge will offer competitive, long-term, stable loans financed by the Norwegian state, which will ensures companies’ access to credit in situations where it is not available in the capital markets.
The new company covers the entire lending process including promotion and sales, processing of applications, granting, disbursing and follow-up.
All borrowers meeting Eksportkreditt Norge’s requirements who have payment guarantees from Garanti-instiuttet for Eksportkreditt (GIEK) and/or qualified banks will receive an offer. By year-end, total lending from the company is estimated to be in the region of US$3.5 billion.
Borrowers can choose between two different types of loans:
- government supported loans with a fixed interest set by the OECD – so-called commercial interest reference rate (CIRR) loans, and
- CIRR-qualified market loans (floating rate) on commercial terms.
Both types of loans are in accordance with the OECD arrangement on officially supported export credits. A loan application must be filed before the commercial contract between the supplier and the buyer is signed.
The transition from Eksportfinans to Eksportkreditt Norge was initiated at the end of last year in order to adapt the organisation to the requirements of a decision by the Norwegian government in November 2011 to take over government-supported export financing.
In the new management structure that became effective on 1 July 2012, Martine Mills Hagen has joined the executive management group as executive vice president and director of funding and lending.