GIEK’s internal processing

GIEK needs complete information to be able to process an application. Some is required just to fill out the application form. Additional information may be submitted later, but keep in mind that the review process could become stalled.

When the application is received

Once we receive the application you will be assigned a case officer. A case team with diverse areas of expertise analyses the transaction using the documentation provided as well as its own research and meetings with the customer. The company’s business operations, its cash flow, the market, the buyer’s country and other factors typically enter into the analysis. For buyer credit guarantees, we negotiate with the lender (Export Credit Norway or a bank) regarding sharing of collateral.

Credit assessment

GIEK assesses and approves the transaction’s credit risk. Such a credit check will include assessment of the debtor (normally the buyer of a Norwegian export product) or guarantor (if a loan is being guaranteed by another a debtor, such as a parent company). If the buyer/debtor is a public sector entity (or the state itself), the assessment of the state will be important.

GIEK’s credit assessment extends to other elements as well, including more general characteristics of the country in question (its business climate, for example) and the market in which the debtor operates, including opportunities there.

  • GIEK undertakes a thorough assessment of the guarantee recipient’s debt-service capacity. To do so GIEK employs both credit risk models and cash flow analyses.

  • GIEK’s credit risk models are based on the methodology of a recognised, international rating company. The models contain elements of qualitative and quantitative data, which are weighted differently depending on the model being used.

GIEK’s evaluation of credit risk involves a financial risk assessment, in which several financial ratios are analysed, and a business risk profile assessment that is predominantly qualitative in nature but can be supported by statistics. In the latter assessment, GIEK examines both industry and country risk as well as competitive position.

GIEK has analysts who calculate their own estimates of earnings potential. These figures are used as input when preparing cash flow analyses.

GIEK assesses country risk where appropriate, and in many cases country risk is a decisive factor in premium calculation. During a country assessment we look at the overall payment risk in the country. The assessment includes economic and political factors that affect whether a country can and will respect its international payment obligations. Such factors may include foreign exchange shortages, war, civil war, expropriation, suspension of payments, transfer barriers or trade restrictions (an import or export ban, for example). Other aspects of a country’s ability to pay, including broad economic developments, are also assessed.

Offer of guarantee and premium indication

If the application is received positively, GIEK will make an offer of guarantee. The offer spells out GIEK’s requirements and conditions for assuming risk and how much the guarantee will cost the customer (the premium). The premium is determined on the basis of the repayment period, and is also affected by:

  • Customer creditworthiness: GIEK assesses customer creditworthiness, i.e. the probability of repayment by the customer.

  • Political conditions in the buyer’s country: GIEK assesses the risk of political unrest arising in the foreign buyer’s country.

Buyer credit guarantee

If the application concerns a buyer credit guarantee, and if a bank or Export Credit Norway has issued a term sheet for a loan transaction, GIEK’s offer of guarantee will refer to the term sheet and the relevant conditions included there. The offer to guarantee a portion of the loan is made to a bank or to Export Credit Norway. The risk of the remaining loan amount must be borne by the lender itself. It may be necessary for another bank, acceptable to GIEK, to cover this risk.

With an offer of guarantee in place, Export Credit Norway or the bank providing the loan will usually take a few weeks to prepare the final loan agreement to which the guarantee is linked. Often, the lender will seek outside legal assistance – Norwegian or foreign, depending on choice of law. Like the lender and other participants in the transaction, GIEK participates in the loan agreement negotiations, and must approve the agreement in the end. GIEK is not a party to the loan agreement.

Obtain an estimate using our premium calculator for the buyer credit and supplier credit guarantees.

Other guarantees 

It is free to apply and to have the application processed. If you take up our offer of guarantee, GIEK charges a premium. This payment is determined on terms equal to those of   banks and other financial institutions participating in the same transaction. If the banks charge additional fees, GIEK’s charge will reflect these. The intent is to ensure that GIEK does not compete with the banks on price.


GIEK issues the guarantee

Before issuance, the guarantee recipient must first accept the offer of guarantee and then request that the guarantee be issued. For the issuance to go forward GIEK must also receive the signed exporter and corruption declarations, and an agreement must be concluded with any other loan guarantors. Issuance of the guarantee is usually a condition (condition precedent) for disbursement of the loan.

When the loan agreement is fully formulated and finally approved by GIEK, and the loan is ready for disbursement, GIEK issues the final guarantee.


Application rejected?

GIEK rejects an application if our conditions are not met. The contract’s Norwegian content, for example, may be too low (too little value creation in Norway) or the risk of default may be too high. Perhaps it has been determined that ethics and/or sustainability issues have been insufficiently addressed.

In any case we do not explain the basis for a rejection to the applicant, and the decision cannot be appealed.

Remember that rejection may apply to one specific contract – you can always apply again later.


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GIEK will evaluate the documentation provided by the client, as well as conduct its own assessment of potential risks and negative impacts related to the transaction in question. Our assessment of projects are based on applicable local law and regulations, and relevant international standards, the most important being the International Financial Corporation (IFC) Performance Standards and Core ILO Labour standards.

Clients should be aware of potential environmental, social and human rights risks within their own operations and within the projects there are involved in. It is expected that they have conducted their own due diligence to identify potential risks and impacts, and have documented how they intend to prevent, mitigate and remediate these.