The premium is determined on the basis of repayment period, and is also influenced by such factors as:
Buyer’s creditworthiness: GIEK assesses customer creditworthiness, i.e. the probability of payment by the customer.
Political conditions in the buyer’s country: GIEK assesses the risk of political unrest arising in a foreign buyer’s country.
In certain cases GIEK also charges an upfront fee and a commitment fee.
The premium calculator’s indication is most accurate for countries with somewhat elevated risk (applies to buyer credit and supplier credit guarantees).