A contract guarantee protects the exporter against losses that may arise during the production period, before delivery, in the event contracts are not carried out or fulfilled by the buyer due to bankruptcy, insolvency or political events. The guarantee is most appropriate in cases where the item to be delivered is customised and therefore difficult to sell to other buyers than the original.
Who can apply?
The exporter submits the application to GIEK.
What does the guarantee cover?
GIEK covers final losses, not profits. GIEK will become a party to the claim against the buyer.
- The guarantee may apply to the foreign buyer’s inability or unwillingness to pay (commercial risk). GIEK guarantees up to 90 per cent of the supplier’s own costs.
- The guarantee may apply to amendments to laws or to events in the buyer’s home country that make it impossible to carry out payment (political risk).
- The guarantee covers direct and indirect costs the exporter has incurred up until the breach of contract.
How does the guarantee work?
How much does it cost?
GIEK charges a premium upon issuing a guarantee.
The premium amount is determined on the basis of the repayment period, and is also affected by:
- Buyer’s 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 a foreign buyer’s country.
How to apply?
Please fill inn the contract guarantee application form (in Norwegian).
Do you want to be prepared before you begin the application process?
We have collected all the questions you will get during the application process:
Contract guarantee (in Norwegian).
FAQ about the application forms.