The Norwegian Export Credit Guarantee Agency (GIEK) is a public enterprise under the Ministry of Trade, Industry and Fisheries (MTIF), and issues guarantees on behalf of the Norwegian state.

GIEK’s mandate is to promote Norwegian exports, ensure Norwegian value creation and serve as a good financial partner and adviser for Norwegian exporters by issuing guarantees on behalf of the state. GIEK is a supplement to the commercial banking market, with financial results that will break even over time.

GIEK’S guarantees are adapted to the needs of Norwegian export companies and foreign buyers, covering both political and commercial risk on loans issued by commercial banks or Export Credit Norway. Guarantees can be provided where Norwegian goods or services are delivered abroad, or where an export transaction in some other way promotes Norwegian value creation. GIEK guarantees for export to countries across the world, and increases the competitiveness of Norwegian goods and services in the international market.

Types of guarantees

Buyer credit guarantee

GIEK provides lender’s guarantees when a foreign purchaser asks its bank, Export Credit Norway or another financial institution for a loan to pay for Norwegian export goods or services.

Supplier credit guarantee

GIEK issues guarantees to ensure that the exporter is paid at the agreed time. The guarantee is triggered if the purchaser goes bankrupt or experiences payment difficulties.

Contract guarantee

A contract guarantee protects the exporter against losses during the pre-delivery production period when the purchaser fails to perform the concluded contract due to bankruptcy, insolvency or political events. The guarantee is most appropriate in cases where the delivery is tailored to the purchaser’s specification and thus difficult to sell to anyone except the original purchaser.

Investment guarantee

GIEK issues guarantees for Norwegian investments abroad, covering the risk of expropriation, acts of war, civil unrest and similar developments (political risk). The guarantee is therefore appropriate for countries characterized by significant political unrest and unforeseeability.

Tender guarantee

The tender guarantee is designed to make it easier for Norwegian exporters to participate in competitive tenders for aid-funded projects in developing countries. If the Norwegian exporter fails to win any part of the contract, some of the tender costs are reimbursed. The scheme is funded by Norfund and administered by GIEK.

Bond guarantee

Foreign purchasers sometimes request one or several guarantees from a Norwegian exporter, for example guarantees that delivery will in fact occur as agreed, that a pre-payment will be repaid if the exporter breaches the contract, or that a power plant will function as specified after delivery. Although such bond guarantees are issued to the purchaser by the exporter’s bank, GIEK may take on part of the total amount to ease the burden on the bank (a counter-guarantee).

Letter of credit

GIEK provides guarantees for confirmed letters of credit issued in connection with exports of Norwegian goods and services from Norway. GIEK’s guarantee is issued to the bank, and covers part of the total amount (a counter-guarantee).

Building loan guarantee

A building loan guarantee secures building loans issued to Norwegian shipyards or manufacturers of installations at sea, such as offshore wind foundations. Such guarantees can also be issued in connection with substantial sub-deliveries. The guarantee supports the shipyards’ ability to secure competitive financing of the building cost accrued through the construction period of a new building. The building loan guarantee is cancelled upon the buyer’s payment to the shipyard or manufacturer upon delivery of the vessel or installation.

Energy guarantee

Industrial companies with substantial electricity requirements may need to conclude long-term electricity contracts at a foreseeable cost. The energy scheme was established in 2011 to help industrial companies to secure such contracts. GIEK offers different guarantees in connection with the conclusion of contracts for the supply of electricity to energy-intensive industrial companies.

To learn more about GIEK’s guarantees and to apply for them, please visit GIEK’s website .