Your SlideShare is downloading. ×
0
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Export Financing, Anja Pakkala, Finnvera
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Export Financing, Anja Pakkala, Finnvera

351

Published on

Finland - Nigeria Business Seminar and Finance Workshop 10.12.2012

Finland - Nigeria Business Seminar and Finance Workshop 10.12.2012

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
351
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Finland-Nigeria Business Seminar December 12, 2012Export FinancingAnja PakkalaSenior Adviser, Sub-Saharan Africa
  • 2. Finnvera› Specialized financing company owned by the government of Finland› Guardian authority Ministry of Employment and the Economy› Promotes the competitiveness of Finnish enterprises› Finnvera and its subsidiary Finnish Export Credit Ltd – status of the official Export Credit Agency (ECA)11.12.2012
  • 3. Finnvera plcA specialised financing company owned by the State ofFinland – promoting the competitiveness of Finnishenterprises SME financing Export financing Loans, domestic guarantees, Export credit guarantees, venture capital investments financing of export credits, interest equalisation11/12/2012 3
  • 4. Risks covered› Political risk › Restrictions on currency transfers or currency change › Insolvency of a State › Expropriations › War, insurrection or some other state of emergency› Commercial risk › The buyer’s inability or unwillingness to pay11/12/2012 4
  • 5. International cooperationFrame of reference for export credit guarantees – creation anddevelopment of common principles WTO OECD EU The Arrangement State aid rules Self-sustainability Environmental and Social Due Directive on medium/long-term Diligence guarantees Anti-Bribery Measures Communication on short-term Sustainable Lending export-credit insurance Paris Club Berne Union Cooperation between export credit Informal group of official creditors agencies Equal treatment of creditors Best practices for export credit and investment insurance Exchange of information11.12.2012 5
  • 6. Finnvera cover policy in NigeriaCountry category: 5 out of 7Cover policy: flexible cover policy depending on the › size of transaction › maturity profile › quality of the buyer, borrower, guarantorCurrently no exposure.Experience is good, but limited.11/12/2012 6
  • 7. Finnvera services› Finnish/International bank as a financier › Letter of Credit Guarantee › Insurance for a Bank confirming a Letter of Credit › The L/C must be irrevocable and conform to the rules issued by the International Chamber of Commerce (ICC) › Buyer Credit Guarantee › Particularly used to finance purchases of capital goods › Covers credit risks caused by the Borrower and the Borrower’s country› Credit insurance to exporters › Export receivable guarantee11/12/2012 7
  • 8. Letter of Credit Guarantee Delivery contract Exporter Buyer With a requirement of an irrevocable L/C as a term ofConfirmation of an L/C Request to issue an L/C payment Confirming bank Issuing Bank Request to confirm an L/C Letter of Credit Guarantee Finnvera 11.12.2012 8
  • 9. Buyer Credit Guarantee -if the repayment period is two years or longer Credit funds 85 % Exporter Lender Delivery Cash payment Buyer Credit 15 % Guarantee Buyer Credit Foreign Buyer/ Finnvera Buyer’s Bank 11.12.2012 9
  • 10. Commitments by region, 30.6.2012Total 11.0 MEUR 11,9 9% 12,8 2,0 14% Asia CIS 41% Central and Eastern Europe Latin America 4% 19,7 Middle East, North Africa Sub Saharan Africa 40,2 Industrialised countries 20% 3% 9% 9,4 4,011.12.2012 10
  • 11. Commitments by sector 4,000 3,500 3,000 2,500MEUR 2,000 12/2010 12/2011 1,500 6/2012 1,000 500 0 11.12.2012 11
  • 12. 15 largest markets 30.6.2012 1,800 1,600 1,400 1,200 1,000 800MEUR 600 400 200 0 Commitments Offers 11.12.2012 12

×