Guarantees issued by the Norwegian Export Credit Guarantee Agency (GIEK) boosted Norwegian exports by NOK 27 billion in 2016, according to Menon. That has increased employment at export and subcontracting companies by more than 13,000 people. The combined effect on Norwegian wealth creation in 2016 is estimated at NOK 14.7 billion.
STATE AGENCY, COMMERCIAL PARTNER
GIEK is a public enterprise that reports to the Ministry of Trade, Industry and Fisheries. GIEK has its own board and is run as a financial enterprise that issues guarantees on the same conditions as banks.
GIEK is a key partner for exporters and their customers as well as Norwegian and international commercial banks with expertise and robust networks in Norway and internationally.
The guarantees increase the banks’ capacity to provide financing and risk cover for Norwegian export contracts. The guarantees can also reduce Norwegian exporters’ and foreign buyers’ risk of a loss in connection with payment and delivery.
FINANCING, SECURITY AND GREATER PROFITABILITY
The guarantees contribute to higher sales and earnings and lower costs for the export companies. They make purchases from Norway safer for foreign customers, whether before or after delivery. Banks obtain risk cover, a wider product range and good advice.
International competition stimulates development and innovation. When companies win contracts abroad, jobs and growth are created.
Exporters, buyers and banks carry out transactions when GIEK assumes the risk. With GIEK, many export contracts have come to pass that would have been impossible otherwise.