Export Credit Guarantee

When a bank finances capital good exports, it will need funding. It may use its own resources but will often obtain external funding.

Sufficient funding isn’t always available from the interbank market however. Furthermore, the cost of funds on the interbank market may be so expensive that export finance would be unprofitable. Sometimes other capital market parties such as institutional investors are prepared to provide funding for export finance. They can then either take over or refinance the export credits granted by banks. In order to protect these financiers or refinanciers from the risk of default, the Dutch State is prepared to issue them an irrevocable payment guarantee. This gives them absolute certainty of recouping their investment plus interest on time. The guarantee is called the Export Credit Guarantee. Atradius Dutch State Business, acting on behalf of the Dutch State, can issue an Export Credit Guarantee to investors in conjunction with an export credit insurance policy for the bank.


Dutch export bank guarantee from Atradius Dutch State Business


What is the purpose of the Export Credit Guarantee?

The purpose of the Export Credit Guarantee is to enable banks to obtain funding on competitive terms and conditions for financing Dutch export transactions. The guarantee is irrevocable, hence the financier’s or refinancier’s risk of non-payment is fully covered.

How does it work?

The premium for the guarantee, to be paid in addition to the premium for the credit insurance policy, is calculated by taking into account the weighted average life of the loan (wall) and the external letter rating of the export bank (at least S&P BBB-). We assume that the insured percentage for political risk is 98% and for commercial risk 95%.

In case cover percentages do deviate from above the premium will be adjusted.

The premium will be charged upfront, is payable in the currency of the export loan and the nominal value of the ECA covered export loan is used as the relevant basis.

The bank providing the export credit will apply for the guarantee with Atradius DSB. We will assess the bank’s ability to repay the external funding it obtained to finance the export credit in the event its borrower defaults on the export credit. If Atradius is prepared to issue the guarantee - which we will confirm in writing to the bank - the bank can approach investors (financiers or funders) to raise funding for the export credit. These investors will be certain of having their funding repaid by Atradius DSB (acting on behalf of the Dutch State), should the bank is not able to do so. As the Dutch State has the highest credit rating, this guarantee will increase the bank’s chances of raising the required funding. The guarantee may be issued to an investor which is to purchase the export credit granted by the bank or to an investor which is to grant the bank a separate loan. The former type of funding is known as a loan transfer, the latter as refinancing.  

We will assess the bank’s ability to repay the external funding it obtained to finance the export credit in the event of default by its borrower.


Please click the links below for the documentation for the ECG transfer scheme and the ECG refinancing scheme. The documentation includes:

  • a more detailed description of the facility, under “Main Features of the ECG” 
  • the text of the guarantee for investors providing bank funding for export finance
  • the standard agreement between the bank and Atradius DSB, acting on behalf of the Dutch State, for the issue of the guarantee
  • the ECG application form

Questions or advice?

Please contact an advisor of Atradius Dutch State Business via  +31 (0)20 553 26 93 or  info.dsb@atradius.com.


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.