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Note: Dickon Harris examines how Nordic export credit agencies are reacting to the first steps of a global recovery.
Despite a severe drop in the total number of exports, export credit agencies (ECAs) in the Nordic region have been experiencing record volumes during the last 18 months. Last year Norway's GIEK issued a record number of guarantees while Sweden's EKN reported an astonishing 800% increase in its guarantees closing more than 1,400 transactions. Denmark's EKF too guaranteed DKK13.7 billion ($2.25 billion) worth of business last year, more than double the amount it did in 2008.
This dramatic rise in ECA-backed volumes has been caused largely by the expanded mandates and increased limits of Nordic ECAs in response to the global financial crisis. EKN's dramatic rise, for instance, can be partly explained by the fact that its new working capital guarantee scheme, previously open to just small and medium-sized enterprises (SMEs), was expanded two years ago to include large corporates. The large volumes also reflect the growing flexibility of ECAs in their response to the crisis. SEK has signed an agreement with both Sparbanken Gripen and Northstar...