Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure NO-1960-1/2551 – measures in Norway
|Country||Norway , applies nationwide|
|Time period||Open ended, started on 01 January 1960|
|Context||Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Measures related to foreign trade
|Author||Aasmund Arup Seip, FAFO and Eurofound|
|Measure added||23 June 2022 (updated 08 November 2022)|
The Norwegian Export Credit Guarantee Agency (GIEK) reduces the risk of losses for Norwegian exporters and foreign buyers of Norwegian exports. GIEK is a public enterprise under the Ministry of Trade, Industry and Fisheries. The aim of GIEK is to promote Norwegian export by providing guarantees on behalf of the Norwegian state. Buyers often depend on taking up loans or seek other kinds of financing for making investments in goods and services, and having a guarantee is often essential to get loans. GIEK can provide such guarantees in cases where goods and services are purchased from Norwegian suppliers, or where an export transaction is considered to be profitable and creates value for Norway.
GIEK was founded in 1960, and in 2021 it was replaced by Eksfin.
GIEK works as a supplement to the commercial banking market. Guarantees are provided on commercial terms. GIEK offers different schemes including: schemes for buyers and suppliers, a special scheme for the ship-building industry (for bank loans needed when building a ship), one for industrial companies' agreements to purchase electricity (guarantees for long-term contracts), a scheme for investments abroad and a scheme for the cost of tenders submitted to developing countries.
GIEK forms a part of the public policy system for promoting export of Norwegian goods and services, along with Export Credit Norway, Innovation Norway and GIEK Kredittforsikring.
In September 2020, the government instructed that GIEK and Export Credit Norway are to be merged to one agency, effective from 1 July 2021 at the latest. The goal is to increase efficiency and make the system less complex and easier to navigate for its users.
The new website is located at www.eksfin.no .
GIEK is wholly owned and funded by the national government. Some examples include Kongesberg Maritime and Skeie.
GIEK had 468 current guarantees with a total NOK 89 billion (€8.3 billion) in outstanding guarantee liabilities at the end of 2019; most in the oil and gas industry. In 2019 GIEK issued 178 new guarantees with a total value of NOK 22 billion (€2 billion).
An evaluation of national support measures (Deloitte 2019) argued that one single actor should have the roles of today's ECN an GIEK to improve efficiency.
Menon Economics evaluated the effects of GIEK in 2016. The report concluded that the agency contributed to realising export for more than NOK 27 billion (€ 2.8 billion) in 2016. The effects are higher in Møre and Romsdal and Oslo.
GIEK was evaluated in 2008, see Evaluering av GIEK The conclusion was that GIEK had both contributing to contracting and increasing the total volume of Norwegian export.
GIEK meets guarantees need, especially for those exporting to more unsteady countries, and for SMEs. GIEK is especially important in cases of instability in financial markets.
The 2008 evaluation pointed to some adjustments including the level of guarantees. GIEK only gave a maximum of 90% coverage, and the evaluation report suggested that this was raised to 100% where the guarantee is less than NOK 15 million (€1.9 million).
The 2008 evaluation report also pointed at the risk that GIEK is taking when issuing guarantees. The portfolio is to a large extent directed to oil and gas and ship industry, making it vulnerable if those industries face difficult times.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), GIEK, measure NO-1960-1/2551 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-1960-1_2551.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.