Background information

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.

Content of measure

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.

Use of measure

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.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 01 January 2008: Econ (2008), Evaluering av GIEK, Econ-report no. 2008-060. (www.regjeringen.no)
• 01 February 2017: Fjose S., Ruge, I.A., Eide, L.S.., Høiseth-Gilje, K. (2017), Giek sine ringvirkninger. Hvor stor effekt har GIEK på sysselsetting og verdiskaping? Menon Economics. (www.giek.no)
• 04 November 2019: Deloitte (2019) Evaluation of business support instruments (www.regjeringen.no)
• 01 December 2019: Annual report 2019 (www.giek.no)