Swedish export credit agency EKN has closed for cover of transfer risks in credits with longer tenors than 12 months in Ethiopia.

The last year’s decreased overseas development assistance to Ethiopia has increased the vulnerability of the economy, it claims.

Furthermore, EKN has established a new policy for credits to Cape Verde. Restrictive assessment applies to credits to the sovereign. A state guarantee is required for credits to other public entities than sovereigns.

For banks, normal risk assessment applies to short-term credits, while a restrictive approach is applied for medium and long-term credits. When it comes to corporates EKN can cover medium-term credits; a restrictive assessment is applied. For short-term business, the country risk class is 4 applied and for medium and long-term business country risk class 6.