Skip to content

Commercial Interest Reference Rate (CIRR)

Export credits are the most common form of transaction financing when the buyer’s investments entail long repayment periods. SEK offers export credits at both a fixed (CIRR) and floating interest rate.

CIRRs allow exporters’ customers to receive financing at a fixed interest rate for the entire credit period. The CIRRs are updated on the 15th of every month.

The interest rates are published by the OECD and on our website. It is free to apply for a CIRR. You can choose not to use the CIRR when the loan agreement is to be signed, you could consider a cost-free interest-rate cap.
Export credits and CIRRs comply with Consensus, the OECD’s guidelines to ensure that individual countries do not unfairly favor their own export industry. The CIRR system is governed by EU regulations and national Swedish regulations.

If market interest rates rise during the negotiating period, the CIRR offer may become very attractive and provide exporters with additional support in winning an export order.

In Sweden, SEK administers the state supported CIRR system. In simple terms, this means that the exporter can offer its customer a fixed interest offer (CIRR), which is valid for four months. During these four months, commercial contracts must be signed. Once the contract is signed, the borrower (the exporter’s customer) has a further six months within which to sign a loan agreement.

It’s an advantage for the exporter and the exporter’s customer to know what the interest expense may be. If market interest rates rise during the negotiating period, the CIRR offer may become very attractive and provide exporters with additional support in winning an export order. If interest rates fall, the exporter’s customer can choose to finance at market interest rates instead, but has had a cost-free interest-rate cap for the negotiating period, which can extend for a long time in this kind of transaction.

In addition to the CIRR, EKN’s premium will be added as well as the banks’ margin and fees to the cost of financing.

The CIRR system has, since 1990, generated a considerable surplus for the Swedish government.

Search