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Guarantee scheme

The Federal Republic of Germany may grant guarantees for eligible foreign direct investments of German entrepreneurs by protecting them against political risks. The budgetary responsibility for this guarantee scheme lies with the German government.

An Interministerial Committee (IMC) decides on basic issues of cover policy and the granting of guarantees. The IMC is composed of the Federal Ministry of Economics and Labour - lead function -, the Federal Ministry of Finance, the Federal Foreign Office and the Federal Ministry for Economic Co-operation and Development. Besides the representatives of these four ministries, PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (PwC AG) experts attend the meetings of the IMC in an advisoring capacity as well as experts from industries, the banking sector and various business associations, thus ensuring decisions which are in line with practical investors' needs.

From the first investor contact to the ultimate payment of an indemnification PwC AG is responsible for handling the guarantee scheme. PwC AG experts advise investors on eligibility issues to be considered in the planning stage, accompany the application process and evaluate the investment project by assessing feasibility, eligibility and risks. After the IMC decision they arrange for the issuance of the guarantee policy and for a regular monitoring, initiate loss prevention strategies and carry through eventual indemnification proceedings.

In addition, PwC AG experts observe general developments in connection with the investment scheme, keep in close touch with the business community and advise the German government on any measures to develop the guarantee scheme and improve the guarantee procedure.

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