Content

 

Again numerous awards for Federal Export Guarantees

8 May 2009

  • Ten projects covered under Federal Export Guarantees received awards
  • German export credit guarantees scheme confirms its leading position
  • Exports to developing and newly industrialized countries promote development

Ten projects which were covered with Federal Export Credit Guarantees last year were awarded the title "Deal of the Year 2008" by the British Trade Finance magazine. Hence, the state export credit guarantee scheme once again tops the international list. Euler Hermes Kreditversicherungs-AG and PriceWaterhouseCoopers are managing the state export credit guarantee scheme on behalf of the Federal Government.

"The state export credit guarantee scheme shows its strength especially in a difficult economic environment," stresses Dr. Hans Janus, Member of the Board of Management of Euler Hermes Kreditversicherungs-AG. "It is a question of reliable and sustainable cover for projects which are of considerable importance both for the exporters and the investors abroad." Quite frequently, these are pioneering projects for the further economic development of a country, such as for example measures to improve the infrastructure.

The British magazine singles out the most important projects in export and financing each year. 56 of the transactions completed in 2008 were classified as excellent; among them ten transactions which were made possible through Hermes Cover.

In the past five years more than Hermes-covered 35 projects were awarded the title "Deal of the Year". In addition, the German export credit guarantee scheme won the prize "Best Export Credit Agency" already four times in the past. This proves the enormous international competence in handling export financing and insurance since in many cases negotiations have to be conducted with big joint ventures formed by suppliers, banks and investors.

Last year export business worth about 20.7 billion Euros was covered with export credit guarantees. This is the second highest value in almost 60 years. Deliveries to newly industrialized countries, developing countries and countries in transition account for 17.3 billion Euros of the total value and thus 83.3 percent of the exports covered. The list of the top ten countries is headed by Russia (EUR 2.9 billion), followed by the USA (EUR 2.0 billion), India (EUR 1.6 billion) and Turkey (EUR 1.5 billion). Moreover, a profit (EUR 413 million) was generated for the tenth time in a row, which was passed on the federal budget accounts.

The export credit guarantees (Hermes Cover) have been the most important instrument of the state export promotion scheme in Germany since 1949. The protection from bad debt losses for commercial and political reasons is a central issue especially in connection with supplies to difficult and risky markets.

top

 

Footer