Foreign Trade and Investment Promotion Scheme

Foreign Trade and Investment
Promotion Scheme

Realising business abroad with the support of the Federal Government of Germany

Strengthening the German economy in its activities abroad

Export Credit Guarantees, Investment Guarantees and Untied Loan Guarantees have been established and effective foreign trade promotion instruments of the Federal Government for decades.

Export Credit Guarantees (so-called Hermes Cover) protect German exporters and banks financing exports against political and commercial risks. Untied Loan Guarantees are to support raw material projects abroad regarded as eligible for promotion by the Federal Government. Investment Guarantees hedge eligible German direct investments abroad against political risks that may occur.

This three promotion instruments play an important role in fostering economic growth as well as in protecting and creating jobs. Federal Government commissioned Euler Hermes Aktiengesellschaft to manage the federal funding instruments Export Credit Guarantees and Untied Loan Guarantees. The Guarantees for Direct Investments Abroad are managed by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft.

One particular target is the promotion of small and medium-sized enterprises. Ensuring equal opportunities in international competition also means not losing sight of the sustainability of foreign activities.

Information on other foreign trade promotion instruments of the Federal Government can be found at

www.bmwk.de

The promotion scheme at a glance

Export Credit
Guarantees

Export Credit Guarantees (so-called Hermes Cover) protect export transactions, in particular in difficult and high-risk markets, against a payment default for commercial / political reasons.

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Untied Loan
Guarantees (UFK)

Untied Loan Guarantees support the external financing of raw materials projects abroad which are eligible for cover and secure the supply of the German industry with raw materials.

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Investment Guarantees

Investment Guarantees protect direct investments of German companies in emerging markets and developing countries against political risks.

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Find out more about the ...

Federal Export Credit Guarantees

More information about securing your export business.

Export protection at a glance.

With the export credit guarantee scheme the Federal Government offers an efficient instrument for the promotion of foreign trade because it

makes it possible to open up difficult markets
offers protection against non-payment
makes export financing easier
creates a level playing field in international competition
supports also small and medium-sized enterprises
preserves jobs in Germany

Find out about the latest news on export promotion, meet the export community at our or partner events and get in-depth knowledge about the development of the Guarantee Instrument in the annual report.

Federal United Loan Guarantees

More information about securing your raw material projects.

Raw material hedging at a glance.

United Loan Guarantees support projects abroad which are eligible for cover or in the particular interest of the Federal Republic of Germany – especially projects designed to secure the supply of raw materials for Germany.

United Loan Guarantees offer you as creditor protection against the loss of covered receivables due to

commerial risks:

insolvency of the borrower
protracted default

and political risks:

state intervention, war and warlike events
non-conversion/non-transfer of local currency amounts

Get informed about the latest news on commodity hedging, meet us at our or partner events and get in-depth knowledge about the development of the Guarantee Instrument in the annual report.

Federal Investment Guarantees

More information on hedging your direct investments abroad

Investment hedging at a glance

Investing abroad may expose investors to an uncertain political environment. These political risks are neither predictable nor avoidable by investors.

Investment Guarantees protect foreign direct investments against:

nationalization
expropriation-like acts
war, civil unrest
payment embargoes and moratoriums
convertibility and transfer risks

Eligible for cover are direct investments irrespective of their size:

equity participations
investment-like loans
endowment capital and other rights qualifying as assets

Find out about the latest news on state support for direct investments abroad, meet the investor community at our events or partner events and get in-depth knowledge about the development of the guarantee instrument in the annual report.

In the Film

Explanatory films and flyers

How Export Credit Guarantees protect you from payment default

In the explanatory film you can find out more about the so-called Hermes covers

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Securing raw material supplies – win-win for all stakeholders

German buyers, lenders and foreign sponsors benefit from the Federal Government's Raw Material Strategy.

What are Direct Investment Guarantees?

Explanatory film about the Investment Guarantees of the Federal Government to protect against political risks in foreign investments.

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Combined use of cover instruments

In many cases exporters become investors abroad. Frequently, not only marketing and service companies but also production lines are set up in the importing country. It is therefore possible to apply for state guarantes to be used together.

Market development programme
for small and medium enterprises

The benefits for you

With its Market Development Programme, the Federal Ministry for Economic Affairs and Climate Action offers small and medium-sized enterprises events and trips to help them expand into international markets.