International cooperation creates a level playing field
The German export promotion schemes are integrated into in a tight network of international rules and agreements.
Since 1978, the OECD-Consensus, which is binding on all OECD countries, has set common minimum standards for export credits that are supported by a state export credit agency or with public funding. The objective is to ensure that competition is driven by the price and quality of the export products and not by the scope and conditions of state support.
The Consensus covers all state-supported export credits with a minimum repayment term of two years. It does not apply to exports of military equipment and agricultural produce.
It defines minimum requirements for credit periods, repayment profiles, down-payments, the inclusion of local costs as well as premiums and minimum interest rates for cover of political and commercial risks. The country risk classifications in the OECD are also harmonised.
Besides, the OECD Consensus defines the demarcation line between commercial export credits and trade-related development aid cedits. In respect of certain types of goods so-called Sector Understandings are applicable, which stipulate different minimum requirements:
Übersicht über Mindeststandards
The permissible terms of payment for credit periods of up to 5 years are also determined by the decision-making practice of the Interministerial Committee for Export Credit Guarantees and the guidelines of the Berne Union, the world’s largest association of private and state export credit and investment insurers; here the type of goods and the export value are decisive.
In addition, officially supported export credits in EU countries are governed by the decisions of the EU. In order to prevent distortions of competition with the private market, the European state export credit agencies are not allowed to grant short-term cover for exports to other EU member states and the core countries of the OECD. Every few years the EU reviews and updates its classification of marketable and non-marketable short-term risks.
Governance and sustainability issues are the focal point of international cooperation. On OECD level the state export credit agencies therefore agreed on uniform procedures, which go beyond laying down financing conditions:
- Common Approaches for environmental and social due diligence in connection with officially supported export credits
- The Recommendation on Bribery and Officially Supported Export Credits establishes the framework for preventing and combating corruption.
- Sustainable Lending: In the past, many low-income countries benefited from a debt relief through one of the multilateral initiatives. For the Heavily Indebted Poor Countries (HIPC) these initiatives, in particular the activities at the G8 Summit at Cologne in 1999, were an important step. Since then, the International Monetary Fund (IMF) and the World Bank have been careful to prevent renewed over-indebtedness and to promote sustainable development in these countries. The state export credit agencies in the OECD member states support the IMF and the World Bank in its efforts by means of introducing appropriate guidelines for the provision of export credits guaranties.
International Working Group
- These days German exporter increasingly compete with companies from countries such as Brazil, Russia, India, China or South Africa, which are not bound by the rules and regulations of the OECD. In order to restore a level playing field for all market participants worldwide, an International Working Group (IWG) was set up in 2012, whose members include, in addition to the EU, all other OECD countries as well as, among others, Brazil, China, India, Malaysia, Russia and South Africa. The objective of the IWG is to develop new global standards for officially supported export credits. We regularly report on any concrete progress made in our Annual Report.
Cooperation – reinsurance/coinsurance
- German exporters are faced with intensified global competition and try to improve their position by means of relying more and more on international procurement, production and distribution structures. In particular capital goods transactions increasingly involve several exporters from different countries. This international division of labour has resulted in an increase in the demand for the inclusion of foreign goods and services and/or supplies from foreign subcontractors in Hermes Cover.
- Normally, foreign content can be easily included in an export credit guarantee issued by the Federal Government provided that certain limits are not exceeded. Nevertheless, in connection with multi-sourcing projects with elevated portions of foreign supplies, it may be necessary to consider also other options for the inclusion of foreign content. Depending on the contractual conditions of the respective export contract, the mandatary will chose the appropriate, customised insurance model (coinsurance or reinsurance). When it comes to covering multi-sourcing projects reinsurance plays a particularly important role.
Kooperationsmodelle im Überblick
Der Bund bietet Exporteuren die Möglichkeit, im Rahmen einer unverbindlichen Voranfrage zu klären, ob die Übernahme einer Hermesdeckung auch dann möglich ist, wenn der Anteil ausländischer Zulieferungen 49 Prozent übersteigt. Hierzu kann der Exporteur – noch vor dem eigentlichen Deckungsantrag – eine formlose Projektskizze einreichen, die im Kern eine Projektbeschreibung, die geplante Lieferstruktur und eine Begründung für das Erfordernis des hohen Auslandsanteils sowie die Bedeutung des Projekts für ihn und den deutschen Standort enthalten sollte. Nach Prüfung teilt der Bund dem Exporteur im Rahmen eines unverbindlichen Indikationsschreibens mit, ob und bis zu welcher Höhe bei dem konkreten Geschäft ausländische Zulieferungen möglich sind. Die Prüfung der Voranfrage ist kostenlos und kein zwingender Schritt im Antragsverfahren.