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MIL OSI Translation. Region: Germany / Deutschland –

Source: Federal Ministry for economic Affairs and energy

07.07.2020 – Press Release – Foreign Trade Promotion

Introduction

The German export industry is feeling the effects of the corona pandemic very clearly. In addition to disruptions in the supply chains and in the handling of projects abroad, the financing conditions have also deteriorated significantly. The proven state export credit guarantees (“Hermes guarantees”) are particularly important in this situation. They hedge foreign business against political and economic risks, for example also in the case of payment difficulties of foreign customers. The Federal Government has therefore decided on a further package of measures that will facilitate the financing of export business. Federal Minister Altmaier: “With our 5-point package of measures, we are supporting German exporters in this critical phase. We relieve companies that are suddenly faced with existential challenges and are not to blame. At the same time, we are creating new incentives abroad to order goods and services from Germany. Because export is an important pillar of our economy and creates and secures high-quality jobs in Germany. “Exporters and export-financing banks are to be supported at the following points: Improved financing conditions for new export transactions (e.g. reduced down payments and delayed repayments for certain shops) Introduction of a shopping line Cover (simplified protection of various export financing for large foreign buyers) Ease of fees for Hermes guarantees Improved refinancing options for export-financing banks Further technical improvements The 5-point package of measures was developed in close exchange with the German export industry as well as banks and business associations here (PDF, 507 KB). Shortly after the outbreak of the crisis, the federal government raised the budgetary guarantee framework and the protection options for The German federal government supports the financing of German exports with export credit guarantees. The annual guarantee volume is around € 20 billion. The “Hermes guarantees” are accepted against payment of a premium in line with the market and are subsidiary to private insurance offers. In challenging markets, however, they are often the key to ensuring that an export can even take place. Further information can be found on the federal portal at www.agaportal.de.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure need be perfect.

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