MIL OSI Translation. Region: Germany / Deutschland –
Source: Federal Ministry for Economic Affairs and Energy
10/08/2020 – Press release – Foreign trade promotion
The federal government has decided to further improve its foreign trade promotion: the proven KFW program for refinancing federal export credits will be continued from January 2021 with improved conditions. The program ensures the financing of German exports in cases in which these exports threaten to fail due to liquidity bottlenecks at the banks. It has a volume of 1.5 billion euros per year. Federal Minister Altmaier: After we significantly improved the financing conditions for German exporters with our 5-point package of measures in July, we are now stepping up. In coordination with the European Commission, we will in future be able to support German exporters with even better offers if they have difficulties with financing. In this way, the program continues to make its important contribution to more growth and employment in Germany, especially in the current environment. With the program, KfW refinances long-term export credits on behalf of the federal government, which banks grant foreign buyers of German goods and services and which have an export credit guarantee ( “Hermes guarantee”) are secured. Refinancing takes place at market conditions and therefore does not burden the federal budget. Under the program, which was previously limited to the end of 2020, numerous small-volume businesses will be refinanced, so that many small and medium-sized companies will benefit. From 2021, the program conditions will be improved so that refinancing will be more attractive. In particular, the financing banks no longer have to carry out an elaborate market test for every financing, as the program structure already ensures conditions that are compliant with European law. Further information can be found on the federal portal for export credit guarantees at www.agaportal.de
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.