Investment guarantees reach record volumes - Federal Government supports German companies abroad
Government investment guarantees protect German companies from unforeseeable, political risks when conducting international business. They are in greater demand today than ever before since their introduction 50 years ago. Last year, guarantees issued for German foreign direct investment totalled ¤5.2 billion. The investment guarantees finance themselves from the fees charged.
Philipp Rösler, Federal Minister of Economics and Technology, stated: "In spite of the difficult international economic environment, the overall German economy is proving decidedly robust. The strong presence of German companies on the world markets is making a key contribution here. The Federal Government once again provided investment guarantees for numerous projects in 2011, enabling companies to operate in foreign markets in spite of the political risks involved. Thanks to this scheme, new ventures were launched in growing markets such as Colombia, Mexico, Indonesia, Malaysia and Vietnam."
Eligibility criteria for the guarantees are largely based on the OECD Guidelines for Multinational Enterprises. These comprise general principles and measures for responsible corporate behaviour abroad. Last year, guarantees were provided for a total of 86 ventures in 26 different countries. Many of these covered activities in the automotive and chemical industries, with one in five guarantees issued for a small or medium-sized enterprise.
At the end of 2011, the amount insured by the Federal Republic of Germany under the existing guarantees came to a total of ¤31.2 billion.
Additional information on investment guarantees can be found on the Federal Government's foreign trade and investment portal and on the web portal for the institutions that have been mandated by the government to process the guarantees (see links under "Further information").