The Federal Government today expanded the insurance possibilities for German exports. This was announced by at today's conference "In dialogue with business – export credit and investment guarantees of the Federal Republic of Germany". The improvements regarding export credit guarantees focus on exports to Africa and small-scale transactions.
State Secretary Bareiß said: "Today, we are sending out a clear signal for Africa: we will expand our guarantees for exports to Africa. We are thus providing new building blocks for the success of our enterprises and for better economic development in Africa. In addition, we have developed our instruments to support small and medium-sized exporting businesses in particular. The new digital and standardised solutions will primarily help SMEs."
The following amendments have been adopted:
1. Reduction of the deductible for certain transactions with Africa
The Federal Government's export credit guarantees are provided for German exports to almost all African countries. The insurance possibilities for transactions with public contracting authorities are restricted for some countries; the exporter or the financing bank must in particular accept a deductible of 10% (instead of the regular 5%) in cases of damage. From now on, the deductible will be reduced for countries that have improved the environment for private investors in the context of the G20 initiative entitled "Compact with Africa". This applies to Côte d’Ivoire and Senegal and – with certain restrictions – to Ethiopia, Ghana and Rwanda. These improvements are planned to be gradually expanded to further African countries, provided that the reforms have made enough progress.
2. Better guarantees for "small tickets"
In view of regulatory requirements, the financing of small-scale export transactions ("small tickets") by banks is often relatively time-consuming. The Federal Government's export credit guarantees meet individual needs and thus help reduce the financing costs. For this purpose, a package of measures to improve the existing instruments has been identified in close coordination with the exporting industry and the banking sector. As a first major step, the core element of the Hermes export credit insurance system, the "supplier credit cover", will be made available in a simplified and standardised online version as from 1 July 2018. In future, cover for transactions with an order volume of up to €5 million and loan terms of a maximum of 5 years can be applied for entirely online. Exporters can see immediately whether an export credit guarantee can be granted for a transaction and the premium that must be paid. The processing periods will be reduced enormously. In a test phase (1 year), no application fee needs to be paid. Further improvements are planned or have already been implemented, e.g. the launch of an online portal for the Federal Government's export credit guarantees and the simplification of export financing via letters of credit.