Your Partner for Export Cover

State export credit guarantees (so-called Hermes Cover) have been protecting exporters and banks from the risk of commercial and political payment defaults since 1949 as an instrument for promoting foreign trade. The range of products available addresses the entire export value chain from production and delivery to payment of the final instalment.

Export credit guarantees transfer a large part of the risk of a payment default to the Federal Republic of Germany. In return for this, the policyholder pays a premium calculated on the basis of the risk involved. In the event of a loss, the Federal Government indemnifies the policyholder for the amount of the receivable covered (less uninsured percentage).

Export credit guarantees play a key role in risk management and sales finance. In many cases, they are a prerequisite for bank finance as the Federal Government with its investment-grade rating (AAA rating of Germany) lowers the credit risk, which has a positive effect on financing terms.

As a basic rule, all German export companies and export financing banks domiciled in Germany are able to apply for the Federal Government’s export credit guarantees regardless of their size or the value of the order. The key criteria for the provision of cover include eligibility for trade promotion and the prospect of loss-free execution of the transaction (justifiability of the risk).

Export Credit Guarantees are only to be had where the private industry does not offer appropriate or sufficient insurance cover. Consequently, the Federal Government concentrates on export credit guarantees for emerging economies and developing countries. Hermes Cover helps to open up markets, which are difficult to access, and to maintain business relations in challenging circumstances.