Through changing times

1949

• “Gesetz über die Übernahme von Sicherheitsleistungen und Gewährleistungen im Auslandsgeschäft” (Act on the provision of cover in export business) passed.
• The Federal Government commissions a private consortium with the management.
• 9 November: First meeting of the Interministerial Committee (IMA) in Frankfurt-Hoechst

1952

• Wholeturnover Policies (APG) launched.

1957

• The first rescheduling agreement with Argentina leads to the founding of the Paris Club.

The projects presented here are representative of the export transactions realized in the last 75 years. The focus here is on the special eligibility for support in securing export transactions and financing, taking into account the following core topics:

SPECIAL FINANCING

DEVELOPING COUNTRIES

INFRASTRUCTURE PROJECTS

SMALL AND MEDIUM-SIZED EXPORTERS (SMES)

SUSTAINABILITY

1960

• Integration of the statutory cover limit for Export Credit Guarantees in the annual Budget Law of the Federal Republic.
• Introduction of cover for buyer credits introduced.

1963

• First comprehensive reduction of the uninsured percentages.

1964

• First coinsurance agreement with the Swiss export credit agency ERG, the precursor of today’s SERV.

1972

• Introduction of exchange rate cover.

1973

• Establishment of cover facilities for leasing transactions.

1975

• Airbus delivery covered for the first time.

1976

• Another reduction of the uninsured percentages.
• Introduction of the 5 per cent alternative for buyer credits with concurrent reduction of the waiting period in the event of a loss.

1977

• The Statutory Cover Limit exceeds 100 billion German mark.

1978

• Arrangement on Guidelines for Officially Supported Export Credits (OECD Consensus) adopted.

1979

• Securitisation Guarantees, i.e. the possibility to assign claims under buyer credit cover, introduced. Today, this product is experiencing a renaissance.

1980

• Major revision of the Wholeturnover Policies (APG); the risk of protracted default with regard to private-sector buyers included.

1981

• The debt crisis commences. First rescheduling of Poland’s debts in the Paris Club. In 1983, it is followed by Mexico, Brazil and African countries.

1984

• Revision of the “Guidelines for the Issuance of Export Credit Guarantees”.
• The risk of protracted default included in medium-term single transaction cover for private-sector buyers (Ausfuhrgarantien).

1985

• Cover for project finance provided for the first time.
• The Statutory Cover Limit amounts to 100 billion euros.

1986

• So-called trust model introduced, i.e. the possibility of providing buyer credit cover in favour of foreign banks via a German trustee. At the same time, “assignment models” and progress payment are introduced.
• Major reform of the terms of cover through a revision of the General Terms and Conditions for the main products of Export Credit Guarantees: supplier credit, buyer credit and manufacturing risk cover.

1987

• Important IMC decisions on the cover policy and its practical implementation published in the ECA-Report.

1990

• Hermes Cover provided in favour of companies in the new federal states in former East Germany.

1992

• Cover facilities for transactions based on countertrade deals (so-called barter or compensation trade) with CIS countries made available.

1993

• Existing Soviet debt rescheduled in the Paris Club for the first time.

1994

• Revision of the OECD Consensus.
• German premium system providing for a uniform premium to be paid replaced by variable premiums based on five country risk categories.

1996

• Uninsured percentage for the risk of protracted default reduced.
• Largest rescheduling in the Paris Club agreed with Russia.

1997

• The Federal Government ends providing cover for short-term transactions with private-sector buyers in EU countries.
• Website for the Export Credit Guarantees launched on the Internet.

1998

• Uniform OECD-wide premium system for political risks (“Knaepen Package”) introduced
• First reinsurance treaties concluded with the export credit agencies ECGD (United Kingdom), OeKB (Austria) and COFACE (France).

1999

• Euler Hermes and PwC are named the “World’s Best Export Credit Agency” by the readers of the UK-based Trade Finance Magazine for the first time.
• On 7 October, the 1188^th IMA meeting is the first to be held in the new capital Berlin.
• 50^th anniversary of the Export Credit Guarantees celebrated in November.

2000

• A Prognos study demonstrates that the Export Credit Guarantees safeguard about 216,000 jobs in Germany.
• Framework credit cover introduced.

2001

• Introduction of the OECD Environmental Guidelines (Common Approaches).
• APG-Online-Service makes reporting of turnover via the Internet possible.
• Project information published on the Internet.

2002

• OECD Sector Understanding on Export Credits for Ships adopted.
• Possibility that the Federal Government assumes a share in the legal cost incurred in the claims management introduced.

2003

• Wholeturnover Policy Light (APG-light) introduced.
• Export guarantee products are renamed “Export Credit Guarantees of the Federal Republic of Germany”.

2004

• www.agaportal.de website launched together with the Investment Guarantees and the Untied Loan Guarantees as central web page for the Federal Government’s foreign trade and investment promotion schemes.
• The event series “Exportkreditgarantien des Bundes im Dialog mit der Wirtschaft“ („Federal Export Credit Guarantees in dialog with industry“) starts at the Federal Ministry of Economic Affairs and Climate Action in May.

2006

• Introduction of the Counter-Guarantee.
• New, risk-adjusted system of buyer surcharges introduced for the calculation of the premium.
• Russia repays outstanding debts under the rescheduling agreement ahead of schedule.

2007

• OECD Sector Understanding on Export Credits for Civilian Aircraft (ASU) adopted.

2008

• Introduction of Revolving buyer credit cover.
• Greater flexibility in the inclusion of foreign deliveries and local costs in the cover.
• Reinsurance treaty with US EXIMBANK signed; this brings the number of bilateral agreements with other export credit agencies to 22.

2009

• 60^th anniversary of the Export Credit Guarantees of the Federal Republic of Germany celebrated on 15 December.
• Option to reduce the uninsured percentage to 5 per cent against a premium surcharge introduced as part of a package of measures in support of the economy during the financial and economic crisis.

2010

• Export credit cover for service providers introduced.
• Total cover provided reaches a record 32.5 billion euros in 2010.

2011

• Introduction of the Buyer Credit Guarantees “express” (FKD-express), which provides cover for buyer credits within four bank working days.
• General Terms and Conditions of Cover for transactions with private-sector buyers and public-sector buyers unified. The German terms “Garantie” and “Bürgschaft” are replaced by the uniform term “Deckung”.
• Minimum premium rates for commercial risks involved in transactions with credit periods of more than two years introduced within the framework of the OECD premium system.

2012

• Revised version of the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (“Common Approaches”) adopted; the social impact assessment is explicitly included in its title (Environmental and Social Due Diligence).
• New wording of the OECD Consensus becomes effective. The main new element is the Sector Understanding on Export Credits for Renewable Energy, climate Change Mitigation and Adaptation, and Water Projects which includes climate protection.

2013

• The German government extends the option to reduce the deductible to 5% for commercial risks under supplier credit cover and the Wholeturnover Policy (wholeturnover policy) by three years.

2014

• The OECD Sector Understanding on Export Credits for Rail Infrastructure with longer credit periods for officially supported export finance takes effect.
• The Federal Government broadens the availability of cover for selected sub-Saharan countries to make also medium and long-term transactions with public buyers possible.
• Dr. Hans Janus, long-standing member of the board of management of Euler Hermes Aktiengesellschaft responsible for the state export credit guarantees, retires in December.

2015

• As of 01 January, Ms Edna Schöne succeeds Dr. Janus as member of the company’s board of management.
• Image in motion: Explanatory film about the Export Credit Guarantees.
• A study of the ifo Institute shows that the Export Credit Guarantees safeguarded and/or newly created about 200,000 jobs in Germany in 2012. To these about 100.000 jobs abroad have to be added.

2016

• The Chinese state export credit agency Sinosure and Euler Hermes Aktiengesellschaft sign a bilateral reinsurance treaty. It is the first agreement of this type with a state export credit agency of a non-OECD country.
• New “49 PLUS” system for foreign deliveries differentiates only between export transactions with foreign content amounting to up to 49 per cent and exceeding 49 per cent in connection with single transaction cover. This makes applying for an Export Credit Guarantee easier.
• The Federal Government adopts the strategy paper “Neue Impulse für den internationalen Wettbewerb um strategische Großprojekte – Chance für Deutschland verbessern” (New impetus for international competition for large-scale strategic projects – improving the opportunities for Germany).
• First reinsurance framework agreement with a multilateral Islamic Institution, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), signed.
• The Federal Government adopts the National Action Plan for Business and Human Rights (NAP) to implement the corresponding guiding principles of the United Nations on a national level.

2017

• Hermes goes digital: The myAGA customer portal offers exporters and banks the possibility of submitting applications for cover and managing them online.
• The Export Credit guarantees open their own YouTube channel and inform interested parties on LinkedIn.
• An information and liaison office for the Export Credit Guarantees opened in Dubai as a pilot project.
• The new Covered Bond Guarantee as supplementary cover complementing Buyer Credit Guarantees facilitates refinancing for banks via their own “Pfandbriefgeschäft” (covered bond business).

2018

• The Federal Government facilitates exports to Africa and adopts measures to support SMEs.
• Digital Supplier Credit Guarantee Hermes Cover click&cover export introduced for standardised business of SMEs. Applications for buyer credit cover or manufacturing risk cover can solely be submitted online.
• Bilateral reinsurance framework agreement between the Russian export credit agency EXIAR and Euler Hermes signed.

2019

• Introduction of the digital product Hermes Cover click&cover BANK for standardised small-ticket finance (up to 5 million euros).
• Digital interface provides a direct link from the customer portal myAGA to the IT systems of financing partners.
• Euler Hermes, OeKB (Austria) and SERV (Switzerland) decide to intensify their cooperation in the area of state export credit guarantees to support exporters from the German-speaking “D-A-CH” region and SMEs in international competition.
• The Federal Government establishes competence centres with financing experts at the German foreign Chambers of Industry and Commerce at Dubai, Singapore and Nairobi.
• The IMC marks the 70^th anniversary of the Export Credit Guarantees.

2020

• Coronavirus crisis
  • The Federal Government adopts a package of measures to support the German export industry during the crisis caused by the COVID-19 pandemic, e.g. facilitating financing and refinancing and to improve their liquidity during the Corona crisis.
  • The Federal Government, France, Finland, Italy and Norway agree on a temporary debt moratorium for ECA-financed cruise ships.
  • Based on an EU Commission’s decision, the Federal Government extends cover facilities to include so-called marketable risks.
• Introduction of Shopping-Line-Cover as special form of a Buyer Credit Guarantee intended to facilitate access for German exporters to solvent foreign buyers’ procurement programmes.
• As part of the climate strategy for the Export Credit Guarantees, the Special Renewable Energies Initiative expands cover facilities for renewable energies transactions. At the same time, cover for certain climate-damaging transactions is restricted.

2021

• As part of the modernisation of the OECD Consensus, the limit on cover for local costs raised to 40 per cent of the export order value in the case of buyers from OECD high income countries and 50 per cent for all other buyers.

2022

• Debt moratorium for ECA-financed cruise ships and EU exemption for marketable risks end as planned on 31 March.
• The temporary measures in support of the German export industry during the coronavirus crisis end on 30 June 2022.

2023

• Following the earthquake in Türkiye, the federal government has created the option of extending maturities until August 31, 2023 without incurring charges.
• Waiver of advance payment requirements for local costs are now possible in individual cases.
• With the relaunch of the exportkreditgarantien.de website into a modern platform, the "AGA Report" followed and is now called the "EKG Report"
• Simplified procedures for Ukraine: the strict case-by-case examination is replaced and bank security requirements are eliminated.
• The new forfaiting guarantee, especially for the financing of small-volume transactions and for more liquidity for exporters
• The new OECD consensus comes into force on July 15, 2023, for significantly more flexibility and even more needs-based support for export transactions by the federal government
• Extended scope of application of Hermes Cover click&cover
• Climate policy sector guidelines and cover facilitations for green business come into force
• COP28 in Dubai: Export credit guarantees in the German Climate Pavilion
• Export Echo is the new podcast on the German government's export credit guarantees

2024

• Strategic foreign projects were defined in the Federal Government's 2024 strategy paper for "New impetus for international competition for major strategic projects - improving opportunities for Germany"
• Supporting SMEs by reducing bureaucracy - Federal Government adopts relief package for export credit guarantees
• Ukraine-APG covers short-term transactions against bad debt losses
• Business Development Sustainable Projects: With the new team, the focus is on transformation projects