Habeck: "We are strengthening the German export industry" - Export Credit Guarantees will be opened up to more companies - Procedures will become simpler

The German Government has adopted a comprehensive package of measures for Export Credit Guarantees in the responsible interministerial committee. Against the backdrop of geo-economic changes, the possibilities for issuing such guarantees will be expanded. To this end, the conditions for eligibility, cover policy, product design and reporting obligations will be improved.

Robert Habeck, Federal Minister for Economic Affairs and Climate Action: "The current economic situation of the export industry and the changing balance of power in international competition make adjustments to foreign trade instruments necessary. Our aim is to maintain and secure industrial value creation in Germany. In this way, we are securing industrial jobs in particular, strengthening our economic sovereignty, resilience and future viability."

Simplification of access criteria: From the origin of goods to the company contribution

The eligibility of a business and its justifiability in terms of risk are prerequisites for the assumption of federal cover. Until now, the origin of goods was a central criterion for eligibility. Now the Federal Government has added a new approach(flex&cover) to the eligibility criteria. This takes account of the increasingly international business and value creation models of German companies in foreign trade.

Flex&cover focuses on the "German Footprint", which the entire export company provides for Germany as a business location. This economic contribution is determined individually for each company in an overall view, including the extent to which aspects of research and development, tax liability, investment activity, employment, training and production took place or take place in Germany and where the headquarters are located.

Extended cover policy for the defense industry

In view of the turnaround in the defense industry, the Federal Government has extended cover options for defense projects. These are currently limited.

With the package of measures that has now been adopted, the cover policy for arms exports will be adapted to other sectors. To determine which goods and recipient countries are eligible for cover, the General License No. 33 - Export and transfer of other military equipment of the Federal Office of Economics and Export Control (BAFA) and the War Weapons List.

Higher cover ratio. Better conditions. Extended target group.

The package of measures also includes a number of changes to the existing product portfolio. This relates to financing options for companies abroad with a strong credit rating that want to procure in Germany (so-called Shopping Line Cover), the Forfaiting Guarantee and the Counter-Guarantee.

• Shopping Line Cover provides for better conditions in the areas of disbursement, repayment and fees. In addition, the group of potential customers will be expanded.
• The target group for the Forfaiting Guarantee introduced in 2023 will be expanded to include trading companies. In addition, the cover ratio will be increased from 80 percent to 95 percent and payment will be linked to the first delivery or service and no longer to operational readiness - with a correspondingly positive effect on the exporter's liquidity.
• As a result of the increased demand for guarantees from German exporters and the associated increased need for Counter-Guarantees, the Federal Government has decided to increase the Counter-Guarantee framework per company from EUR 80 million to EUR 120 million. This amount can also be exceeded in justified exceptions.
   

Faster procedures - less bureaucracy

In order to further accelerate the application procedure and application processing for Export Credit Guarantees, the internal processes for environmental, social and human rights assessments (ESHR assessments) are being simplified. The content of the ESHR assessment, which is defined in the OECD Common Approaches, remains unaffected.