The package of measures for Export Credit Guarantees
More flexibility, better conditions, faster processes
Securing the future, strengthening competitiveness -
For the German export economy
The German government has adopted a comprehensive package of measures for Export Credit Guarantees (Hermes Cover). The package extends the possibilities for issuing Export Credit Guarantees.
The six measures are aimed at maintaining industrial value creation in Germany, securing skilled industrial jobs, facilitating the financing of German exports and strengthening the competitiveness of the German export economy.
Find out more about the improvements in the areas of eligibility, cover policy, product design and reporting obligations.
Your advantages at a glance
- Extended eligibility: Introduction of the "flex&cover" approach, which focuses on the "German Footprint" and thus takes account of the international business models of German companies.
- Improved Shopping Line Cover: Creation of incentives for importers abroad to expand their supplier base in Germany. This makes it easier for German companies to access international procurement programs and major projects.
- Optimized Forfaiting Guarantee: Facilitating the sale of receivables for medium-sized exporters and now also trading companies. This leads to increased liquidity and greater financial flexibility.
- Increase in guarantee volume: Increase in the guarantee volume to up to 120 million euros to offer German exporters more flexibility and financial leeway in foreign business.
- Adapted cover policy for the defense industry: Expansion of cover options for arms exports, enabling more comprehensive approval of exports.
The six measures
company can benefit from the improved Hermes Cover.
Flex&cover -
More flexibility for German exporters
With flex&cover, the federal government is introducing a new concept of eligibility for funding that no longer exclusively considers the origin of goods as a funding criterion, but alternatively uses the "German Footprint" of a company to assess eligibility for funding. This increasingly takes into account the international business and sourcing models of German companies in foreign trade.
Shopping line cover - access to international procurement programs
The significant improvements in shopping line cover create new incentives for importers abroad to expand their supplier base in Germany. In future, such financing will be offered worldwide to importers with a very good credit rating (at least investment grade rating). The elimination of verification requirements, simplified disbursement conditions and flexible repayment profiles will create an attractive competitive environment for German companies.
Forfaiting Guarantee - Increased
cover ratio for more liquidity
The improved Forfaiting Guarantee makes it easier for medium-sized manufacturing exporters and now also trading companies to sell receivables. With an increased cover ratio of 95 percent, it offers attractive refinancing options.
The simplified sale of receivables and the possibility of an earlier payment date increase the liquidity of German companies, relieve the strain on credit lines and create more financial leeway, especially for small and medium-sized companies.
Counter-Guarantee - More flexibility and room for maneuver
By increasing the guarantee volume to up to 120 million euros per exporter (and even more in exceptional cases), the federal government is giving German companies more flexibility in their international business. This extension creates financial leeway for new business and helps to secure jobs and strengthen Germany as an industrial location. This opens up new market and growth opportunities, particularly for large-scale plant manufacturers operating in the energy sector and in the area of transformation projects.
Extended protection for the German defense economy
In view of the turnaround in the defense economy, the Federal Government has expanded the options for hedging military equipment. Previously, this was only possible in individual cases.
A simplified and faster procedure will enable military goods to be treated similarly to civilian export transactions in future.
Assessment of USM issues - 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) will be simplified over the next few months. The USM assessment defined in the OECD Common Approaches remains unaffected by this.
