Minister Altmaier: We are supporting German exports as an important pillar of our economy based on a 5-point package of measures

The German export industry is feeling the effects of the coronavirus pandemic very keenly. In addition to disruptions in supply chains and in the execution of projects abroad, financing conditions have also worsened considerably. In this situation, the time-proven state export credit guarantees (Hermes guarantees) are particularly important. These guarantees insure foreign exports against political and economic risks, not least in the event that foreign customers experience payment difficulties. The Federal Government has therefore adopted a further package of measures to facilitate the financing of exports.

Federal Minister Altmaier said: “We are using our 5-point package of measures to provide support for German exporters in this critical phase. We are assisting companies that have suddenly seen their survival under threat through no fault of their own. At the same time, we are creating new incentives abroad to encourage more orders of goods and services from Germany. After all, exports are an important pillar of our economy and create and secure high-quality jobs in Germany.”

Exporters and banks providing export financing need support in the following areas:

1. Improved financing conditions for new exports (e.g. smaller advance payments and delayed repayments for certain transactions)
2. The introduction of ‘shopping line’ cover (simplified cover for various types of export financing in the case of large foreign buyers)
3. Reduced fees for Hermes guarantees
4. Improved options for refinancing for banks providing export financing
5. Other technical improvements

The 5-point package of measures was developed in close cooperation with the German export industry, banks and business associations.

More details on the measures can be found here (PDF, 507 KB) (in German).

Shortly after the outbreak of the crisis, the Federal Government raised its budgetary guarantee framework and expanded the scope of cover for exports.

The Federal Government supports the financing of German exports via export credit guarantees. Each year, it provides guarantees worth a total of around €20 billion. These ‘Hermes Guarantees’ are granted against payment of a market-based premium and are subsidiary to any private insurance products. In challenging markets, however, they are often the key to making exports happen at all. Further information can be found on the Federal Government-run website www.agaportal.de.