Export Credit Guarantees have been an established and effective foreign trade promotion instrument of the Federal Republic of Germany for decades. They are managed by Euler Hermes on behalf of the government. Export Credit Guarantees protect German exporters and the banks financing them against commercial and political risks. Tailor-made and reliable protection against buyer and country risks is the most important advantage of state export credit guarantees.

Expanded advisory service

German exporters and banks are well-acquainted with Export Credit Guarantees, both as a financing instrument and as protection against commercial and political risks. However, the so-called Hermes Cover is relatively unknown abroad, despite offering numerous advantages to importers. For this reason, the Federal Government is expanding its advisory services in selected countries. Financing experts offer advice not only to German exporters and banks, but also to their local clients.

How importers benefit

With backing from the Federal Government the credit risk decreases. This has a positive effect on the financing conditions. The importer benefits from Germany’s excellent credit rating. In many cases, it is this fact that makes financing possible in the first place. Thus, ECA-supported finance “Made by Germany” is an interesting alternative to local loans or bond financing.