Export credit guarantee scheme
The export credit guarantee is for investors who wish to invest in export credit. This scheme was introduced in 2009, during the economic crisis, to rekindle the financing of export credits.
Aims of the export credit guarantee
The guarantee scheme makes it more attractive for investors to provide capital to banks for financing the export of Dutch capital goods. It creates a new investment opportunity for institutional investors, like pension funds and insurance companies.
Contributions to banks by institutional investors can make loans cheaper. They can also make export funding more widely available. Both effects make Dutch exporters of capital goods more competitive.
How the export credit guarantee works
Buyers often prefer to borrow the money they need to pay an exporter for goods or services. The buyer pays back the bank which provided the loan at a later stage.
The bank can cover itself against the risk of non-payment by the buyer by taking out export credit insurance (EKV) with the State of the Netherlands. The bank can opt to raise the necessary capital for the transaction from an external party, like an institutional investor. The export credit guarantee means the Dutch government will cover the investor's risk in full.
As a result, the investor charges the bank less for the capital. And banks have greater scope to lend. This enables Dutch exporters to offer buyers a better financing package.
Guarantees are only given for export credits that are insured under the EKV scheme offered by the State of the Netherlands.
Applying for an export credit guarantee
All banks insured under the EKV can apply for a guarantee to Atradius Dutch State Business. Atradius arranges export credit guarantees on behalf of the State of the Netherlands. The application form, explanatory notes and more information are available on their website.
Before a bank is given an export credit guarantee, an assessment is made of:
- its ability and willingness to meet the EKV conditions;
- its creditworthiness.