ANNOUNCEMENT 30 Apr 2018
In April 2018, the German Export Credit Agency Euler Hermes Aktiengesellschaft announced providing a guarantee to support a German project which will fully equip new and existing hospitals with medical and non-medical equipment in Turkey.
NUMBER OF INTERVENTIONS
AGA-Portal, Project information 2018, April: https://www.agaportal.de/en/exportkreditgarantien/praxis/projektinformationen
AGA-Portal, Main features of export credit guarantees:
AGA-Portal, Foreign Content: https://www.agaportal.de/en/exportkreditgarantien/verfahren/auslaendische-zulieferungen
The export credit guarantee was announced in April 2018 and finances a German project which will fully equip new and existing hospitals with medical and non-medical equipment in Turkey. The benefitting German exporter is Acendis Handels GmbH. The company provides project management services as well as planning and purchasing of equipment for hospitals. The company is located in Hannover. In the context of procurement streamlining, the company highlighted that its headquarter's close: "proximity to major manufacturers (ed. of medical and non-medical equipment) has made it possible for us to establish especially strong links, which we are able to make available to our clients by way of knowledge transfer and procurement streamlining."
The German Export Credit Agency Euler Hermes Aktiengesellschaft only publishes value ranges for the projects it finances. The present project is in category 2. This category includes projects with a financing value between EUR 16 and 50 million. The GTA assumes the lower bound amount of the respective category, in this case 16 million EUR (approx. USD 19.3 million), as the conservative estimate of the project value.
The maturity of the loan will be 9 years. The financing institution is ING Bank.
Germany provides Export Credit Guarantees and Untied Loan Guarantees to support German exports. The issuance of such guarantees is managed on "behalf of the Federal Republic of Germany by Euler Hermes Aktiengesellschaft".
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
The German Export Credit Agency's approval process depends on the percentage of foreign-sourced goods included in the value of the export contract. Export contracts which include a foreign content value lower than 49% are approved without further investigation. However, if the export contract value contains more than 49% in foreign-sourced goods, an "Interministerial Committee will decide whether a transaction may be covered on the merits of the individual case." According to the agency, the criteria for this evaluation include the likely effect of the transaction on German employment, whether the location of the project's management remains in Germany, the domestic availability of foreign-sourced inputs, and the German exporter's capacity utilisation rate.