ANNOUNCEMENT 30 Jun 2019

The German Export Credit Agency Euler Hermes Aktiengesellschaft provided a guarantee to support German exports of various goods for an offshore wind farm in Chinese Taipei.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising
Inception date: 30 Jun 2019 | Removal date: open ended

Trade finance

In June 2019, the German Export Credit Agency Euler Hermes Aktiengesellschaft granted an export credit guarantee. The guarantee supports German exports of various goods for an offshore wind farm in Chinese Taipei.

The German Export Credit Agency Euler Hermes Aktiengesellschaft only publishes value ranges for the projects it finances. The present project is in category 5. This category includes projects with a financing value of over 200 million EUR. The GTA assumes the lower bound amount of the respective category, in this case, 201 million EUR (approx. USD 228.9 million), as the conservative estimate of the project value. The maturity of the loan is 15.5 years. The financing institution is SMBC.

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 or from foreign subsidiaries.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 30 Jun 2019 | Removal date: open ended

Local sourcing

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.

 
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