Rebooting Danish exports: EKF to facilitate additional export finance in difficult markets
Export finance for new and more risky markets is now easier to achieve. As part of the agreement on rebooting Danish exports, as of today, EKF will be facilitating export finance for 52 countries along with financing for 20 previously closed markets.
January 14 2021
Under the agreement on rebooting Danish exports, EKF Denmark's Export Credit Agency is now ready to increase its risk appetite in difficult markets.
In October, EKF was allocated DKK 125 million to support Danish companies exporting to medium- and high-risk markets, and the funds are now ready to be used for actual support.
The capital injection is estimated to be able to support guarantees worth DKK 1-1.5 billion, which is estimated to facilitate export finance totalling an estimated DKK 2-3 billion in difficult markets.
"We are now ready to facilitate export finance in a number of new countries. In addition, we are easing the requirements applied to exporters' customers in a large group of markets in which we already operate. The coronavirus crisis has hit many businesses hard, and there is a need for EKF to accept increased risk exposure in order to support Danish exporters. I would urge all Danish exporters facing challenges to reach out to us," says Kirstine Damkjær, CEO of EKF.
EKF's eased requirements in difficult markets is just one of the items in the agreement on rebooting Danish exports, and Dan Jørgensen, Minister for Energy, Utilities and Climate and Acting Minister for Industry, Business and Financial Affairs, is pleased that the initiatives will now benefit Danish exporters.
"The fact that EKF is now paving the way for more new foreign orders to Denmark is great news for Danish employees and export businesses. We are unfortunately in a situation where COVID-19 is paralysing much of Danish trade and industry, and where the global pandemic is impacting export opportunities here in Denmark. With a wide majority of parties represented in Parliament, we have carried out a number of initiatives to reboot Danish exports and facilitate new trade opportunities such as green, sustainable investments for which Danish businesses are poised to supply the solutions entailed. For the same reason, I am pleased that many businesses will now be able to apply for the financial backing needed for making Danish green investments around the globe," he says.
For the previously closed countries, the maximum guarantee amount is DKK 25 million per transaction. This will ensure that many businesses, including small and medium export enterprises, will have access to the new opportunities. For the 52 countries for which the existing buyer requirements will be eased, there is no upper limit on the amount.
"The opening up for new markets and easing of existing requirements is the first step among several initiatives to increase EKF's risk appetite and capacity to globalise Danish green solutions. We look forward to implementing them and are pleased with the political backing for Danish exports," says Kirstine Damkjær.
The Danish government and the agreement parties behind the reboot agreement have since enlarged the agreement with a number of new initiatives that will also increase EKF's risk appetite and create new financing options for Danish exporters. In the time ahead, EKF will be in talks with companies and operators’ organisations on implementation of the forthcoming initiatives.
EKF is opening up for export finance for Danish companies' customers in 20 new countries:
- Cape Verde
- Papua New Guinea
In addition, EKF is easing the existing requirements in 52 countries:
- Costa Rica
- Dominican Republic
- El Salvador
- Ivory Coast
- Hong Kong
- North Macedonia
- Puerto Rico
- Saudi Arabia
- South Africa