30. October 2009

On 30 October the Danish Finance Committee approved a government business package. Danish export companies can thus anticipate fixed rate export loans and state working capital guarantees.

With the approval by the Danish Finance Committee Eksport Kredit Fonden (EKF) can now offer Danish export companies fixed rate export loans and working capital guarantees.

The object of the working capital scheme is to make sure that Danish export companies and their sub-suppliers obtain the working capital necessary to manufacture their export orders.

To make sure that as many companies as possible benefit from the scheme, the DKK 2 billion allocated to this purpose have been split up. DKK 1 billion is earmarked for working capital guarantees below DKK 5 million and the other DKK 1 billion is for working capital guarantees up to DKK 50 million. For working capital guarantees above DKK 5 million, a limit of DKK 50 million per company has been set.

The companies should apply for a working capital guarantee via their bank. The banks will assess and process working capital guarantees below DKK 5 million whereas EKF will assess working capital guarantees exceeding DKK 5 million. This procedure is designed to make the application process and case handling as simple as possible for the companies.

Before EKF can issue the first working capital guarantee, two things need to fall into place. An agreement needs to be established with the Danish Bankers Association and the influence of EU state aid rules on the price of the working capital guarantees needs to be clarified. Both are expected to fall into place within the next two weeks.

”The Finance Committee has approved the framework. We will sort out the last details with the Ministry of Economic and Business Affairs as soon as possible and our goal is that the banks receive the first applications for working capital guarantees on 16 November”, says EKF’s CEO Anette Eberhard.

Danish export companies can apply for working capital guarantees until 31 December 2010. The duration of a working capital guarantee is max. three years.

Fixed rate export loans
Apart from the working capital scheme the approval of the business package by the Finance Committee also means that from today companies can obtain export loans with a fixed interest rate for the entire duration of the loan. The purpose is to strengthen the competitiveness of Danish companies by giving them the option of fixed rate financing as part of their offer to their buyers.

Further information

Press:
CEO Anette Eberhard via Director, Communication Mogens Agger Tang tel. 20 18 39 76

Customer and organisations:
Fixed rate export loans: Associate Director Kim Richter tel. +45 35 46 61 87.
Working capital scheme: Chief Advisor, Relations Jørn Fredsgaard Sørensen tel. +45 35 46 61 39.

Eksport Kredit Fonden (EKF) is a state-owned enterprise that is operated on business terms. EKF insures Danish business and industry against commercial and political risks. EKF provides financing for international export transactions serving Danish economic interests for approximately DKK 30 billion.