21 October 2010
The parties behind the government backed business package have decided to extend the scheme until the end of 2011. So far approximately 70 Danish export companies have benefited from the pool of a total of DKK 2 billion which has been reserved for EKF to guarantee for loans to companies who would otherwise not be able to obtain credit in their banks.
These companies have thus avoided turning down orders which they might not have afforded to produce otherwise. Thus, the working capital guarantees have helped to secure continued export of Danish goods.
“It is my objective that the entire amount of DKK 2 billion is used for the benefit of the Danish export companies. Therefore I am pleased that the Working Capital Guarantee Scheme has been extended and that there is an increasing demand among the companies and banks for whom the scheme has been established,” says EKF´s CEO, Anette Eberhard.
The DKK 600 million in guarantees and offers which EKF has issued so far, is almost twice as much as the amount obtained two months ago. In other words, the scheme has been in great demand lately. It will, however, be a while before EKF runs the risk of disappointing companies in need of liquidity as there is still DKK 1.4 billion left in the pool.
The majority of the 70 companies who has so far obtained a working capital guarantee, are small and medium enterprises, however, large corporates will be able to obtain a working capital guarantee as well.
Furthermore, it is worth noticing that EKF can issue guarantees to both export companies as well as sub-suppliers to export companies.
Therefore, a company does not have to be directly involved in export itself in order to obtain a working capital guarantee as long as the company is a supplier to an export company. Applications for a working capital guarantee must be submitted to the company´s own bank.