7 March 2012
The export lending scheme will be infused with another DKK 15 billion and the period of reduced solvency ratio will be extended until the end of 2015. This is part of the Danish government's new growth package launched 2 March 2012. Strengthening EKF is meant to improve the companies' access to financing. The financial crisis has made it difficult for many companies to secure financing for their business transactions from the banks and this is hampering growth and creation of jobs in Denmark.
”The government’s initiative is really good news for Danish companies as well as for EKF. EKF has experienced a substantial increase in the demand for our guarantees since 2008 and the package is strengthening our possibilities of helping Danish export companies win new orders for Denmark in the coming years”, says EKF’s CEO Anette Eberhard.
With the infusion of additional DKK 15 billion the overall loan facility of the export lending scheme now totals DKK 35 billion. The scheme has been administered by EKF on behalf of the Danish state since 2009. The scheme with its original loan facility of DKK 20 billion has been in great demand and the additional amount will help to secure financing for new export orders, thus generating growth and jobs in Denmark.
It is mainly large companies who have made use of the export lending scheme but whenever large export companies win export orders worth DKK 10, this will lead to an increase equivalent to DKK 4 in the turnover of their sub-suppliers, who are often small and medium-sized enterprises.
Extension of the period of reduced solvency ratio allows EKF to help even more export companies with guarantees and financing in the coming years. This will benefit all types of companies, especially the small and medium-sized enterprises for whom it has been particularly difficult to secure financing for their business transactions. As a consequence of the financial crisis, more lenient requirements were originally introduced in 2010 regarding the so-called “solvency ratio”, i.e. the non-restricted equity in proportion to EKF´s total guarantee exposure. This change of requirements has now been extended until 2015.
According to figures from the economic consultancy, Copenhagen Economics, it is definitely worthwhile to strengthen EKF's export promotional efforts when the goal is to generate growth and jobs in Denmark. In 2011, EKF helped to secure orders worth DKK 30 billion for Danish export companies and their sub-suppliers as well as generating or retaining 20,000 jobs in Denmark.
CEO Anette Eberhard through Communication Consultant Søren Weber Stendal, tel. +45 20 19 45 21.