8 July 2011
At the end of May 2011 the Danish government, the Danish People’s Party and Pia Christmas-Møller (Conservative People’s Party) published a joint growth policy under the agreement on “Denmark as a Growth Nation”. The agreement included a bill to make the working capital guarantee scheme from 2009 permanent. This bill has now been passed by the Parliamentary Finance Committee in a special resolution prescribing that the working capital guarantee scheme will in the future be a permanent part of EKF's services to Danish companies.
“At EKF we are very pleased to be in a position to continue offering working capital guarantees to Danish companies. To date we have assisted more than 110 exporters and their sub-contractors by providing guarantees worth a total of DKK 1 billion, but we can assist a great many more. With that in mind it is very positive that the companies have already been informed that the scheme is here to stay, since this will enable them to plan the financing of their exports beyond 2011,” says EKF CEO Anette Eberhard.
The Danish Federation of Small and Medium-Sized Enterprises, which counts many exporters amongst its members, also expressed its satisfaction with the decision to establish this as a permanent scheme.
“The Danish Federation of Small and Medium-Sized Enterprises has been calling for an extension of the scheme, as it means a great deal to our member enterprises in that it enables them to secure financing for their exports. We are therefore exceedingly pleased that it will be a permanent option in future, and we know that the news will be enthusiastically received by our members,” says Frank Korsholm, head of political advocacy in the Federation.
So far EKF has administered the working capital guarantee on behalf of the government, but the funds earmarked for the scheme will now be transferred to EKF so that in future the guarantees will be available on an equal footing with EKF's other services to Danish exporters. This also means that there is no longer a cap of DKK 2 billion on the guarantee amount.
The working capital guarantee scheme was created in 2009 as part of the government’s business package for small and medium-sized enterprises to promote Danish exports during the financial crisis. The idea was for the scheme to run until the end of 2011, but many exporters are still finding it difficult to secure financing for their activities. This is a barrier to Danish growth and has spurred the decision to make the scheme permanent. Read the Parliamentary Finance Committee Resolution here (in Danish)