The export lending and working capital schemes administered by EKF since 2009 when they were established will now be extended. The export lending scheme is extended for four years until the end of 2015 with a total loan facility of DKK 20 billion. The working capital scheme is made permanent with a total limit of DKK 2 billion. The continuation of the schemes is part of the Danish government’s growth policy which has just been published in the agreement “Denmark as a growth country”.
The continuation of the schemes is good news for Danish export companies and their banks. Also in the future they will be able to make use of working capital guarantees and export loans from EKF and secure the completion of their export transactions.
The export lending and working capital schemes were established in 2009 as temporary measures designed to strengthen Danish exports during the financial crisis but even in 2011 many export companies continue to have difficulty financing their activities. This is an impediment to Danish economic growth and it is against this background that the schemes are now extended even though they were supposed to expire at the end of 2011.
As the schemes are extended they will also – according to the text of the agreement - be made more flexible and attractive to small and medium-sized enterprises in particular. The export lending scheme for example will now include the possibility of loans with tenors below two years as well as working capital loans in connection with export.
While the Danish government, the Danish People’s Party and the independent MP Pia Christmas-Møller, who are behind the agreement “Denmark as a growth country”, have decided to extend the schemes, it is still too early to say how this new agreement translates into practice. EKF will revert with more information as soon as it has been determined.