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Foreign Trade and Investment 
Promotion Scheme

The instruments of foreign trade promotion of 
the Federal Government of Germany

Export Credit Guarantees, Investment Guarantees and Untied Loan Guarantees have been established and effective foreign trade promotion instruments of the Federal Government for decades. Export Credit Guarantees (so-called Hermes Cover) protect German exporters and banks financing exports against political and commercial risks. Untied Loan Guarantees are to support raw material projects abroad regarded as eligible for promotion by the Federal Government. Both promotion instruments play an important role in fostering economic growth as well as in protecting and creating jobs. 

Federal Government commissioned Euler Hermes Aktiengesellschaft to manage the federal funding instruments Export Credit Guarantees and Untied Loan Guarantees. Guarantees for foreign direct investments are processed by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft.

One particular target is the promotion of small and medium-sized enterprises. Ensuring equal opportunities in international competition also means not losing sight of the sustainability of foreign activities.

The promotion scheme at a glance

Bild: Key Visual der Exportkreditgarantien des Bundes

Export Credit Guarantees 

Export Credit Guarantees of the Federal Government (also known as Hermes Cover) protect export transactions, in particular in difficult and high-risk markets, against a payment default for commercial / political reasons. 

Bild: Mann in Schutzkleidung auf Baustelle hält ein Tablet in der Hand

Untied Loan Guarantees (UFK)

Untied Loan Guarantees (UFK) of the Federal Government support the external financing of raw materials projects abroad which are eligible for cover and secure the supply of the German industry with raw materials.

Investment Guarantees 

Investment Guarantees of the Federal Government protect direct investments of German companies in emerging markets and developing countries against political risks.   

Financing and insurance of foreign businesses

The German export industry is supported by the Federal Government with various measures. Banks and German companies from a wide range of sectors can use the funding instruments to finance their projects internationally and thus often realise them in the first place.