As one of the leading industrialised nations, the Federal Republic of Germany is among the largest consumers of raw materials worldwide and therefore a stable and reliable supply of raw materials is of crucial significance for the German industry. However, due to the limited resources of domestic raw materials, Germany is dependent on the supply of raw materials from abroad. The issue of a sufficient raw material supply lies first and foremost with the companies themselves. However, supply constraints, distortions in trade, drastic price increases as well as political influences aggravate the supply situation and impede the access to certain raw materials for German companies. Here, the Untied Loan Guarantees of the Federal Republic of Germany come into play, which, since 1961, have facilitated the access to raw materials abroad.
Die UFK-Garantien werden kontinuierlich weiterentwickelt, um deutschen Unternehmen auch bei veränderten Rahmenbedingungen die nötige Flankierung zu bieten. Bisher wurden UFK-Garantien ausschließlich zur Finanzierung von konkreten Neu- oder Erweiterungsinvestitionen von Rohstoffprojekten im Ausland übernommen, aus deren Produktion nach der Inbetriebnahme Rohstoffe an deutsche Abnehmer geliefert werden. Rohstoffverarbeitende Unternehmen in Deutschland sollten jedoch auch Möglichkeiten nutzen können, langfristige Abnahmeverträge mit ausländischen Rohstoffproduzenten unabhängig von konkreten neuen Rohstoffprojekten abzuschließen.
The Untied Loan Guarantees are continuously being further developed in order to offer German companies the necessary support even when the general conditions change. So far, Untied Loan Guarantees have only been granted to finance concrete new or expansion investments in raw material projects abroad, from whose production raw materials are delivered to German customers after commissioning. However, raw material processing companies in Germany should also be able to take advantage of opportunities to conclude long-term purchase agreements with foreign raw material producers independently of specific new raw material projects.
Support of transformation projects
Untied Loan Guarantees protect lenders in foreign raw material projects from the risk of commercial and political default and are a central component of the Federal Government’s raw materials strategy (DE).
The importance of securing raw materials and energy supplies as well as of diversifying markets and supply chains has increased. his applies equally with regard to foreign trade promotion. In this context, the importance of Untied Loan Guarantees as an instrument for supporting raw materials and transformation projects has grown.
Demand for Untied Loan Guarantees rose significantly in the past. Various projects were successfully executed, including the provision of finance for a battery cell factory in Hungary and the purchase of liquefied gas. In addition, eligibility for cover was confirmed for a large number of projects that are still in the development phase. These include projects involving imports of copper, nickel, cobalt, lithium, battery cells and green hydrogen, thus demonstrating the wide scope of the Untied Loan Guarantee.