The Export Finance and Insurance Corporation has increased the value of the new facilities it provided to assist Australian businesses exporting and investing overseas by 56% in the last financial year. EFIC’s 2008-2009 Annual Report stated that the agency provided 26 facilities, including bonds, guarantees and loans, to Australian companies large and small.
EFIC signed a further 25 EFIC new facilities and renewals, known as Headways. Headways are in place to provide working capital guarantees for small to medium businesses. 84% of signings in the 25 EFIC new facilities represented the manufacturing and mining sectors. The EFIC supported these industries in terms of value. In terms of number of transactions, manufacturing was the main sector, accounting for 65% of signings.
CEO and Managing Director Angus Armour said that EFIC had been in a unique position to support the Australian Government’s initiatives to mitigate the effects on exporters of the economic downturn. “We are increasing our capabilities within our existing mandate so we can support a wider range of transactions in exporting – by revising our current services and exploring new ones. EFIC has also worked in international forums, particularly the Berne Union and Asian Exim Banks Forum, to find ways to support world trade.”
“Despite signs of a modest recovery in the world economy and an easing of the financial crisis, markets are still uncertain and credit will remain tight. As a result, we anticipate increased opportunities for EFIC to support Australian companies in 2009-10 and beyond.”