EFIC supports $2.2bn of Australian exports and overseas investments in
2007-08
Australia’s Export Credit Agency, EFIC, increased the support it provided to Australian companies exporting and investing overseas by 62% in the last financial year. In 2007-08 EFIC supported $2.2bn of exports and overseas investments through new facilities totalling $365m.
EFIC’s Annual Report tabled in Parliament today provides details of the transactions it signed including financial facilities for 29 new structured trade and project finance transactions. Of these, 7 were National Interest Account facilities that totalled $4m and supported export contracts worth $18m.
In 2007-08 EFIC also signed 31 Headway facilities to provide guarantees for small to medium Australian businesses that created $100m in exports for the sector.
Engineering services and construction were the main sectors supported by EFIC in terms of value equating to 71% of transactions; manufacturing and construction were the sectors most prevalent in number representing 73% of all signings.
Managing Director, Angus Armour said EFIC had largely avoided the problems many financial institutions had faced in the last 12 months.
“EFIC has a strong Risk Management Framework. The assessment and underwriting of risk is central to EFIC’s financial management as is maintaining appropriate capital and reserves to support the level of risk that it accepts.”
As a result, EFIC reported a Capital Adequacy Ratio of 21.7%.
Mr Armour predicts that the state of global credit markets will mean EFIC and its services become more important to Australian companies looking to finance international growth.
“Turbulence in world financial markets continues to influence EFIC’s operating environment,” says Mr Armour. “The tightening credit conditions and a lower risk tolerance in global financial markets create opportunities for EFIC to collaborate with banks and insurers to meet the needs of profitable Australian companies exporting and investing overseas.”
To view the electronic version of the Annual Report click here.