EFIC media release - 26 October 2012
Australia’s export credit agency provides record number of export facilities amid continued volatility in financial markets
Australia’s export credit agency, Export Finance and Insurance Corporation (EFIC) has posted strong results amid ongoing volatility in financial markets, providing a record number of facilities in 2011-12, according to its Annual Report released today.
The year marked the first time EFIC has surpassed the A$1 billion mark in terms of its export finance facilities, with this level supporting exports and overseas investments worth A$4.5 billion.
Profit on EFIC’s commercial account in 2011-12 was A$26.8 million; 19.6 per cent ahead of budget. This figure reflected the continued strength of the agency’s risk underwriting and portfolio performance.
“These strong results were delivered in a year of significant volatility, marked by an uneven recovery in the global economy and in commercial credit markets and a high Australian dollar,” EFIC chief executive officer and managing director Angus Armour said.
“We continued to help Australian exporters of all sizes overcome financial barriers by supporting exports to more than 40 countries. SMEs accounted for over 90 per cent of total facilities and we were also particularly active in supporting the mining sector, which accounted for just over 60 per cent of EFIC’s new signings by dollar value, as well as the construction sector.”
During the year, EFIC expanded its support for contractors and subcontractors providing services for export-related projects. It also partnered with foreign currency services providers OZForex and HiFX to help exporters overcome the barriers presented by ongoing foreign exchange risk and the high Australian dollar.
Looking ahead, Mr Armour said the challenge for EFIC in the coming year was to adapt to the structural change in the Australian economy.
“In response, we will continue to adapt our products and approaches to help Australian firms win new export and export-related contracts,” he said.
He added that 2011-12 saw the Productivity Commission launch its inquiry into Australia’s export credit arrangements and release its final report.
“EFIC made two detailed submissions to the inquiry and looks forward to working with the Government as it considers the outcomes of the review.”
Copies of the Annual Report can be downloaded from www.efic.gov.au/annual-report.
About Export Finance and Insurance Corporation
Export Finance and Insurance Corporation (EFIC) provides tailored finance solutions to help Australian businesses overcome the financial barriers they face when expanding their export activities.
As the Australian Government’s export credit agency, we help Australian-based businesses to win and finance export, offshore investment and onshore export-related opportunities when their bank is unable to provide all the support they need.
We work directly with businesses and their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small enterprises.
EFIC is uniquely placed to do this: we have over 50 years of export finance and industry expertise, contacts at financial institutions around the globe, the strength of our AAA credit rating and an entrepreneurial business approach to make export and eligible export-related deals happen.
We practise responsible lending and uphold social and environmental best practice in the transactions we support.
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