Dutch exporters are set to able to access more financing, following the launch of a new export credit guarantee scheme.
The scheme has been set up by the Dutch Ministry of Finance, in cooperation with the ministry of economic affairs, banks and Atradius to support Dutch exporters of capital goods.
The scheme aims to support banks raise funds in the capital market for export financing. It will allow capital market parties, such as pension funds, to obtain cover from the Dutch state when they lend to banks using the funds to finance Dutch exports.
"Atradius Dutch state business acts on behalf of the Dutch state and is the operator of the scheme towards the banks,” explains Vinco David, head of international relations, development and marketing, Atradius state business.
“The financially responsible party is the ministry of finance, which oversaw the establishment of this facility aimed at refinancing banks that are financing Dutch exporters," he adds.
Eligible Dutch and foreign banks can submit guarantee applications to the Dutch government up until the end of this year, although an extension of this date is under consideration and a decision will be made by the end of 2009.
With liquidity still relatively scare, and banks coping with higher cost of funds and heightened risk perception, exporters are still struggling to access the necessary financing needed to win orders.
“The goal of the guarantee is to increase lending capacity to Dutch exporters of capital goods,” explains Johan Schrijver, director of Atradius Dutch state business.
In particular, it is the financing capacity for capital goods exports that has tightened the most, due to the medium and long-term nature of the financing required. This scheme aims to target these needs rather than focus on the short-term business.
Reader Comments