EDC hits record business volume

Export Development Canada (EDC) has reported a total business volume of US$82.8bn with a record 8,469 Canadian companies, despite a 24% decline in Canadian exports in 2009.

During 2009, the Canadian government asked EDC to increase the availability of domestic credit to Canadian businesses during the global credit crisis.

EDC responded by working closely with private Canadian banks, the Business Development Bank of Canada (BDC), credit insurers and sureties, resulting in C$2.5bn in credit being added to the Canadian domestic market.

More than 200 companies were directly helped with their trade-related business in Canada during 2009, with EDC planning continued support for domestic transactions for the duration of its domestic powers.

Furthermore, the agency increased the amount of business conducted in partnership with Canadian banks, BDC, sureties and other financial institutions both in Canada and internationally by 20%, reaching C$16.9bn.

EDC’s emerging market business saw a decline of 15% from 2008, reaching C$18.bn, but this was 9% less than the overall decline of Canadian exports.

Similarly, the agency’s 2009 business volume for Canadian direct investment abroad was C$4bn, a decline of 15% from 2008.

However, EDC had a net income of C$258mn in 2009, an increase of C$52mn from 2008. An increase in net financing, investment income and extra provision for credit losses are attributed to the net income increase.

The agency has continued to expand its regional presence in Canada by bringing its services closer to the exporting community and to its strategic partners by opening offices in Ville St. Laurent and Drummondville, which brings the total number of domestic offices to 17.

International representations have also been established in Lima, Peru to serve exporters in the Andean region; bringing the total number of international representations to 14.