Export Promotion

Exporting goods and services is of vital significance for each economy in an increasingly inter-linked and globalised world. In Austria, the total of exported goods during 2003 amounted to approx. € 78.8 billion. Currently, approx. 7% of all Austrian exports are covered within the scope of the Austrian export promotion system.

However, “export promotion” should not be understood as the granting of subsidies, financial aid or direct payments to exporters. Instead, this system consists of state-supported export guarantees. They insure against certain risks arising when dealing with international contract partners as far as such risks cannot be covered appropriately by private export credit insurers. This type of hedging in the form of guarantees by the Federal Minister of Finance enables exporters the access to favourable financing conditions for their export businesses .

In today's international competitive environment exporting companies intending to succeed have to offer - in addition to their goods and services - adequate risk coverage and financing options. Projects might be large, situated in riskier countries outside the OECD and require multisourcing. Private export credit insurance and financing instruments do not offer sufficient facilities. This is the main reason why states with exporting companies run state-supported export credit systems (EU and OECD countries, also emerging markets such as India, Brazil, South Africa, etc.). The Austrian export promotion system enables Austrian exporters to participate under fair competitive conditions in international markets .

The Oesterreichische Kontrollbank AG ("OeKB") has been authorised by the Republic of Austria to act as its handling agent for the Austrian export guarantee system.

To facilitate financing exports covered by guarantees, the Federal Minister of Finance is also authorised to assume liabilities for capital taken up by the authorised OeKB on national and international finance markets. These funds are then made available to exporting companies by OeKB's export financing scheme .

The Austrian export promotion system is in accordance with relevant international rules (OECD–, WTO- and EU- rules and regulations). It is designed to be self-supporting due to its fee structure. Exporters have to pay risk adequate guarantee fees.

The so called "Paris Club" (multilateral forum of creditor states) deals with payment difficulties in the field of state-guaranteed export credits and development aid credits. Based on a Paris Club agreement, solutions are implemented bilaterally.

 

 

 

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