Export and Investment Guarantees

The Republic of Austria via the Federal Minister of Finance is authorized to issue guarantees according to the Export Promotion Act (AusfFG) up to a maximum liability of € 40 bn. Since 1950, the Oesterreichische Kontrollbank (OeKB) has been entrusted by the Republic of Austria as its authorized agent. The Austrian Ministry of Finance via the OeKB provides a tailor made guarantee to secure business activities for Austrian companies against political and commercial risks.

Guarantees and Guarantees by Aval (Guarantees for bills of exchange)

To facilitate Austrian companies’ access to distant markets and countries, export guarantees (export guarantees and guarantees for bills of exchange) are issued within the Austrian export promotion system in exchange for payment of risk-appropriate guarantee fees. These fees are in accordance with international rules and regulations (OECD, EU etc.) to ensure that the system operates in a self-supporting manner.

This allows companies to protect themselves against political and economic risks, in particular production risk (risk of contractual non-acceptance of ordered deliveries and services) and credit risk (risk of non-payment for delivered goods and services) in the respective export country. Additionally, guarantees can also cover costs for market development objectives.

Under the Export Promotion Act (AusfFG), Austrian companies can be supported in their foreign investments both through participation guarantees – insurance against the political risk of the investment target country – and through guarantees by aval (guarantees for bills of exchange) for investments. Guarantees by aval serve to facilitate financing of export transactions as well as financing of Austrian direct investments abroad. The Federal Ministry of Finance (BMF) is committed to a sustainable export promotion policy, which also includes an exit plan for guarantee commitments for projects in the fossil energy sector.

These instruments are in accordance with international agreements and duties concerning the OECD and the WTO. Environmental and social aspects, combating corruption and sustainable lending principles are taken into consideration. The transactions insured have inter alia to contribute to sustainable development and therefore arms and nuclear goods are excluded from cover. As the Austrian Federal Minister of Finance acts as guarantor, all incomes and expenses of this system are reflected in the federal budget.