Export and Investment Guarantees
The Republic of Austria via the Federal Minister of Finance is authorised to issue guarantees according to the Export Guarantees Act up to a maximum liability limit of € 40bn. OeKB is acting in this business on behalf of the Austrian Federal Ministry of Finance. Due to different business activities a tailor made guarantee from the Ministry of Finance is provided to secure business activities for Austrian companies against political and commercial risks.
Guarantees of the Minister of Finance according to this Act are covering:
- transaction specific risks (pre-credit, performance and credit risks etc.) and
- political investment risks as well as
- guarantees by avals (guarantees for bills of exchange) covering mainly domestic credit risks of companies in need of working capital for their export and investment activities. For small and medium sized companies this is done via Oesterreichischer Exportfonds GesmbH.
All risk coverage instruments assure appropriate financing access in connection with international business activities.
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.
For these guarantees the insured exporters and investors have to pay risk adequate premia fees according to international rules and regulations (OECD, EU etc.) to ensure that the system operates in a self-supporting manner.
As the Austrian Federal Minister of Finance acts as guarantor all incomes and expenses of this system are reflected in the federal budget.