Hermes covers nine muses
A Hermes covers Hermesdeckung German is a credit guarantee export ECG by the German federal government.
These guarantees are an important part of German foreign trade policy and to protect German companies in the event of non-payment by foreign debtors.
Hermes covers system was introduced in 1949 for cases where businesses could find private insurance and became a pillar of the export industry of Germany 1 Today, Hermes guarantees allow exporters to hedge commercial risks against economic risks and political risks country risk the federal guarantee is necessary because it is impossible to get adequate coverage from private insurers, especially against political risks for exports to non-OECD countries .
In 2005, the German government has made guarantees for orders totaling 19 77 billion to 25 billion, representing about 2 5 percent of total German exports About 90 of the cover was recorded by exports to developing countries and States in Central and Eastern Europe, including CIS countries These guarantees only the result of spending by the state if the customer does not pay.
The aim of the Hermes cover, from the perspective of the German state, is the promotion of exports and help create jobs German 2 3.
A study commissioned by the German Ministry of Economics and Technology conducted by Prognos concluded that the net effect of Hermes guarantees on employment is of the order of 140 000 to 210 000 jobs, mainly in mechanical engineering , electrical engineering, and chemicals, most being Hermes guarantees for small and medium SMEs 4.
Collateral management is in the hands of Euler Hermes is lead decisions and PricewaterhouseCoopers on matters of principle and underwriting large export transactions are made by an interdepartmental committee composed not only of representatives of the Federal Ministry the economy and technology, but also the German federal Ministry of Finance of Foreign Affairs and the federal Ministry for economic cooperation and development.
The cost of these export credit guarantees include registration fees, policy issuance costs, commission-dependent risk, a commission depending on the duration and additional costs Costs depend on the type, size and the duration of the transaction and the risk assessment for the importing country in the event of a claim, there is an excess paid by the exporter, usually between 5 and 15 percent.
Risks covered include political risks, such as credit losses due to legislative or administrative measures, war and civil disturbance, losses due to the inability to convert or transfer sums paid in local currency by the debtor due to restrictions in the international payment system, unable to fulfill the contract because of political circumstances and the loss of assets before the transfer of risk to the foreign buyer due to political circumstances, such as confiscated goods or They destroyed also include business risks such as prolonged by default and bankruptcy of the buyer.
Hermes coverage may be granted when the export operations are worthy of support and the risks appear tolerable solvency may result from job security, structural considerations or foreign policy objectives In recent years, the state credit agencies export OCE, including Hermes were increasingly subject to public scrutiny because they have supported projects that some disapproved, for example because of environmental concerns 5.
The environment is an important issue when approving Hermes guarantees When evaluating the application, the environmental effects of projects are an important factor, both in terms of dignity and tolerance of risk As indicated by the Court of Auditors, it is the aim of the German government not to support projects that have serious negative ecological, social or development Since 1 January 2004, the OECD Recommendation on common approaches on environment and benefiting from export credits support 6 7 were applied the procedure laid down, reflects international developments regarding the assessment of environmental aspects by the export credit agencies are common approaches a set of binding international rules for export credit guarantees and the environment, so they can not teni r account of all national peculiarities; For this reason, the German national environmental guidelines of April 26, 2001 have been applied in some areas.
Madeline Chambers August 20, 2015, German industry wants to ensure export growth Reuters.
Action plan for environmental technology from Germany Accelerating Innovation in protecting the environment pdf German Federal Ministry of Environment, Nature Conservation and Reactor Safety Retrieved 2007-01-29 An important instrument in promoting foreign sector credit guarantees to the federal export Hermes blanket with export credit guarantees the federal government strengthen the competitiveness of German companies, especially SMEs There is therefore an important contribution to the protection of jobs in Germany in 2005, the federal government supported export credit guarantees of $ 19 8000000000 72 2 of total exports heading towards emerging economies and developing countries and 18 for Central Europe and Eastern.
AuslandsGeschäftsAbsicherung der Bundesrepublik Deutschland Foreign Trade and Investment Promotion Program of the Federal Republic of Germany Euler Hermes Kreditversicherungs-AG and PricewaterhouseCoopers Retrieved 2007-01-28 There is a link to that site from the Federal Ministry website German economy and technology.
Inge Weidig; Sönke Jens; Konrad Haker; Henrike Mohr December 29, 2000 Kurzfassung - Evaluierung Arbeitsplatzeffekte der der Hermes-Ausfuhr Gewährlesitungen-des Bundes Nr Proj July 00 Evaluation of the effects of the use of federal Hermes export guarantees PDF Basel Europäisches German Zentrum für Wirtschaftsforschung und Strategieberatung European Research Center economic and consultation on the strategy; Prognos archived pdf Original 2007-09-27 Retrieved 2007-01-28.
ECA Watch ECA shows Problems Germany International NGO Campaign on credit agencies export Euler Hermes Kreditversicherungs-AG Retrieved 2007-01-29 Hermes, the German ECA, has guaranteed some of the most controversial projects in the world, including the dam of the Three Gorges dam Tehri BTC pipeline and the Paiton power plant 2 is often criticized for its lack of transparency and environmental standards.
Recommendation on Common Approaches on Environment and Export Credits receiving support pdf OECD Retrieved 2007-01-28.
Action plan for environmental technology from Germany Accelerating Innovation in protecting the environment pdf German Federal Ministry of Environment, Nature Conservation and Reactor Safety Retrieved 2007-01-29 International cooperation between export credit insurers in the industrialized OECD countries in 2005 focused among others on the adoption of a new consensus text on the payment terms flexibilized for structured project financing and funding and for export transactions in the renewable energy and water projects, which is in force since 1 July 2005, the OECD member states have agreed to extend the maximum allowable repayment term in the field of energy renewable and water projects and waste water to 15 years of experience with the environmental guidelines of the expanded OECD, which came into force on 1 January 2004, will be taken into account in the review process of 2006.
Hermes cover, hermes, cover, German Federal Ministry.