Panoramic view over the Container Terminal Tollerort (CTT) of Hamburg Hafen und Logistik AG (HHLA). (picture alliance/dpa)
The German government provided credit guarantees for 21 billion euros worth of exports by German companies in 2019. That's six percent more than the year before, according to the Federal Ministry of Economics. Most of those guarantees were for goods heading to emerging economies and developing countries, which accounted for three-quarters of all new business.
With these export credit guarantees, also called Hermes cover, Germany's government insures exporters' transactions against bad debt losses for commercial or political reasons, absorbing a large part of the risk of payment default.
According to the economics ministry, export credit guarantees once again generated a positive result of 640.4 million euros for the federal budget.
The total volume of guarantees for German companies' foreign investments almost tripled from the previous year. According to the ministry, the German government granted investment guarantees of 3.3 billion euros of projects in 16 countries in 2019. The biggest investment destination was China, followed by Argentina, Mexico, Kuwait and India.
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