For over 75 years, Hermes Cover, officially known as the Federal Export Credit Guarantees (Hermes Cover), has been a cornerstone of German foreign trade, supporting German exporters and their financing banks in navigating the complexities of international business. This program, a flagship initiative under the broader umbrella of Germany's Foreign Trade and Investment Promotion Scheme, has played a pivotal role in the nation's economic success, fostering growth and securing market access in diverse global markets. This article will delve into the history of Hermes Cover, examine its current structure and the recently announced "new package of measures," discuss the ongoing efforts to modernize the program ("Making state export credit guarantees fit for the future"), and explore its crucial role in promoting German exports ("Promoting Export with Hermes Cover"). We will also provide guidance for businesses interested in utilizing Hermes Cover ("Export Credit Guarantees Hermes Cover Guidance") and commemorate the significant milestone of Euler Hermes Deutschland’s centenary ("100 years Euler Hermes Deutschland as navigator for business").
History:
The origins of Hermes Cover can be traced back to the post-World War II era. Facing the challenges of rebuilding its economy and re-entering the global marketplace, Germany recognized the need for a robust mechanism to support its exporters in securing contracts and mitigating the risks associated with international trade. The initial framework laid the groundwork for a system that would evolve over the decades, adapting to changing global economic landscapes and expanding its scope to encompass a wider range of risks.
The early years saw a focus on providing guarantees for relatively low-risk transactions. However, as German companies increasingly ventured into emerging markets and undertook larger, more complex projects, the scope of Hermes Cover expanded to include a broader spectrum of risks, including political risks (such as war, civil unrest, and expropriation), commercial risks (such as buyer insolvency), and transfer risks (related to currency convertibility). This evolution reflected a growing recognition of the need for comprehensive risk mitigation to support German companies' global ambitions.
The program's name, "Hermes," is a nod to the Greek god of trade and commerce, reflecting its core purpose of facilitating and protecting German exports. Over the years, Hermes Cover has become synonymous with reliability, stability, and a commitment to supporting German businesses in their international endeavors. Its success can be attributed to a combination of factors, including a well-defined legal framework, a rigorous risk assessment process, and a collaborative approach involving government agencies, banks, and export-oriented companies.
The New Package of Measures:
Recognizing the dynamic nature of the global economy and the evolving challenges faced by German exporters, the German government recently announced a new package of measures aimed at modernizing and strengthening Hermes Cover. These measures address several key areas:
* Increased Sustainability Focus: The new package emphasizes the integration of environmental, social, and governance (ESG) criteria into the risk assessment and approval process. This reflects a growing global emphasis on sustainable development and aims to ensure that Hermes Cover supports only projects that meet high environmental and social standards. This includes stricter scrutiny of projects with significant environmental impact, promoting projects that contribute to climate change mitigation and adaptation, and aligning with international sustainability goals.
* Digitalization and Efficiency Improvements: The program is undergoing a significant digital transformation to streamline processes, improve efficiency, and enhance transparency. This includes the implementation of new digital platforms and tools to facilitate communication, data sharing, and risk assessment. The aim is to make the application process more user-friendly and reduce processing times.
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