The credit agency set up to help Australian companies do business abroad is to receive new powers following a review.
in exporters’ credit
The Minister for Trade and Competitiveness, Craig Emerson released the Government’s response to the Productivity Commission’s inquiry into Australia’s export credit arrangements which focused on the Export Finance and Insurance Corporation (EFIC).
Chief Executive and Managing Director of EFIC, Angus Armour said the announcement endorsed EFIC’s continued focus on supporting small and medium enterprise (SME) exporters and broadened its powers to support SMEs developing or participating in global value chains.
Mr Armour said that under the changes outlined, EFIC is to apply a new market failure test to help it determine an exporter’s eligibility for its financial products and services.
“It will also be given new powers to better support Australian manufacturing and service businesses participating in global and regional value chains,” he said.
Mr Armour said the announcement meant the agency could expand support for SMEs, particularly for SMEs participating in export supply chains or developing their supply chain capabilities.
“The 2011-12 Financial Year marked the first time EFIC surpassed the A$1 billion mark in terms of its export finance facilities, with this level supporting exports and overseas investments of over A$4.5 billion,” he said.
“At the same time, our services for medium and larger exporters remain an integral part of our business.
“A core area of this support will be for those larger exporters looking towards frontier and emerging markets,” Mr Armour said.
Edition 347, 5 February 2013