Government support for export finance in 15 countries compared

Export finance enables businesses to expand into global markets by mitigating financial risks and providing access to capital. Governments worldwide support exporters through Export Credit Agencies (ECAs), which offer guarantees, loans, and insurance to facilitate trade.

While the core mechanisms are similar, the scope and structure of export finance programs vary significantly between countries.

This article explores how governments support companies with export finance, compares the maximum support amounts across 15 countries, and highlights key differences.

Containers for export

Key mechanisms of export finance

Governments use various tools to support exporters:
  1. Export Credit Guarantees: Reduce risks for banks or investors by ensuring repayment in case of buyer default.
  2. Working Capital Loans: Provide guarantees for pre-shipment financing.
  3. Insurance Policies: Protect exporters from non-payment risks in challenging markets.
  4. Buyer Financing: Extend credit lines to foreign buyers of domestic goods and services.
  5. Interest Rate Subsidies: Offer subsidized rates for long-term export credits.
Export finance programs provide numerous benefits:
  • Risk Mitigation: Guarantees protect businesses from non-payment risks in volatile markets.
  • Increased Competitiveness: Subsidized financing terms make exporters’ products more attractive globally.
  • Access to Capital: Working capital loans enable businesses to fulfill large international orders.
  • Market Expansion: Programs targeting specific regions or industries help businesses enter new markets.

Comparison of Export Finance Programs Across 15 Countries

Country Maximum Support Amount Key Features
United Kingdom (UKEF) £8.8 billion annually Guarantees up to 80% of bank loans; includes buyer financing and insurance.
United States (EXIM) $135 billion exposure cap Offers working capital loans, guarantees, and buyer financing.
Netherlands (Atradius EKV) Unlimited (government-backed) Full risk coverage for capital-intensive exports like machinery.
Germany (Euler Hermes) €30 billion annually Focuses on SMEs; offers buyer credit guarantees and untied loan guarantees.
France (Bpifrance Assurance Export) €12 billion annually Includes guarantees for green energy projects and large infrastructure.
China (Sinosure) $11 billion annually Covers high-risk markets; focuses on large-scale infrastructure projects.
Italy (SACE) $10.9 billion annually Offers green transition incentives alongside traditional guarantees.
Sweden (EKN) $5.4 billion annually Focuses on renewable energy exports; high-risk market coverage.
Canada (EDC) CAD $100 billion exposure cap Provides direct lending, insurance, and political risk coverage.
Australia (Export Finance Australia) AUD $6 billion annually Recently expanded mandate to include climate projects.
Japan (NEXI/JBIC) Not disclosed Offers overseas investment loans and buyer financing for Japanese exporters.
Poland (BGK DOKE Program) Not specified Subsidizes interest rates for medium- and long-term export credits.
India (ECGC) INR ₹50,000 crore ($6 billion approx.) Provides credit insurance and working capital loans for SMEs.
South Korea (KEXIM/K-SURE) $50 billion exposure cap Supports shipbuilding, electronics, and infrastructure exports.
Brazil (BNDES Exim) BRL R$20 billion ($4 billion approx.) Offers pre-shipment and post-shipment financing with competitive rates.

Substantial Differences Between Countries

While many export finance programs share common goals, there are significant differences in their scope, focus areas, and eligibility criteria:
  • Scope of Coverage: Countries like the Netherlands offer unlimited government-backed guarantees for capital-intensive exports, while others like Poland focus on specific sectors such as renewable energy or infrastructure. The U.S. EXIM Bank has a broad mandate covering various industries but prioritizes sectors like aviation and manufacturing.
  • Interest Rate Subsidies: Poland’s BGK DOKE program stands out by subsidizing interest rates on medium- to long-term export credits—an uncommon feature among ECAs.
  • Regional Focus: Canada’s EDC prioritizes North American trade while also supporting emerging markets. Japan’s NEXI focuses heavily on Asia-Pacific trade routes while offering competitive terms for large-scale investments.
  • Support for SMEs: Germany’s Euler Hermes tailors its programs to SMEs by offering simplified application processes and smaller loan sizes. India’s ECGC similarly focuses on SME exporters with credit insurance products designed for smaller transactions.
  • Risk Appetite: China’s Sinosure actively supports high-risk markets in Africa and Asia, making it an essential player in Belt & Road Initiative projects. Sweden’s EKN focuses on renewable energy exports but is more conservative in covering high-risk regions.
  • Green Transition Incentives: Italy’s SACE has introduced green transition incentives alongside traditional export finance tools. France’s Bpifrance prioritizes green energy projects under its export finance portfolio.

Conclusions

First of all, export finance programs differ a lot per country. And there are also numerous countries who have no program at all. 

As the focus and conditions may differ, bank financing will still play an important role. However, using export finance schemes, companies may decrease their reliance on bank financing, thus getting a better balance sheet and possibly better rates.

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