Exporting capital goods to developing countries can be challenging, especially if financing is difficult for the buyers.
Through DGGF, there are still possibilities.
For Dutch entrepreneurs who want to export capital goods to developing countries, it is sometimes difficult to insure a transaction through regular export credit insurance. Especially when it comes to relatively small buyers. This is because it can be a challenge to attract private finance.
That is why the Ministry of Foreign Affairs has started to offer international financing aimed at developing countries through the Dutch Good Growth Fund (DGGF). For DGGF, the combination of aid and trade is central. On the one hand, the fund focuses on Dutch exports and investments (primarily of SMEs) to developing countries. On the other hand, the fund focuses on local activities in the developing countries themselves. There are currently around 70 countries where projects are eligible for financing through the DGGF.
An important element for this international funding is the development relevance of the individual projects. Here one can think of the creation of employment in the country of the debtor, knowledge transfer or increase in productivity, but other positive effects such as environment, public health or food safety can also play a role in the assessment of the project. The fund is additional to the market and is therefore particularly applicable to a higher risk segment where private funding is not possible.
The Dutch Good Growth Fund covers payment risks up to EUR 30 million. Guarantees can also be covered against the risk that your buyer wrongfully calls them in. Our cover is also available for banks that finance or pre-finance your exports. This allows you to offer your buyer longer payment terms so that it can pay in instalments over several years. At the same time, you free up credit with your bank.
Under certain conditions, the fund can also provide financing of up to €5 million to your buyer. The conclusion of such a financing contract is based on supplier credit and goes together with an export credit insurance policy. Atradius can factor in bills of exchange after the goods have been delivered on the spot. You can find out exactly how this works in the 'advance payments' flyer below. It is also possible for Atradius to provide working capital.
This is subject to a number of additional conditions in addition to our standard conditions. Upon acceptance, you will receive the same insurance documentation as under our regular Export Credit Insurance. You are therefore insured by the Dutch State. The premium is calculated in the same way as for regular export credit insurance.
If your export transaction for capital goods does not fit under our regular Export Credit Insurance, you can still make use of Atradius' export credit insurance and export financing options. In this case, a number of additional conditions must be met, in addition to our regular conditions:
The DGGF is available for a selected number of countries. Check the list to see if the country you want to export to is covered.
Through the DGGF it is also possible to make use of so-called Technical Assistance. Technical Assistance provides support prior to your transaction. This might include support for the exporter when applying to supply the necessary information, or support for the buyer when this contributes to increasing the development relevance or improving CSR aspects of the transaction.
Due to the large number of transactions underwritten by Atradius as part of the DGGF, the maximum limit of this facility has almost been reached. As a result, as of today, we can no longer issue promises of cover, but only advice of cover for DGGF. For exporters who have received an advice of cover and wish to request a policy, the ‘first-come, first-served’ principle applies. As long as there is still capacity under the maximum limit, policies can be issued.
Since a substantial part of our commitments consists of promises of cover (i.e. not policies), we do not expect that we have to disappoint exporters any time soon.
In the Netherlands, all forms of bribery are prohibited and punishable by law. The Dutch State and Atradius DSB do not under any circumstances wish to become involved in transactions involving bribery. It is therefore important that we want to ensure as far as possible that eca-covered transactions are free of bribery. We will therefore ask you to sign an anti-bribery statement at the time we issue a policy to you. You can view a sample of such a statement under downloads.
Atradius DSB and the state have jointly drafted an anti-bribery policy. You can download the document below.
In the Exclusion list export credit insurance (eci), available below, you can find which activities are excluded from insurance by Atradius DSB. As per January 1st 2023 there are new limitations in place for fossil fuel-related transactions resulting from the implementation of the COP26-declaration.