EKG Report - June 2026
Framework agreement signed with Nigeria - dovetailing the promotion of foreign trade and development cooperation
Germany and Nigeria have signed a framework agreement for export credit guarantees totalling 300 million euros. With the financing framework, the Federal Government agrees in principle to provide export credit guarantees in this amount for transactions between German companies and the Nigerian state.
The financing framework aims to facilitate the financing of export transactions and to strengthen Germany as a business location and the German export industry.
The agreement that has now been concluded is the second of its kind. In November 2025, the Federal Republic of Germany was the first country to agree a corresponding financing framework totalling 100 million euros with Namibia.
The financing frameworks are an important building block for more closely dovetailing the promotion of foreign trade and Germany's development cooperation.
Germany is planning to conclude further financing frameworks with newly industrialising and developing countries in the future.
Flex&cover - Monitoring of foreign content - Federal Government specifies conditions
In connection with flex&cover, it was previously unclear in which cases companies with flex&cover status would have to track and report foreign content for individual transactions with a contract value of more than €100 million, even after they had been covered. The Federal Government has now clarified this.
Reinsurance or no reinsurance - that is the question here
The question centres on the extent to which reinsurance is sought via another ECA for a transaction applied for cover.
If the Federal Government deems reinsurance necessary, flex&cover companies are subject to ongoing monitoring obligations with regard to foreign content even after the transaction has been covered. This already results from the reinsurance agreements with foreign export credit agencies.
Three scenarios
In those cases in which the Federal Government decides that reinsurance is not necessary, no monitoring of foreign content is required after the basic commitment.
If the Federal Government examines reinsurance, ongoing monitoring is required until a final decision is made. If reinsurance is granted, monitoring must continue even after cover has been granted. If no reinsurance is concluded, monitoring is not required.
The clarification that has now been made is particularly relevant for export companies with international sourcing structures and large-volume transactions.
Export Credit Guarantees on site - Roadshow in India
At the beginning of May, Stefan Schmidt, Head of Department Underwriting Single Transaction Cover, together with Adelina Papenburg, Senior Underwriting Manager Single Transaction Cover, and Amol Mane, Financing Experts India, were on a roadshow in Delhi, Bangalore and Mumbai.
In cooperation with the Indo-German Chamber of Commerce, they presented export credit guarantees "Made in Germany" to importers and local banks and outlined the special financing options and advantages for Indian import companies.
Stefan, what impressions did you return from India with?
India presents itself as a very dynamic, fast-growing market with great interest in German technologies and financing solutions. During the round table events in Delhi, Bangalore and Mumbai, which were organised jointly with the Indo-German Chamber of Commerce, we were particularly impressed by the high level of commitment and interest shown by Indian importers in familiarising themselves with ECA structures (ECA = Export Credit Agency). At the same time, there is a great need for information on specific applications and processes.
What is the current demand for export cover and export financing "Made in Germany"?
Demand is currently high and continues to be driven by the need for investment in infrastructure, energy and industry. German exports enjoy a very good reputation and export credit guarantees are increasingly being recognised as an important component of competitive financing. In particular, structured financing in local currency is attracting growing interest.
How do you assess the ECA potential in India in the medium term?
In the medium term, we see very attractive growth potential for covered financing in India. The increasing demand for capital coupled with growing openness to international financing instruments clearly speaks in favour of this. India is likely to become one of the most important ECA markets in Asia. Against this backdrop, the Federal Government has also further expanded its international advisory services and has had a financing expert on site since mid-2025.
How can this potential be realised?
Even closer cooperation with local banks and continuous education of the market on the possibilities of Hermes Covers are crucial. In addition, the free trade agreement between the EU and India will further facilitate access. Last but not least, the early involvement of mandataries in project structures is a key success factor.
The first shopping line guarantee was recently realised for an Indian company. What opportunities do you see in the Indian market for this special form of buyer credit guarantee?
Shopping line guarantees offer great potential as they provide Indian companies with fast and flexible access to German exports. This instrument is particularly attractive for recurring investments and small to medium-sized project volumes. We see potential growth here, especially for well-positioned groups of companies.
You will be travelling to India again in the second half of the year. What is on the programme then?
An ECA event is planned for the end of November in Mumbai together with the export credit agencies Atradius (Netherlands), SERV (Switzerland) and OeKB (Austria) with the aim of further strengthening the visibility and understanding of export credit guarantees in the market. In addition, the focus will be on deepening existing relationships with banks and importers and on providing concrete support for promising project approaches.
Stefan Schmidt, Head of Department Underwriting, Single Transaction Cover: "The shopping line cover offer great potential as they give Indian companies fast and flexible access to German exports."
First shopping line cover for Indian company - Federal Government secures credit line of EUR 161 million with export credit guarantees
Shopping line guarantees are a special form of tied buyer credit guarantees. On the one hand, it helps to facilitate access to international procurement programmes for German exporters. On the other hand, it is an attractive offer for foreign importers to increase their sourcing in Germany. The highlight: purchases from various German exporters can be processed quickly and easily via a single, federally subsidised credit line.
India and Germany benefit
At the end of last year, the Federal Government covered a financing facility under the Shopping Line programme for the first time. Now there is another success to report: the first shopping line cover in favour of an Indian company. The lender is DZ Bank. The borrower is the Indian company UFlex Limited - a leading global supplier of packaging films and flexible packaging solutions.
Over the next few years, UFlex Limited will use the federally subsidised credit line to finance imports of machinery and equipment, which it will mainly source from Germany. This will strengthen UFlex's growth and increase export opportunities for German companies.
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