Comparison of export finacing program s in Germany and Czech republic

Jan Pícha

This paper demonstrates increasing and necessary role of European Export Credit Agencies (ECAs) and development banks for reaching success of European exporters in developing markets. Construction and engineering industries have been heavily affected by recent economic conditions and debt crises on national levels. Such a situation resulted in shortage of construction bids in the whole Europe. Taking advantage of national export credits and guarantee programs can result in significant competitive advantage in company’s expansion to developing markets worldwide. The markets of Eastern Europe, Middle East and Asia are specific with neglected infrastructure and represent a huge potential for European firms possessing necessary exporting know-how and technologies. In order to withstand the pressure resulting from increasing market competition, exporting firms are forced to come out with tailor made solutions and high level of value added. Delivering project construction together with secured project financing proved to be the key success factor in developing markets which enables European firms to succeed in highly competitive international bids. Ambition of this paper is to introduce and compare export financing programs including availibility of credit insurance in the Czech Republic and Germany.

Export financing, Competitive advantage, Export Credit Agency, Insurance.