EFIC role set to be broadened
September 16, 2009
The role of the Export Finance and Insurance Corporation (EFIC) will be expanded to allow it to provide financial support to a wider range of transactions for Australian SMEs exporting or investing overseas, including those establishing global supply and distribution chains.
Announcing the plan yesterday, Minister for Trade Simon Crean says the changes reflect the increasingly sophisticated role Australian businesses play in the global economy and will help them respond to the global recession.
"Australian exporters face many challenges and find it difficult to access finance for expanding their operations internationally," he says.
"Expanding EFIC’s powers to better support Australian exporters will give a boost to this growing and dynamic sector of Australia’s economy."
Once the amendments are legislated, EFIC will be able to provide loans to SMEs investing in productive offshore operations, allowing them to serve existing export customers better as well as tap into new foreign markets.
This broader ability to lend will allow EFIC to assist SMEs to establish global supply and distribution chains and harness the opportunities from this important new way of trading.
The amendments will also simplify the legislation, streamlining access and reducing compliance costs for applicants.
EFIC CEO Angus Armour says the amendments are crucial at a time when Australian companies are facing challenges accessing finance.
"The 2009 EFIC Global Readiness index showed that access to finance continues to be the most significant barrier faced by Australian businesses going global.
"This expansion of EFIC’s ability to support Australian SMEs is a direct response to the globalisation of markets and the growing participation of Australian businesses in it," he says.