Sustainability Report

Transcription

1 Oesterreichische Kontrollbank AG The complete perspective. Annual Report Export Services Annual Report Sustainability Report 2007 E x p o r t S e r v i c e s

2 Amounts in EUR million Export Services Highlights Total exports of goods Guarantees of the Republic of Austria under the Export Guarantees Act Number of guarantee holders (with guarantees outstanding) New guarantees issued (contracts) New guarantee offers issued Total guaranteed exports (estimate) Guaranteed exports in % of total Austrian exports Number of new guarantee contracts issued Liability limit pursuant to the Export Guarantees Act Guarantees outstanding (utilisation of the liability limit) as of December 31 Reserve for the future Number of guarantees outstanding Premium income and interest received Total gross claims paid by the guarantor Recoveries Net claims paid by the guarantor Total written off as final losses of which Maastricht-relevant total written off Receivables from claims paid outstanding as of December 31 Net interest rate relief (debt relief) granted Export Financing Scheme operated by the OeKB Number of banks/exporters involved Number of export financing contracts outstanding New refinancing contracts issued New refinancing offers issued Refinancing contracts and offers (commitments) outstanding as of December 31 Refinancing contracts (without offers) outstanding as of December 31 of which disbursements outstanding Amounts disbursed Repayments received Net change in disbursements Total financing volume under the refinancing scheme Liability limit pursuant to the 1981 Export Financing Guarantees Act Utilisation of the liability limit as of December 31 Reserve for the future Total of new guarantees issued 94, , , ,500 5,505 1,804 7, ,000 30,939 4,061 3, , /1,500 3,600 5, ,192 25,942 23,166 4,235 3, ,096 30,000 24,251 5,749 6,799 1,500 1,400 8,714 12,316 1, ,297 5, ,106 35,000 32,108 2,892 3, , /1,600 4,000 7, ,465 28,122 25,606 7,820 5, ,440 35,039 30,000 27,084 2,916 10, ,225 45,000 37,460 7,540 3, /1,500 4,000 9, ,919 32,692 29,537 8,726 4, ,931 38,395 40,000 32,573 7,427 14,416 Sources: 1 Statistik Austria 2 December 2007 forecast by the Austrian Institute of Economic Research 3 Reduction due to the withdrawal of the Federal Republic from the short-term business and increase in total volume of exports.

3 E XPORT S ERVICES The complete perspective. Export Services Annual Report 2007

4 OeKB The complete perspective 2007 E XPORT S ERVICES Johannes Attems Rudolf Scholten 2

5 OeKB The complete perspective 2007 Foreword by the Board of Executive Directors. Dear Madam, dear Sir, Austria s national economy may seem small by international comparison. However, it stands out for a competitive advantage which is crucial in the international setting. We are able to adjust quickly to the changing demands of the global economic dynamics. Austria s predominantly small and medium-sized enterprises are reputed for being innovative, for their well-trained skilled workers and their expertise in intercultural dialogue. Austria s successful companies calculate carefully, basing their action on high risk awareness. On their growth path they take advantage of the proven export guarantees of the Republic of Austria as well as credits extended by their house banks and refinanced through the OeKB. This is clearly illustrated by the highly favourable statistics of our Export Service. The private credit insurance market in which the OeKB Group is successfully represented with its subsidiaries OeKB Versicherung and Prisma has also been flourishing in Furthermore, the OeKB itself is expanding its international activities. In this context, new alliances with credit insurers in Central and South Eastern Europe as well as the subsidiary Oesterreichische Entwicklungsbank AG (OeEB) founded in early 2008 should be mentioned. Our subsidiary paves the way for private-sector projects conducted on behalf of the Republic of Austria in poorer countries that are valuable from the perspective of development policy. As you know, projects with a potentially strong environmental impact are subject to special conditions throughout the OECD area. As the official export credit agency, the OeKB has speedily implemented all international agreements. We also strive for a constructive dialogue between the foreign trade sector and a critical public. For this reduces the reputational risks of the exporters and investors and, in the ideal case, improves the quality of a project. An example of such a project is the Turkish hydroelectric plant Ilisu which is being built subject to stringent requirements of the export credit agencies and to ongoing monitoring of an independent expert committee. Two special awards, which we received in 2007, clearly show that the OeKB s commitment to a sustainabilityoriented management won renown for its consistency and effectiveness. We were granted the Trigos Award for Companies with Corporate Social Responsibility for our micro-financing projects in Senegal and Burkina Faso. In 2007 we won the Austrian Sustainability Reporting Award (ASRA) for the second time. Public recognition is an incentive to continue pursuing our strategy consistently in the interest of all stakeholders. Johannes Attems Rudolf Scholten 3

6 OeKB The complete perspective 2007 E XPORT S ERVICES Export Service in Austria. Organisations. International conditions Paris Club OECD European Union Federal Ministry of Finance (BMF) Advisory council Legislator Export Credit Agencies International financial markets Banks Exportfonds (ECAs) Berne Union Private export credit insurance companies Media and civil society Austrian Development Agency (ADA) Austria Wirtschaftsservice (aws) Foreign trade organisations of the Austrian Federal Economic Chamber Federal Ministry for European and International Affairs (BMeiA) Austrian Federal Economic Chamber (WKO) Exporters and foreign investors Customers Federal Ministry of Economics and Labour (BMWA) International sales markets 4

7 OeKB The complete perspective 2007 Export Service in Austria. Background. Hedging against export risks As the authorised agent of the Federal Republic, the OeKB is Austria s official export credit agency (ECA). It acts on the basis of the Export Guarantees Act and international arrangements adopted by the OECD and EU. In its capacity as a service provider to the Federal Ministry of Finance, it manages the export guarantee system for non-marketable risks of foreign deals with commercial success. An advisory council has been set up within the Federal Ministry of Finance to review the applications for guarantees examined by the OeKB. The guarantees are assumed by the Federal Minister of Finance. The marketable risks are covered by private export credit insurance companies. Financing foreign transactions The OeKB raises financing funds through bond issues on international financial markets on advantageous terms. They are used for refinancing exports and foreign investments through commercial banks. The excellent credit rating of the OeKB (AAA/Aaa) is based on a guarantee by the Republic of Austria, for which the OeKB pays a fee. Prerequisites for financing in the framework of the export financing scheme of the OeKB are an export guarantee of the Federal Republic, an adequate guarantee of a credit insurer, a guarantee of Austria Wirtschaftsservice Gesellschaft mbh (aws) or an adequate guarantee of an international organisation. Efficient counselling network with commercial banks The owners of the OeKB are commercial banks. The OeKB is linked with them by an efficient cooperation in counselling concerning export guarantees and as an institution refinancing financing transactions. Another financing partner of the banks for small and medium-sized companies is the Exportfonds. Export Service Network Thanks to the Austrian Federal Economic Chamber (WKO) and its foreign trade organisations, domestic exporters benefit from first-rate support in their international activities in Austria and around the world. WKO and the OeKB closely cooperate in this area. This intensive cooperation has become manifest in the joint investment in the Exportfonds. The OeKB also acts as a partner in the internationalisation campaigns of the Federal Ministry of Economics and Labour. In the international arena the OeKB networks with other ECAs through insurance agreements and within the interest representation of the Berne Union. International debt arrangements Sometimes a debtor country cannot meet the payment obligations vis-à-vis the creditor countries. In the so-called Paris Club claims guaranteed by the Federal Republic and claims from development aid loans are negotiated and rescheduled. The OeKB provides counselling to the Republic in this context. 5

8 OeKB The complete perspective 2007 E XPORT S ERVICES The people behind the OeKB Export Service. In Austria exporters and foreign investors have speedy and unbureaucratic access to tailored solutions protecting them against default in payment and guaranteeing them favourable conditions for financing transactions abroad. The comprehensive know-how of the OeKB Export Service forms the basis for these solutions. Export Guarantees Project Underwriting On the following pages you will find the names of the people contributing on a daily basis to the success of the Austrian export sector by closely cooperating with companies, the Federal Ministry of Finance, the Economic Chamber Austria, the credit industry and many other partners. Ferdinand Schipfer Our exporters and foreign investors are successful because they are faster, Ferdinand Schipfer outlines a key factor of Austria s global competitiveness. And he adds: Moreover, they are backed by strong financial service providers, who support them in an equally dynamic way. There is hardly any other country like Austria where politics, the Economic Chamber, the Export Credit Agency and credit industry are coordinated so well and cooperate so quickly. Schipfer spends his holiday in the countries with which he deals professionally: Then I enjoy every-day life, regional specialities and the local culture. 6

9 OeKB The complete perspective 2007 Export Guarantees International Relations and Services Export Guarantees Claims Management Sylvia Doritsch-Isepp Christine Dangl Austrian managers are excellent networkers. Sylvia Doritsch-Isepp, who enjoys activities in nature but also art and culture in her leisure time, knows what she is talking about. After all, she maintains daily international contacts on behalf of the business community and ensures that the interests of Austrian exporters are safeguarded in discussions at international level. Thanks to numerous insurance and cooperation agreements, the OeKB is an internationally much sought-after one-stop shop for risk hedging and financing. Doritsch-Isepp and her team provide the relevant analyses to assess country risks. Christine Dangl and her colleagues transform highly complex multilateral debt solutions into clearly structured agreements. Privately she likes gardening. Just like in her job, she demonstrates great sensitivity as well as a down-to-earth and practice-oriented approach: The right mix of patience, respect and consistent action is decisive also in the garden. The OeKB is happy to take advantage of these qualities when new tasks have to be tackled. In the recent past, Dangl s team has developed in-depth knowhow in the field of micro-credits and has successfully realised the first two projects in Burkina Faso and in Senegal. 7

10 OeKB The complete perspective 2007 E XPORT S ERVICES The people behind the OeKB Export Service. Credit Department Project and Environmental Analyses Dieter Nell Werner Schmied The head of the OeKB financing business admits quite openly that last year the situation was not that easy. But Dieter Nell is also convinced: Especially in times of financial crises the quality of long-term customer relations proves its worth because then you will have the partners you need for good cooperation. Commercial banks, customers and the OeKB know: We are all in the same boat. The family man Nell and his team jointly with the house banks intensify their efforts when market conditions are unfavourable to offer exporters and foreign investors attractive financing solutions. This is their contribution to support the economy. There is nothing better than to have a good overview. Werner Schmied, a passionate mountaineer, knows all about climbing to the top, both privately and professionally: But the ascent might be quite steep. His team of business administrators, engineers and environmental specialists prepares profound risk analyses and bases its assessments on economic, technical and ecological criteria. The experienced Alpinist believes it is legitimate that export credit agencies are required to apply increasingly strict standards to environmental issues: It is important that all measures are harmonised at international level. For this will benefit both the economy and the environment. 8

11 OeKB The complete perspective 2007 Guarantees for Export Acceptance Credits International Finance Ernst Mertl Waltraut Burghardt Austria s economy focused its investment activities on the neighbouring countries in Eastern and Central Europe at the right moment. Ernst Mertl, a passionate yachtsman, has been and is supporting navigation: We advise companies on how to structure their export activities successfully. His team keeps an eye on all risks: We do not only examine them thoroughly from the perspective of banking formalities but also consider soft facts and sustainability issues. Since the establishment of the export financing scheme, the procurement of capital in national and international financial markets has been based on conditions for first-rate debtors. The investors appreciate the outstanding credit quality reaffirmed by the guarantee of the Republic of Austria. Mertl thinks that the outlook for further internationalisation is bright: As long as the mix between entrepreneurial spirit and risk awareness is right, the motto is let s set sail!. 9

12 OeKB The complete perspective 2007 E XPORT S ERVICES The people behind the OeKB Export Service. EG-Project Underwriting Regina Aigner-Wöber Ilona Berghuber Karin D Alonzo Nadja Gutmann Andrea Hagmann Mario Rainer Haidinger Andrea Haunschmid Iris Kafka Hanne Knöbel Hildegard Kraus Monika Kremlicka Erwin Marchhart Andreas Ondrejkovic Johannes Pflügl Cornelia Pöstinger-Gaspari Brigitte Puhl- Teufelhart Karin Roitner Ferdinand Schipfer Manfred Schmid Margarete Schönhofer Regina Schrödl Dunja Strommer Ortrun Suppanz Susanne Travnicek Carina Tschank Karin Wiesinger Susanna Winter Andrea Wittmann Monika Zugrav EG-International Relations and Services Ines Baumann Regina Bolena Gertraud Bühringer Sylvia Doritsch-Isepp Gerold Eibensteiner Daniela El-Saadany Helmut Gantner Leopoldine Graf Elisabeth Holejsovsky Josef Illes Gerhard Kinzelberger Cäcilia Knopper Angelika Leeb Susanne Musil Sabine Neugebauer Peter Oblasser Franziska Pollak Heidemarie Ptacnik Alexander Pucher Ernst Rechberger Günther Römer Barbara Sburny Petra Schrei Anton Steffko Bianca-Melanie Strobl Charlotte Thell EG-Claims Management Maria-Christine Dangl Robert Farcher Peter Gaspari Andrea Hallemann Elisabeth Halys Adelheid Heim-Strobl Andrea Herbsthofer Christa Kaleta Karin Kargl-Köberl Nicole Kosi 10

13 OeKB The complete perspective 2007 Sylvia Kruder Eva Kutnyj Martina Schmutterer Doris Smolik-Rimser Beatrix Wichtel Sigrid Widhalm Norbert Wokusch Credit Department Margarete Biedermann Ilse Czermak Daniela Einböck Marion Grünsteidl Markus Hüttenberger Harald Klee Diana Landauer Hans-Rainer Miehl Dieter Nell Brigitte Pickl-Kolaczia Monika Prorok-Poremba Leopold Spielauer Silvia Stifter Roman Stöllinger Rudolf Talir Verena Valduga Project and Environmental Analyses Sabine Ertl Alexandra Griebl Christian Hanzlik Angela Konrad Kathrin Renate Ladenhaufen Karl Lenauer Heidrun Schmid Werner Schmied Leopoldine Türk Michael Wancata Guarantees for Export Acceptance Credits Elisabeth Burg Gabriele Dietrich-Oppolzer Barbara Fertsak Franz Lipper Ernst Mertl Wolfgang Pitsch Nicol Pschera Bettina Raninger Anneliese Reiser-Hartberger Erna Scheriau Markus Schmöllerl Elisabeth Strassmair Evelyn Ulrich-Hell Michael Unterlerchner Petra Waltl Ulrike Zabini Ingrid Zeiner International Finance Markus Bernklau Waltraut Burghardt Anton Ebner Annemarie Egger Anish Gupta Bettina Hanke Gabriele Kalcher Achim Keuchel Gabriele Kottas-Heldenberg Evelin Kranz Maximilian Plattner Engelbert Reiterer Ursula Riegler Elisabeth Schneider Ulrike Schweiger Monika Seitelberger Johannes Skarohlid Adelheid Sperk Stefan Strehle Status: January 31,

14 OeKB The complete perspective 2007 E XPORT S ERVICES Export countries in which projects were realised with the support of OeKB services. In the following markets customers of the OeKB Export Service were active as suppliers or foreign investors in China Taiwan Ukraina Turkey Australia Egypt Belarus Bulgaria Hong Kong Republic of South Korea Algeria Belgium Cayman India Islands Croatia Argentina Bolivia Indonesia Chile Cuba Armenia Bosnia and Iran Herzegovina China Kuwait Aserbaidschan Israel Brazil Germany Libya Australia Italy British Finland Malaysia Bahrain Virgin Islands Kazakhstan Georgia Maldives Bangladesh Colombia Source of photos: Foreign Trade Department of the Economic Chamber Austria (AWO) For queries on the photos contact: [email protected] 12

15 OeKB The complete perspective 2007 Egypt VAE Mexico Malaysia Belarus Malta Qatar Slovak Taiwan Hungary Republic Mexico Romania Thailand USA Slowenia The Netherlands Russia Czech Uzbekistan Spain Republic Nigeria Saudi Arabia Venezuela Sri Lanka Turkey Pakistan Switzerland United Arab Sudan Tunisia Emirates (VAE) Peru Serbia Republic of UK Vietnam Philippines Singapore South Africa Ukraina Cyprus Poland Syria The OeKB thanks the Economic Chamber Austria AWO for the photos from all over the world. 13

16 OeKB The complete perspective 2007 E XPORT S ERVICES Some projects realised with OeKB services. These are some examples of customers of the OeKB Export Service (and their goods) benefiting from the OeKB s reliable services. In many cases, they were refinanced by their house banks via the OeKB. Aichelin Ges.m.b.H. pusher-type furnace system Aktivsauerstoff GmbH detergent component Alois Pöttinger, Maschinenfabrik Gesellschaft m.b.h. cultivators, farming equipment Alpha Projektbetreuungs- und Logistik GmbH equipment for the production of mineral water and soft drinks AME International GmbH medico-technical equipment Andritz AG equipment for the refiner and paper machine, filter systems, hot strip annealing and pikkling line, hydrochloric acid regeneration plant, paper machine, galvanizing line components, deinking line, galvanizing pans, push-pull pickling line, waste paper pulping system, acid regeneration plant, parts of a woodpulp plant, Francis turbine, components of a tissue machine and a waste paper treatment plant, spare parts for a pulp station, irrigation pump, sheet drying line Angerlehner Hoch- und Tiefbau Gesellschaft m.b.h. reconstruction of the water and waste water network Aqua Engineering GmbH training machines and laboratory equipment ASMAG Anlagenplanung und Sondermaschinenbau Gesellschaft m.b.h. run-out system for brass bars ASTA Elektrodraht GmbH & Co insulated winding wires AVL List GmbH test beds and equipment for motor vehicles and engines Bank Austria Creditanstalt Leasing GmbH machines for the production of PVC and aluminum window frames Battenfeld Kunststoffmaschinen Gesellschaft m.b.h. injection moulding machines, robots, incl. automation BEKUM Maschinenfabrik Gesellschaft m.b.h. single station blow moulder, tank blow moulder Bernard Ingenieure ZT-Gesellschaft m.b.h. planning services Bertsch Nahrungsmitteltechnik GmbH & Co cheese production plant Bertsch-Laska Produktions- und Handels-GmbH raw meat production plants Bilgeri ENVI- RONTEC GmbH biogas plant BISO Schrattenecker GmbH tractors and components BM-Battery Machines GmbH machines for the production of batteries Böhler International GmbH forged pieces, stainless steel, welding electrodes, steel bars CEMTEC Cement and Mining Technology GmbH mills for processing iron ore, rotary dryer/ore dryer for a pelleting plant, grinding plant for the production of cement and slag powder CHEMSON Polymer-Additive AG PVC additives and PVC stabilizers Cincinnati Extrusion GmbH extrusion lines Constantia Patz Ges.m.b.H. aluminum sheet de Wit AgrohandelgmbH total rehabilitation and renewal of a pig farm Doppelmayr Seilbahnen GmbH 4-person chairlifts Doubrava Gesellschaft m.b.h. & Co. KG. cement silo station (comprises 4 silos and installations) Dunst GmbH planetary strander, tubular stranding machine Durisol- Werke Gesellschaft m.b.h. Nachf. Kommanditgesellschaft equipment and machines for a building material plant Durst Phototechnik Digital Technology GmbH large format inkjet printer Ebner-Industrieofenbau Gesellschaft m.b.h. gas-fuelled bell annealers Elin EBG Motoren GmbH generator EMCO MAIER GESELL- SCHAFT M.B.H. CNC machines including accessories, tools and systems ENGEL AUSTRIA GmbH production complexes for thin wall packaging, injection moulding machine, rubber injection moulding machine, robots EREMA Engineering Recycling Maschinen und Anlagen Gesellschaft m.b.h. recycling plant, extrusion system EVG Entwicklungs- u. Verwertungs-Gesellschaft m.b.h. girder welding machine, grid welding machine, cold rolling line EVN Projektgesellschaft Müllverbrennungsanlage Nr. 3 MbH reconstruction of waste incineration plant Filzmoser Maschinenbau Gesellschaft m.b.h. cutting machine for steel bars, bending device for steel bars, lattice girder welding machine centrifugal pumps, oil production pumps Flowserve (Austria) GmbH Food.com HandelsgmbH food portioning machines and plants Franz Haas Waffel- und Keksanlagen-Industrie GmbH line for the production of layered cake, production plant for filled wafer rolls, biscuits production plant, wafer baking machines, plant for shaped biscuits FREQUENTIS AG communications and news system control tower Gebauer & Griller Metallwerk GmbH electrode core rods Gerot Pharmazeutika Gesellschaft m.b.h. pharmaceuticals GLASTECH Produktions- und Verfahrenstechnik GmbH glass cutting plant, insulation glass production line, glass shaping plant GLOBAL-COM HandelsgmbH. machine for coating car engine valves Gold.Eck-Steppwaren A. Mayer GmbH. military sleeping bags Grabner Instruments Meßtechnik Gesellschaft m.b.h. minivap online systems Grazer Armaturen-Werk Pildner-Steinburg GmbH coating paint recycling plant Greiner Extrusion GmbH plant for the production of foam door panels, extruders, extrusion tools, temperature equalization devices, laminating machines GRUBER & CO Group GmbH extrusion tools and machines, production of plastic profiles, tools and extruders Gugler Water Turbines GmbH engineering services and supply of runners for small hydroelectric power plants Hans Künz GmbH tankhouse cranes Hauser GmbH refrigeration equipment for large warehouses Hermes Schleifmittel Gesellschaft mit beschränkter Haftung & Co. KG. coated abrasives HMH Engineering-Consulting-Trading GmbH rumble recycling plant IAG Industrie Automatisierungsgesellschaft m.b.h. linear pressing center for disk brake lining ifw mould tec GmbH injection moulds for plastic pipe joints iku intelligente Fenstersysteme AG intelligent façade components including planning services IMS Agrartechnik Handels GmbH agricultural machinery, stable equipment Ing. Rauch-Fertigungstechnik-Gesellschaft m.b.h. magnesium dosing furnaces, magnesium transport containers, magnesium alloying system Ing. Sumetzberger GMBH. letter shoot installations for hospitals INOCON Technologie Gesellschaft m.b.h. high-performance welding system for car bodies INTECO special melting technologies GmbH electro-slag remelting plant, heat treatment plants, laboratory equipment Iveco Magirus Brandschutztechnik GmbH special fire fighting vehicles J. Zimmer Maschinenbau Gesellschaft m.b.h. flat screen printing machine Kapsch TrafficCom AG toll systems KIM Maschinenvertriebs GmbH bottle cleaning machine Knapp Logistik Automation GmbH auto- 14

17 OeKB The complete perspective 2007 matic commissioning system Koerner Chemieanlagenbau Gesellschaft m.b.h. pickling tank for a zinc coating plant Kunststofftechnik Waidhofen an der Thaya Gesellschaft m.b.h. injection moulds Kurtz GmbH plant for the production of styrofoam boards and components Leoni NBG Fiber Optics GmbH special steel tubes LIEBHERR-HAUSGERÄTE LIENZ GMBH ice cream freezer chests LIEBHERR-WERK NENZING GMBH piling and drilling rigs, crawler cranes, mobile harbour crane, duty cycle crawler crane, offshore cranes for a super-heavy weight offshore construction vessel Linsinger-Maschinenbau Gesellschaft m.b.h. technical sawing center, strip edge milling machine Lisec Maschinenbau GmbH insulated glass production line M. Kaindl coated MDF flooring (particle boards) Mag- Maschinen und Apparatebau Aktiengesellschaft wire enameling plant Maplan Maschinen und technische Anlagen, Planungs- und Fertigungs Gesellschaft m.b.h. rubber injection moulding machine Maschinenfabrik Laska Gesellschaft m.b.h. supercutter, mixing machine Maschinenfabrik Liezen und Giesserei Ges.m.b.H. crushing and sifting plant Matimex GmbH equipment for sausage production MCE Building & Infrastructure Solution GmbH direct-current electric motor for driving a water pump MCE Industrietechnik Linz GmbH & Co planning, supply of equipment and training MCE Stahl- und Maschinenbau GmbH & Co engineering for road bridges as well as realization of the concrete paving MIBA Automation Systems Ges.m.b.H. broaching and measuring machines for processing plain bearing half liners, abutting surface broaching machine and excess measuring machine Mould & Matic Solutions GmbH stacking equipment for thermoforming machines Neuhold Gesellschaft m.b.h. computer and sand collector equipment Next Generation Recyclingmaschinen GmbH recycling machine Nokia Siemens Networks Österreich GmbH telecommunications equipment, GSM network equipment, equipment for fixed network telephony NUFARM GmbH & Co.KG plant protectives Odelga Handelsgesellschaft m.b.h. medico-technical equipment Österreichische DOKA Schalungstechnik Gesellschaft m.b.h. shuttering technology Plasser & Theurer, Export von Bahnbaumaschinen, Gesellschaft m.b.h. high-performance machines, leveling machines, elevating machines, flatteners, tamping machines, spare parts for railway construction machines, track laying machines Polytechnik Luft- und Feuerungstechnik GmbH biomass plant Power-Solutions Vertrieb und Handel GmbH block-type thermal power station, gas engine plant Bull GmbH energy drinks Red REICH-AUSTRIA Spezialmaschinen Gesellschaft m.b.h. wood working machines Reschreiter Gesellschaft m.b.h. medico-technical equipment RHI AG magnesite material, magnesite bricks, refractory material Röhren- und Pumpenwerk Bauer Gesellschaft m.b.h. irrigation systems and agricultural equipment ROSENBAUER INTERNATIONAL Aktiengesellschaft component sets for the production of fire fighting vehicles, pump water tenders Rosendahl Maschinen GmbH machines for cable production Rübig Gesellschaft m.b.h. & Co. KG. plasma nitriding unit, system for contour hardening for steel components SAIL LABS Technology AG multimedia analysis system Salvagnini Maschinenbau GmbH sheet metal working centre, bending machine SBM Schoeller-Bleckmann Medizintechnik Gesellschaft m.b.h. sterilization equipment Scheuch GmbH filter for cement mill, filter system for furnace dust extraction, filter system for mill Siemens AG Österreich Bereich Transportation Systems signaling technology and telecommunications, software licenses Siemens Aktiengesellschaft Österreich equipment for cement plants, replacement crusher, crusher for cement plant Siemens Elin Buildings and Infrastructure GmbH & Co planning and realisation of buildings management and electronic systems Siemens Transformers Aus-tria GmbH & Co KG shunt reactors, insulant, output transformers Siemens VAI Metals Technologies GmbH & Co continuous caster, slab continuous caster, dedusting, vertical continuous caster, filters and compensators, one-position ladle carriage, engineering, supply of 2,300-t converters, continuous pickling plant, pickling plant, acid regeneration as well as cold rolling stand SML Maschinengesellschaft mbh cast film line, multifilament spinning plant, spinning machine for the production of PP carpet yarn SSI Schäfer Peem GmbH highly dynamic commissioning system Starlinger & Co Gesellschaft m.b.h. machines for the production of woven plastic sacks, plastic weaving looms, tape extrusion system System Trade GmbH plant for the production of boiled sausages Technoplast Kunststofftechnik GmbH & Co KG extrusion lines and tools Theysohn Extrusionstechnik Gesellschaft m.b.h. sets for profile forming tools, extruders, screws and barrels UNIHA Wasser Technologie GmbH sea water desalination plant VA TECH HYDRO GmbH Pelton runners, turbine components for 3-piece bulb turbines, turbines, turbine control systems and spare parts, electromechanical equipment, hydraulic equipment, generators, transformers, switchboard plants, steel constructions, automation process control engineering, protection VA TECH WABAG GmbH equipment components for waste water treatment plant, equipment for sewage treatment plant, rehabilitation of the waste water treatment plant and the pumping station, project development and construction of drinking water treatment plant, desalination plant, heat exchanger pipes, erection of a testing system VAE GmbH turnout systems and components, rail movement joints, single crossover and spare parts Vamed Engineering GmbH & Co KG supply, installation, training and commissioning of medico-technical equipment, medico-technical devices, planning, erection and commissioning of a hospital voestalpine Schienen GmbH rails voestalpine Tubulars GmbH & Co KG seamless pipes Vogel & Noot Landmaschinen GmbH & Co KG ploughs and agricultural implements Voith Paper GmbH paper machine, components for a paper machine, modification of the coating unit, modification of the size press Voith Siemens Hydro Power Generation GmbH & Co.KG spare parts for pump station, generators and other equipment Voith Turbo GmbH & Co.KG final drive units Wilfried Heinzel Aktiengesellschaft pulp, bleached pulp, bleached softwood pulp in sheets, cardboard Worthington Cylinders GmbH steel cylinders, industrial steel cylinders 15

18 OeKB The complete perspective 2007 E XPORT S ERVICES The OeKB Export Service teams. Your contact to the OeKB Export Service team. Export Guarantees Project Underwriting Tel Fax [email protected] Credit Department Tel Fax [email protected] Export Guarantees International Relations and Services Tel Fax [email protected] Export Guarantees Claims Management Tel Fax [email protected] Project and Environmental Analyses Tel Fax [email protected] International Finance Tel Fax [email protected] Guarantees for Export Acceptance Credits Tel Fax [email protected] 16

19 OeKB The complete perspective 2007 Your contact to the OeKB Group companies. OeKB Versicherung AG Strauchgasse Vienna, Austria Tel Fax [email protected] PRISMA Kreditversicherungs-AG Himmelpfortgasse Vienna, Austria Tel Fax [email protected] Office for Linz Ziegeleistrasse Linz, Austria Tel Fax [email protected] OeKB Südosteuropa Holding Ges.m.b.H. Am Hof Vienna, Austria Tel Fax [email protected] Österreichischer Exportfonds GmbH Strauchgasse Vienna, Austria Tel Fax [email protected] VERSICHERUNG AG SÜDOSTEUROPA HOLDING GMBH 17

20 OeKB The complete perspective 2007 E XPORT S ERVICES

21 E XPORT S ERVICES Guarantees of the Republic of Austria under the Export Guarantees Act Export Financing Scheme operated by the OeKB Statistical Data Legal Basis

22 Definitions Guarantor Guarantees of the Republic of Austria EGA EGD Guarantee offer/refinancing offer Marketable risks Maximum amount Uninsured portion (self-participation) Percentage of cover Basic amount Cover requirement Financing requirement Utilisation of the liability limit Turnover of guarantees EFGA Soft loans CIS OECD The Federal Minister of Finance on behalf of the Republic of Austria. Guarantees and guarantees by aval on bills of exchange under the Export Guarantees Act and the 1981 Export Guarantees Decree, Federal Law Gazette no. 257/1981, as amended. Conditional commitment to grant a guarantee or refinancing facility for transactions under negotiation. Commercial and political risks (excluding catastrophe risks) arising from export transactions with risk terms covering production and payment periods of less than two years and involving a contracting party domiciled in an EU Member State or OECD country, with the exception of Mexico, South Korea and Turkey. The amount stated in the guarantee or guarantee by aval, limiting the liability of the guarantor. The percentage of a claim to be borne by the beneficiary of the guarantee. The percentage of a claim to be borne by the guarantor. Maximum amount corresponding to the percentage of cover. Balance (i.e. amount) of cover requirements reported quarterly by the holder of a guarantee (in respect of guarantees issued prior to July 1, 1996 and not adjusted to the General Business Conditions of 1996). Actual cover requirement that may be reported quarterly by the holder of a guarantee by aval on bills of exchange. Calculated on the basis of the basic amounts for guarantees G 1 to G 9 and G 11 as well as the financing requirements reported by the holders (beneficiaries) of the guarantees by aval; guarantee offers excluded. Newly issued guarantees and guarantees by aval on bills of exchange (contracts); the amounts stated are the maximum amounts Export Financing Guarantees Act, Federal Law Gazette no. 216/1981, as amended. Concessional financing, financing on soft terms and conditions. Loan financing on favoured terms and conditions by lower interest rates (below-market interest rates) and/or grace periods and/or extremely long repayment periods. Community of Independent States. Organisation for Economic Cooperation and Development. OECD/EU Classification according to the definitions of Statistik Austria. Non-European The new EU Member States Bulgaria and Romania are included as from January 1, developing countries/opec OPEC Organisation of the Petroleum Exporting Countries. Legend Amount is zero. 0 An amount representing less than half of the value shown in the heading of the following tables. Totals may not add due to rounding. 20

23 Contents (Authentic version published in German) I. General Section Page Development of export guarantees and export financing in Austria 22 II. Guarantees of the Republic of Austria under the Export Guarantees Act 1 The liability limit under the Export Guarantees Act and its utilisation; new guarantees issued 23 2 Guarantees by types of guarantee 24 3 Credit periods of transactions guaranteed 25 4 Guarantees by regions and countries 26 5 Debt rescheduling agreements 28 6 Statement of income and net claims paid Claims paid by regions and countries 29 III. Export Financing Scheme operated by Oesterreichische Kontrollbank AG 1 Outstanding amounts and net changes in the refinancing scheme 33 2 Turnover in the refinancing scheme 34 3 Export financing by regions and countries 35 4 Tied financial credits Acquisition of accounts receivable (Types of contract) 38 5 Development of interest rates of the export financing scheme 39 6 Sources and allocations of funds (Flow of funds statement) 40 7 Guarantees of the Republic of Austria under the 1981 Export Financing Guarantees Act 41 IV. Legal Basis 43 The Legal Basis and General Business Conditions regarding the guarantees of the Republic of Austria pursuant to the Export Guarantees Act are also available on the Internet at On this website you will also find the updated Guidelines for Cover for over 100 export markets, information on the premium system for export guarantees pursuant to the Export Guarantees Act as well as the current interest rates applicable to the OeKB s export financing scheme. Moreover, our homepage contains information on topical issues, international cooperation and the general framework. 21

24 I. General Section Development of export guarantees and export financing in Austria Austria owes its position among the ten richest countries of the world to a great extent to its strong exports and foreign investment, which are traditionally growing much more dynamically than the overall economy. Access to larger markets and cost-effective manufacturing also abroad are decisive factors, especially for a smaller national economy, which safeguard the modern and streamlined production of high-quality products. Exports enhance the research and development capacities of companies, thereby creating the basis for sustainable employment. At the same time, Austrian companies have to cope with fiercer foreign competition. The optimal design and perfect mix of export guarantee and financing instruments on the market have therefore developed into significant locational factors. In Austria economic policy has taken account of the significance of exports and Austrian direct investment abroad at a very early stage. An export guarantee and financing system has been established which in international comparison is highly efficient and powerful. Export guarantees and financing since 1950 Since 1950 the OeKB has administered the export credit and guarantee system as the agent of the Republic of Austria. This leads to valuable synergy effects for the export and banking industries. For the OeKB offers also adequate refinancing schemes for accounts receivable from exports and foreign investment. The OeKB regards it as a permanent challenge to apply and further develop the highly refined system adjusted to the foreign trade policy to ensure that Austrian companies as well as the establishments of foreign groups active in Austria experience the country as an attractive location for exigent foreign trade activities. The OeKB considers it a special mandate to use the resources of the Federal Republic of Austria responsibly and by paying due regard to tax savings, while making this transparent to the public. Last but not least, this is achieved by entering into a dialogue with critical groups, such as NGOs. International regulatory framework Guarantees and credits pursuant to the OeKB s export financing scheme are issued in conformity with the guidelines and rules contained in the international agreements entered into with the OECD, the EU and the Berne Union. The provisions of the OECD Consensus (Arrangement on Officially Supported Export Credits) are applied to taking out export credit insurances on behalf and for the account of the Republic and to extending credits in the framework of the export financing scheme, provided that these transactions fall under its scope. Project, environmental and country analyses A comprehensive risk assessment that includes project and country analyses is a crucial factor for an efficient and realistic evaluation of applications for export guarantees by bankers. Increasing importance is attached to taking into account sustainable development, notably environmental and social aspects. This has also manifested itself in enhanced transparency and legislation on free public access to environment-related information. Export Services Annual Report 2007 The following sections offer statistical surveys of the Bank s export services. Procedural details can be found in this Annual Report, Part IV (Legal Basis). The OeKB s website provides up-to-date and detailed information as well as contact addresses. The development in the year under review is presented in the Annual Report in Chapters 2 and 3 of the Group Report of the Board of Executive Directors for the Year

25 II. Guarantees of the Republic of Austria under the Export Guarantees Act 1 The liability limit under the Export Guarantees Act and its utilisation; new guarantees issued Export guarantees and guarantees for Austrian foreign investment Liabilities pursuant to the Export Guarantees Act are assumed as guarantees for the due performance of contracts by the foreign contracting parties, or as guarantees by aval on bills of exchange which are applied to financing export transactions or foreign investment. Examining applications for guarantees pursuant to the Export Guarantees Act in the light of formal banking requirements, issuing and handling the administrative and technical aspects of guarantees on behalf of the Republic of Austria, protecting the rights of the Republic of Austria stipulated in the guarantee contracts. The guarantee scheme currently in force is based on the Export Guarantees Act as well as the respective Decree of the Federal Minister of Finance. The contractual relations between the guarantor and the guarantee holders are set forth in the General Business Conditions for guarantees of the Republic of Austria under the Export Guarantees Act as well as in the individual guarantees. Since 1950 the OeKB has been assigned various tasks as the agent of the Republic of Austria (represented by the Federal Ministry of Finance): In this field the OeKB acts on behalf and for the account of the Republic of Austria. Amendment to the Export Guarantees Act Under the Amendment to the Export Guarantees Act (Federal Law Gazette I no. 58/2007, issued on July 31, 2007), the period of validity of the Export Guarantees Act was extended until December 31, At the same time, the liability limit was increased from EUR 35 billion to EUR 45 billion. December 31, 2004 December 31, 2005 December 31, 2006 December 31, Development of the liability limit under the Export Guarantees Act and its utilisation Liability limit Utilisation (guarantees outstanding) EUR mill. % 35, , EUR mill. % 35, , EUR mill. % 35, , EUR mill. % 45, , Compared with the previous year + 1, , , Reserve for the future 3, , , , Federal Law Gazettes I no. 63/2000, 71/2003 and 95/ Federal Law Gazette I no. 58/ Total turnover of guarantees New guarantees issued (contracts) 1 in EUR million 5,191 5,505 8,714 12, ,207 Compared with the previous year: in EUR million in per cent , , Including guarantee offers transformed into guarantee contracts; excluding newly issued guarantee offers. 23

26 Guarantees of the Republic of Austria under the Export Guarantees Act 2 Guarantees by types of guarantee The export guarantee scheme comprises 12 types of guarantee. For certain types of guarantee, guarantee offers may be issued, i.e. the promise to grant a guarantee. These guarantee offers are not counted against the authorised liability limit. Guarantee offers are to facilitate the contract negotiations of exporters or of financing banks. For further details see Part IV of this Annual Report (Legal Basis). Types of guarantee Contracts issued 2006 Outstanding Dec. 31, 2006 Contracts issued 2007 Outstanding Dec. 31, 2007 Guarantees issued and outstanding by types of guarantee 1 G 1 number EUR mill. % 453 1, number EUR mill. % 632 1, number EUR mill. % number EUR mill. % 685 1, G G , , G , , , , G G 6 G G , , G G11 G G 1 G 9, G , ,791 15, , ,823 17, Guarantees by aval (GA) 455 5, ,057 16, , ,171 20, Total 1,106 8, ,848 32, ,225 12, ,994 37, Specific authorisations within comprehensive policies G Guarantee offers 233 1, , ,132 1 These figures include guarantees for debt rescheduling agreements (see chapter II/5). G G G G G G G 1 Guarantee for direct deliveries and services with special types of guarantee 2 Guarantee for indirect deliveries and services 3 Guarantee for tied financial credits, credit transactions/bond issues and debt rescheduling agreements 4 Investment guarantee 5 Turnover guarantee (one foreign customer) 6 Country turnover guarantee or comprehensive guarantee (all foreign customers in one, several or all coverable countries) 7 Guarantee for stock in commission, machinery deployment guarantee, advance guarantee G 8 Reinsurance of contract of an export credit- or export credit insurance institution (reinsurance guarantee) G 9 Guarantee for the acquisition of accounts receivable from export transactions by domestic or foreign credit institutions G 10 Exchange risk guarantee (the issuance of exchange risk guarantees G 10 has been suspended since 1986) G 11 Market developing guarantee GA Guarantee by aval on bills of exchange P Promise to grant a guarantee (guarantee offer; not counted against the authorised liability limit). 24

27 Guarantees of the Republic of Austria under the Export Guarantees Act Revolving guarantees Revolving guarantees these are mostly reinsurance guarantees G 8 are included in the turnover volume of guarantees only in the year in which they were issued. Guarantees by aval Guarantees by aval on bills of exchange are another type of cover provided in the Export Guarantees Act. These are guarantees for the issuer of promissory notes (since the Amendment 1993 of the Export Guarantees Act) or for the acceptor of bills of exchange drawn by banks or exporters for the purpose of financing export transactions. In some cases additional guarantees are outstanding simultaneously to cover the export risks. Beneficiaries of guarantees by aval are exporters. Applications for aval must be filed via the exporter s bank which also arranges the financing. In addition, these guarantees facilitate the financing of investments abroad. 3 Credit periods of transactions guaranteed As far as newly issued guarantees are concerned, the major part of the transactions guaranteed both in terms of number and amount falls within a five-year payment period. In contrast, the volume of guarantees outstanding under the Export Guarantees Act is dominated by longterm contracts as these guarantees include guarantees for exports to less developed countries, investment guarantees as well as guarantees for debt rescheduling agreements. The longest effective guarantee covers a credit period up to the year Credit period in years Specific policies Revolving policies Credit periods of transactions guaranteed Specific policies Revolving policies up to 1 over 1 to 5 over 5 to 10 over 10 Total up to 1 over 1 to 5 over 5 to 10 over 10 Total number EUR mill. number EUR mill. Contracts issued , , , , Guarantees outstanding December 31, ,525 1,105 5,108 1,049 6, , , ,614 2,727 25,603 1,121 6,505 number EUR mill. number EUR mill. Contracts issued , , , , Guarantees outstanding December 31, ,447 1,017 4,950 1,170 11, , , ,035 2,961 31,088 1,033 6,372 25

28 Guarantees of the Republic of Austria under the Export Guarantees Act 4 Guarantees by regions and countries The following tables grouped by regions and countries show the turnover of newly issued guarantees (contracts) and the corresponding guarantees outstanding under the Export Guarantees Act. In this context, it should be noted that individual large projects may cause shifts in the relative shares by regions. Regions, country groups Contracts issued 2006 Outstanding Dec. 31, 2006 Contracts issued 2007 Outstanding Dec. 31, Guarantees issued and outstanding by regions 1 number EUR mill. % number EUR mill. % number EUR mill. % number EUR mill. % Europe (incl. Turkey/CIS) 258 1, , , , EU , , North America Latin America Asia 289 1, , , Australia, Oceania Africa Comprehensive policies (CP) 2 G Guarantees , , ,791 15, , , ,823 17, Guarantees by aval (GA) 455 5, ,057 16, , ,171 20, Total 1,106 8, ,848 32, ,225 12, ,994 37, of which (without CP/GA): OECD Non-European developing countries OPEC , , , , , , ,033 6, , These figures include guarantees for debt rescheduling agreements (see chapter II/5). Excluding outstanding receivables due to the guarantor (Republic of Austria) from claims paid under guarantees (see tables in chapter II/6). 2 In this table the G 6 and G 8 revolving guarantees, which cannot be attributed directly to specific regions, are subsumed under comprehensive policies. Country data The OeKB has been registering a growing interest in country data. With a view to enhancing transparency and in agreement with the Federal Ministry of Finance, this Annual Report contains country data relating to guarantees of the Republic of Austria pursuant to the Export Guarantees Act and to the OeKB s export financing scheme. For the sake of conciseness, only countries with outstanding guarantees in excess of EUR 25 million have been included in this presentation. 26

29 Guarantees of the Republic of Austria under the Export Guarantees Act Regions and countries Guarantees issued (contracts) 2007 Guarantees outstanding Dec. 31, Guarantees issued and outstanding by regions and countries 1 in 1,000 EUR Total of which of which Total rescheduling guar. rescheduling guar. Total 12,315,613 19,005 37,459,534 1,916,190 Europe 4,569,280 9,449, ,963 Bulgaria 5, ,003 Germany 30,478 28,727 Estonia 33,485 Malta 100, ,000 Poland 1, , ,151 Romania 7, ,431 Czech Republic 1,113 37,525 Hungary 66,518 74,160 Cyprus 71,017 Turkey 320,475 1,359,785 Belarus 166, ,426 Bosnia and Herzegovina 20, ,492 89,839 Kazakhstan 890, ,097 Croatia 174, ,911 13,938 Russia 1,156,998 2,538,266 Serbia 70, ,772 51,422 Ukraina 1,533,079 2,010,991 Latin America 70, ,575 44,792 Brazil 36, ,143 British Virgin Islands 4,695 36,776 Cuba 39,061 39,061 Mexico 16,648 27,778 Venezuela 1,417 44,789 Asia 973,042 19,005 5,271, ,843 Bhutan 31,245 China (incl. Hong Kong) 498,034 1,554,721 India 82, ,814 Indonesia 1,927 1,173, ,921 Iraq 17,233 17, , ,690 Iran 175, ,419 Israel 1,140 54,155 Jordan 1,772 1,772 57,075 56,565 Pakistan 4,364 78,480 31,077 Philippines 2, ,927 Saudi Arabia 1, ,434 Singapore 25,267 59,397 Sri Lanka 32,624 77,284 South Korea (Republic) 34,124 92,741 Taiwan ,910 Thailand 3, ,831 United Arab Emirates 17,133 30,094 Vietnam 44, ,341 14,590 Africa 69, , ,592 Egypt 6, , ,253 Algeria 42, ,397 Côte d Ivoire 69,579 69,579 Gabon 28,869 Ghana 42,043 1 Country data without comprehensive guarantees and guarantees by aval on bills of exchange. Guarantees issued (contracts) and guarantees outstanding in each case excluding guarantee offers. Excl. outstanding receivables due to the guarantor (Republic of Austria) from claims paid under guarantees (see tables in chapter II/6). 27

30 Guarantees of the Republic of Austria under the Export Guarantees Act 5 Debt rescheduling agreements Paris Club When need arises in concrete cases, the Paris Club is formed from a group of public creditors, which includes 19 countries participating on a regular basis. Representatives of the international financing institutions (notably the International Monetary Fund and the World Bank) also attend the meetings chaired by France. Austria is represented by the Federal Ministry of Finance and the OeKB. Debt rescheduling agreements are agreements covering the external debt of a debtor country which are due to deliveries and services insured by the creditor countries in the framework of their respective export guarantee systems or which fall within the area of governmental development aid. As a first step, multilateral framework conditions are agreed on between the debtor country and the creditor countries, which are finally implemented with the individual creditor countries on a bilateral basis. Austria usually reschedules guaranteed claims at bilateral level through refinancing under debt-restructuring agreements. The due performance of these agreements is also guaranteed pursuant to the Export Guarantees Act. Conventional debt rescheduling The aim of debt rescheduling is to restore the creditworthiness of the debtor nation on a long-term basis. The new creditworthiness is to be achieved by all creditor countries sharing alike in the debt rescheduling. In the framework of debt rescheduling, usually the deadlines for repayment are extended and market interest rates are applied (conventional rescheduling). Debt relief concessional debt rescheduling agreements Since 1988 debt relief programmes consisting in concessional debt rescheduling have been agreed on successively for the poorest debtor countries. The percentages of debt reduction were progressively increased from originally 33% to 50%, 67% and 80%. The so-called enhanced HIPC (Heavily Indebted Poor Countries) Initiative providing for debt reductions by 90% or more for heavily indebted poor countries was adopted in June In the framework of a concerted EU-wide initiative, Austria grants a 100% debt relief to these countries. In Austria debt reductions were initially implemented either by applying interest rates below the actual market interest rates or as for example under the enhanced HIPC Initiative by direct debt relief. Moreover, the international creditor community granted exceptional debt relief to Poland (as from 1991) and Egypt (as from 1992). In both cases this leads to a reduction of the total debt by half its cash value; Austria participates in this process by lowering the interest rate. The creditor community has also promised special agreements, under which considerable amounts of debt will be cancelled, to former Serbia & Montenegro (2001), Iraq (2004) and Nigeria (2005). By December 31, 2007 cumulative payments of principal in the amount of EUR 7,259 million and of interest in the amount of EUR 3,183 million were received under reschedulings. As of December 31, 2007 the OeKB (on behalf of the Republic of Austria) administered receivables due from paid claims on account of non-performance of rescheduling agreements by debtor countries in the aggregate amount of EUR 547 million (EUR 433 million corresponding to overdue principal and EUR 114 million to overdue interest). The development of the claims in connection with debt rescheduling guarantees is shown in table 6.2 in the next chapter. 28

31 Guarantees of the Republic of Austria under the Export Guarantees Act Regions, types of guarantee Contracts issued 2006 Outstanding Dec. 31, 2006 Contracts issued 2007 Outstanding Dec. 31, 2007 Rescheduling guarantees by regions and by types of guarantee 1 number EUR mill. % of countries EUR mill. % EUR mill. % number of countries EUR mill. % Europe (incl. Turkey/CIS) Latin America Asia Africa , Total , , of which OECD 1 1, Non-European developing countries OPEC , , G 3 G , , These figures are contained in the figures appearing in the preceding tables. 6 Statement of income and net claims paid Claims paid by regions and countries The below survey shows the development of the premium income and of claims paid under guarantees of the Republic of Austria according to the Export Guarantees Act in 2007 and cumulative values since The determination of the premium amounts is not based on profit considerations but on the cost coverage of the procedure over the long term. The expenditure for interest rate reductions granted in connection with concessional reschedulings on the basis of international agreements will considerably influence the entire Statement of income and net claims paid. Claims paid which are included in debt rescheduling agreements or in accounts receivable acquired in anticipation of (forthcoming) rescheduling agreements are deducted from the total amount of claims paid. The amounts shown in the following tables are already adjusted/reduced by transfers 2007: EUR 17 million; total from 1978 to 2007: EUR 5,600 million. 29

32 Guarantees of the Republic of Austria under the Export Guarantees Act in EUR million Statement of income and net claims paid under guarantees of the Republic of Austria pursuant to the Export Guarantees Act Premium income ± Interest/costs Total Recoveries Total (+) Claims paid, excl. HIPC () 1 Net amount (±) 2 Net interest rate relief granted () Net amount incl. interest rate relief granted (±) 2 In per cent of cumulative guarantees issued In per cent of guarantees outstanding 172 3, , , , , , , , , , , , , , , , , , , , , , , Receivables due from paid claims (excl. HIPC) as of December 31 (the collection procedures are expected to lead to further recoveries) 1,362 1,362 1,306 1, Claims paid incl. net interest rate relief granted minus recoveries in per cent of premium income ± interest/costs Interest rate relief granted () Contribution from federal budget (+) Net interest rate relief granted () 3 Final losses written off, excl. HIPC () Total () In per cent of cumulative guarantees issued 83 2, , , , , , , , , , , , Guarantees issued (contracts) 5, ,177 8, ,891 Guarantees outstanding as of December 31 30,939 30,939 32,108 32,108 1 Restructurings of claims paid under the HIPC Initiative in previous reporting periods influence the sum of the figures. 2 Statistical surplus (+); statistical deficit (). 3 Regarding interest rate relief granted as debt relief and HIPC (Heavily Indebted Poor Countries) Initiative under international agreements see chapter 5/Debt rescheduling agreements. 12, ,207 37,460 37,460 The claims paid by the Republic of Austria under guarantees as provided in the Export Guarantees Act must be seen in conjunction with the aggregate volume of guarantees issued (the guarantee turnover). Since the procedure was established in 1950, the aggregate guarantee turnover up to 2007 has reached EUR billion. This cumulative total comprises only the nominal amounts of the revolving guarantees. During these 58 years, writeoffs by the guarantor and interest relief that had to be granted (since 1989) under international agreements as debt relief reached a total of EUR 4,515 million (corresponding to 2.7% of the aggregate guarantee turnover). Since 1950 an aggregate statistical deficit of EUR 159 million (including net interest rate relief granted) has had to be financed out of budget funds (corresponding to 0.1% of the aggregate guarantee turnover). Set against this must be receivables due to the guarantor under claims paid; the respective collection procedures are expected to lead to further recoveries. 30

33 Guarantees of the Republic of Austria under the Export Guarantees Act in EUR million 2007 cum cum cum. Dec. 31, 2007 Dec. 31, Claims paid pursuant to the Export Guarantees Act by regions Regions and country groups Claims paid Recoveries Written off as final losses Claims paid by the Republic of Austria and outstanding Claims admitted, but not yet paid out Europe (incl. Turkey/CIS) EU North America Latin America Asia Australia, Oceania Africa Comprehensive policies G G 1 G 9 commercial risks political risks 1 Exchange risk guarantees G G 1 G 10 Guarantees by aval Total 257 2, , , , , , , , , , , , , , , , , , , of which 2 OECD 253 1, Non-European developing countries OPEC HIPC Initiative, total 60 4, , , , , Compared with G , , ,675 1,307 Compared with G , , ,124 1,399 Compared with G , , ,919 1,470 of which for debt rescheduling guarantees Europe 218 1, Latin America Asia Africa 26 1, , Total 258 3, , , Compared with G , , , Compared with G , , Compared with G , , Including claims paid under guarantees for debt rescheduling agreements. 2 Without taking into account the claims paid for exchange risk guarantees and guarantees by aval, which are not directly attributable to specific regions/country groups. Claims paid for comprehensive policies were attributed to the OECD. 3 This amount includes EUR million of claims paid in previous periods transferred to the HIPC Initiative in

34 Guarantees of the Republic of Austria under the Export Guarantees Act in 1,000 EUR 2007 cum cum cum. Dec. 31, 2007 Dec. 31, Claims paid pursuant to the Export Guarantees Act by regions and countries 1 Total 327,526 6,771, ,027 2,650, ,601 3,276, ,581 33,086 Europe 257,663 2,057,254 43,603 1,007,805 87, , , Bulgaria 112, ,230 38,519 Germany 35, ,299 12,888 35,901 97, France 36,534 6,384 29,053 1,097 United Kingdom 27, , ,708 3,020 Italy 21 97, , ,958 4,764 Poland 216, ,001 1, ,809 4, , , Switzerland 25,834 5,624 20,205 5 Turkey 25 54, , ,861 7,459 Georgia ,170 36,000 49,337 41,430 44,833 Russia, of which , ,118 2, , former Soviet Union 415, , ,124 Serbia 3, ,036 4,102 85, ,713 3,200 Ukraina 28,681 1,241 26, ,113 North America 11 40,074 7, , USA 27,555 5,717 21, Latin America 11, ,272 1, , , ,395 17,586 Argentina 6, , , ,943 33,154 Bolivia 68,583 4,708 63, Brazil 37, , , Cuba , , ,921 Venezuela 3,568 41,043 14,535 2,984 23,524 17,189 Asia 13,798 1,859,585 24, , , , ,916 14,445 China (incl. Hong Kong) 1,668 95,044 1,773 12,616 40,050 41,974 40,454 7,264 India 4,073 39, , ,442 15,778 7,177 Indonesia 2, ,854 15,256 57,200 17,742 53,568 16,086 Iraq 3, ,689 79, , ,827 10,495 Iran 155,426 85,091 70,335 Lebanon 74,935 3,898 46, ,207 Myanmar 52,298 17,434 34,864 North Korea (DPR) 231,795 80,579 6, ,589 Philippines 78,220 74,394 3,826 Saudi Arabia 3 59, , ,299 Syria 25,533 18,745 6, Thailand 42, , United Arab Emirates ,017 1,606 83, , Africa 34,449 2,067, , , ,564 1,172, ,931 Egypt 27, ,877 25, ,630 1,759 34, Algeria 90,258 88,061 2,197 Angola 51,319 38,937 47,481 1,662 2,176 Côte d Ivoire 2,651 25,366 5, ,887 16,120 Cameroon 472,446 13, ,520 Kenya 1,004 66,748 1,972 61,931 1,537 3,280 Congo DR (former Zaire) 82,556 15,982 1,061 65,513 Madagascar 60,951 9,345 51,606 Morocco 120, ,105 3,454 Nigeria 11, ,099 42, , ,943 4 Zambia 29,530 13,235 16,295 Sudan 296,336 7, , ,445 Tanzania 59 40, ,228 35, Togo ,790 14, ,526 17,285 1 These figures include claims paid for debt rescheduling guarantees. Individual countries are shown if the cumulative claims paid are in excess of EUR 25 million (country data without taking into account the claims paid for comprehensive policies, exchange risk guarantees and guarantees by aval, which are not directly attributable to specific countries). 2 This amount includes EUR million for the debt-rescheduling of Poland; Poland services its debts punctually, but which were deducted from refinancing. 32 Regions and countries Claims paid Recoveries Written off as final losses Claims paid by the Republic of Austria and outstanding Claims admitted, but not yet paid out

35 III. Export Financing Scheme operated by Oesterreichische Kontrollbank AG 1 Outstanding amounts and net changes in the refinancing scheme Export financing scheme since 1960 Since 1960 the OeKB has operated a scheme for financing exports of goods and services primarily on a medium and long-term basis, giving special consideration to exports of Austrian capital goods. This export financing scheme is intended to provide refinancing facilities to banks which in turn extend credits to Austrian exporters for the sale, or to foreign buyers (or their bank) for the purchase, of Austrian goods and services or for equity investments in foreign countries by Austrian enterprises, as well as for export acceptance credits. The scheme is also used to cover direct credits extended by the OeKB for the same purpose. The 1995 Amendment to the Export Guarantees Act provides for the possibility of assuming guarantees for non-tied credits. Requirements These refinancing credits require a guarantee in conformity with the 1981 Export Financing Guarantees Act for the contract or right underlying the financing transaction. Furthermore, the rights arising both from the relevant guarantee as well as from the underlying (export) contract usually have to be assigned as collateral security. Based on the provisions of the Consensus, the maximum repayment terms for export credits are in general 10 years. Maximum repayment terms of more than 10 years are possible for conventional power plants (maximum 12 years), project financing (maximum 14 years) as well as renewable energies and water projects (maximum 15 years). The export financing scheme operated by the OeKB, providing refinancing facilities to credit institutions, is an open system available to domestic and foreign credit institutions as a refinancing source. They must, however, satisfy the OeKB s standards of creditworthiness and comply with the legal requirements regarding the transactions to be financed as well as the conditions of uniform financing procedures, particularly with regard to the securities provided. in EUR million Outstanding Dec.31,2004 Net changes Outstanding Dec.31,2005 Net changes Outstanding Dec.31,2006 Net changes Outstanding Dec.31, Outstanding amounts and net changes in the refinancing scheme Assets 1 Refinancing contracts 25, , ,180 28, ,570 32,692 Refinancing offers Commitments 25, , ,273 28, ,454 32,919 Disbursements 22, , ,440 25, ,931 29,537 1 These figures include rescheduled debt. The export financing contracts and offers not utilised by December 31, 2007 are going to be disbursed as follows: Financing in EUR million Total contracts offers 1.2 Disbursements in the refinancing scheme until end , ,467 until end , ,680 until end until end , ,382 33

36 Export financing scheme operated by the OeKB in EUR million Financing contracts offers Total 1.3 Repayments due in the refinancing scheme until end-2008 until end-2009 until end-2010 until end-2011 until end-2012 until end-2013 until end-2014 until end-2015 until end-2016 after 2016 (up to 2043) 3,374 3,374 3,776 3,776 2,811 2,811 3,934 3,934 5, ,060 1, ,761 1, , , ,927 32, ,919 The export financing contracts already utilised at December 31, 2007 as well as the contracts and offers amounting to EUR 32,919 million not yet utilised at that date are contractually due for repayment by the debtors on the dates shown in the accompanying table. The longest export financing contract includes a credit period up to the year Turnover in the refinancing scheme Supplementing the previous survey of the volume of commitments and disbursements outstanding, the following summary breaks down the gross turnover in the refinancing scheme administered by the Bank. In the year under review, repayments received under credits extended reached EUR 4,795 million and covered 55% of the disbursements. in EUR million Turnover in the refinancing scheme Assets Refinancing contracts: New contracts issued 1 3,407 5,007 7,928 9,803 Contracts withdrawn 816 1, Repayments received 2,765 3,608 5,380 4,795 of which revolving credits Amounts disbursed 2,803 4,235 7,820 8,726 Refinancing offers: New offers Transformed into contracts Offers withdrawn Transformation of refinancing offers into refinancing contracts included. These figures include rescheduled debt. 34

37 Export financing scheme operated by the OeKB 3 Export financing by regions and countries The below tables 3.1 and 3.2 show the volume of export financing commitments outstanding and its utilisation at year-end as well as the newly issued financing contracts and amounts disbursed per year (turnover) grouped by regions; table 3.3 offers an overview by countries. Regions, country groups Outstanding December 31, 2006 Outstanding December 31, Commitments and disbursements outstanding in the refinancing scheme by regions Commitments Disbursements Commitments Disbursements Europe (incl. Turkey/CIS) incl. offers EU North America incl. offers Latin America incl. offers Asia incl. offers Australia, Oceania incl. offers Africa incl. offers Comprehensive policies 1 incl. offers Total 1 incl. offers Guarantees by aval 2 incl. offers EUR mill. % 5, , , , , , , , , EUR mill. % 4, , , , , EUR mill. % 6, , , , , , , , , EUR mill. % 5, , , , , Total 2 * Commitments incl. offers 28, , , , , , * of which (without CP and GA): OECD 2, , , , Non-European developing countries OPEC 4, , , , , , , , Financed export contracts, covered by revolving comprehensive and reinsurance guarantees (CP). 2 Financed export contracts, covered by guarantees by aval on bills of exchange (GA); the Kontrollbank refinancing line (KRR) for acceptance credits of banks has been included. 35

38 Export financing scheme operated by the OeKB Regions, country groups Turnover 2006 Turnover New contracts issued and amounts disbursed in the refinancing scheme by regions New contracts issued Amounts disbursed New contracts issued Amounts disbursed Europe (incl. Turkey/CIS) incl. offers EU North America incl. offers Latin America Asia incl. offers incl. offers Australia, Oceania Africa incl. offers incl. offers Comprehensive policies incl. offers Total 1 incl. offers Guarantees by aval incl. offers EUR mill. % 1, , , , , , EUR mill. % 1, , , EUR mill. % 2, , , , , , EUR mill. % 2, , , Total 2 * New contracts incl. offers 7, , , , , , * of which (without CP and GA): OECD Non-European developing countries OPEC

39 Export financing scheme operated by the OeKB in 1,000 EUR Turnover 2007 Outstanding as of Dec. 31, Turnover and amounts outstanding in the refinancing scheme by regions and countries 1 Regions and countries New contracts issued Amounts disbursed Commitments Disbursements Total 9,802,511 8,725,773 32,692,056 29,536,940 Europe 2,536,182 2,357,496 6,374,725 5,729,871 Bulgaria 5,635 24, ,431 65,850 Germany 5,081 5,786 37,033 33,636 Estonia 31,234 31,234 Italy 7,085 16,109 56,492 46,350 Malta 100, , , ,000 Poland 205, , , ,274 Romania 22, , , ,420 Sweden 66,196 66, ,612 56,012 Cyprus 11,871 41,224 39,263 Turkey 30,156 62, , ,705 Belarus 99,139 91, , ,064 Bosnia and Herzegovina 8,374 2, , ,711 Kazakhstan 847, , , ,436 Croatia 174, , , ,757 Russia 691, ,134 1,544,889 1,396,735 Serbia 62,959 48,616 44,801 44,717 Serbia and Montenegro 1,629 1, , ,669 Ukraina 671, ,294 1,175, ,693 Latin America 35,083 37, , ,421 Brazil 19,797 29, , ,223 Cuba 81,919 39,061 Asia 348, ,331 3,347,433 3,123,421 Bhutan 31,245 31,245 China (incl. Hong Kong) 204, , , ,618 India 6,182 3,535 33,369 30,621 Indonesia 1,149,269 1,149,269 Iraq 17, , ,690 Iran 50,150 50, , ,238 Jordan 4,848 57,075 57,075 Pakistan 48,570 48,570 Philippines 2, , ,019 Sri Lanka 20,132 7,601 65,327 47,477 Thailand 90,947 90,947 Vietnam 52,793 41, , ,273 Africa 4,293 9, , ,298 Egypt 3,971 3, , ,032 Algeria 54,906 54,906 Côte d Ivoire 78,546 69,579 Ghana 41,344 41,344 1 These figures include rescheduled debt. Newly issued contracts and commitments outstanding in each case excluding refinancing offers. Individual countries are shown if the commitments outstanding are in excess of EUR 25 million (country data without financed export contracts, covered by comprehensive policies and by guarantees by aval on bills of exchange). 37

40 Export financing scheme operated by the OeKB 4 Tied financial credits Acquisition of accounts receivable (Types of contract) The following tables show the shares of tied financial credits and the acquisition of accounts receivable in the total volume of refinancing contracts for export credits administered by the OeKB. Exports made on credit terms can be financed as supplier s credits (deferred payment allowed by exporters) or by means of loans extended to the foreign buyers (buyer credits). The exporter granting a supplier s credit to a foreign buyer can obtain refinance from a bank. If a tied financial credit is extended or accounts receivable are acquired by a bank, this leads to a contraction in the exporter s balance sheet. The bank in question can obtain refinancing from the OeKB for the credit portion covered by an adequate guarantee for the legal transaction (contract) or right underlying the financing operation. Outstanding December 31, 2006 Outstanding December 31, Commitments and disbursements outstanding in the refinancing scheme by types of contract Tied financial credits incl. offers Acquisition of accounts receivable incl. offers Total 1 incl. offers Other refinancing contracts incl. offers Total 2 incl. offers Commitments EUR mill. % 6, , , , , , , , Disbursements EUR mill. % 6, , , , Commitments EUR mill. % 5, , , , , , , , Disbursements EUR mill. % 5, , , , Turnover 2006 Turnover New contracts issued and amounts disbursed in the refinancing scheme by types of contract Tied financial credits incl. offers Acquisition of accounts receivable incl. offers Total 1 incl. offers Other refinancing contracts incl. offers Total 2 incl. offers New contracts issued EUR mill. % , , , , Amounts disbursed EUR mill. % , , New contracts issued EUR mill. % , , , , Amounts disbursed EUR mill. % , ,

41 Export financing scheme operated by the OeKB 5 Development of interest rates of the export financing scheme Interest policy The refinancing facilities for supplier and buyer credits as well as for equity investments abroad are made available at floating and fixed interest rates. The floating rate is determined by the OeKB for periods of three months, depending on the prevailing average cost of funding. The credit portion granted at the floating rate is repaid first in the case of individual non-revolving loans; the fixed interest rate is applied to the long-term credit portion (base financing). Refinancings of revolving loan facilities and within Kontrollbank s refinancing line (KRR) for export acceptance credits granted by banks are made available at special floating interest rates. The current interest rates of the export financing scheme are published via Reuters and are also available on the Internet under the address The Austrian export financing procedure is also described in the socalled Yellow Book published by the OECD. Credit repayment period in years Percentage of base financing 1 / fixed interest rate (% p.a.) Average rate (approximately) % p.a. Percentage of base financing 1 / fixed interest rate (% p.a.) Average rate (approximately) % p.a. Export financing scheme operated by the OeKB Development of interest rates less than 2 2 or more but less than 5 5 or more but less than 8 8 or more but less than or more Floating interest rate 2 Interest rate for revolving credits 2 KRR interest rate 2 less than 2 2 or more but less than 5 5 or more but less than 8 8 or more but less than or more Floating interest rate 2 Interest rate for revolving credits 2 KRR interest rate 2 July 1 - July 31, / / / / / Oct. 1 - Oct. 31, / / / / / Aug. 1 - Sept. 30, / / / / / Nov. 1 - Nov. 30, / / / / / Dec. 1 - Dec. 31, 2007 less than 2 50 / or more but less than 5 60 / or more but less than 8 80 / or more but less than / or more 90 / Floating interest rate 2 Interest rate for revolving credits 2 KRR interest rate % of the total loan; payable at the final maturities. The interest rates are fixed by the Export Financing Committee. 2 Determined by the OeKB for each quarter. Interest is payable quarterly in arrears. The premium for guarantees is not included in the above interest rates. since Jan. 1, / / / / /

42 Export financing scheme operated by the OeKB 6 Sources and allocations of funds (Flow of funds statement) The OeKB procures financial resources for the refinancing scheme through credit transactions on domestic and international financial markets. The below table shows the flow of funds statement for the refinancing scheme. in EUR million Flow of funds statement for the refinancing scheme 1 Allocations 20,441 22,096 35,039 38, ,964 Refinancing contracts: amounts disbursed Decrease in domestic liabilities in euro 2 foreign currencies Currency investments in Austria in euro foreign currencies Repayments of borrowings taken up abroad in euro foreign currencies Currency investments abroad in euro foreign currencies Redemption of the Bank s own bond issues in euro foreign currencies Deferred items Sources 2,803 3, ,223 3,771 1, , ,441 4,235 1, , ,874 6, , ,096 7,820 4, , ,303 8, , , ,039 8,726 6, ,150 4,675 9, , , , ,185 37,373 28,345 9, ,331 89,367 2,957 6,746 9,168 35,479 4, ,964 Repayments received under credits previously extended Increase in domestic liabilities in euro 2 foreign currencies Currency investments in Austria in euro foreign currencies Borrowings taken up abroad in euro foreign currencies Currency investments abroad in euro foreign currencies Issue of the Bank s own bonds in euro foreign currencies Deferred items 2,765 3, ,088 4,804 1, , ,608 1, , ,454 7,374 2, ,380 4, , ,205 8, ,296 2,512 2, ,795 5, ,150 4,596 9, ,053 3,800 4, ,647 38,057 28,494 9, ,919 93,674 2,957 6,746 16,230 51,404 4,133 1 The shifts in the items of the flow of funds statement effected in the beginning of 1999 and of 2001 and resulting from the conversion of existing loan operations in Austrian schillings and foreign currencies to euro are reflected only in the cumulative values The decrease and increase in domestic liabilities in Austrian schillings and euro are offset against each other on a monthly basis, only the balances are shown. 40

43 Export financing scheme operated by the OeKB The total of all funds applied within the export financing scheme amounted to EUR 38.4 billion in Of this amount, EUR 8.7 billion were disbursed as credits and EUR 29.7 billion were primarily used for repaying borrowed funds. In % (EUR 4.8 billion) of the funds required came from repayments received of export financing credits, while new borrowings totaled EUR 33.6 billion. Of the new borrowings, EUR 10.2 billion came from domestic sources (in euro and foreign currencies) and EUR 23.4 billion from abroad (also in euro and foreign currencies). As in 2006, in the year under review the share of foreign borrowing exceeded that of domestic borrowing. The total financing volume increased by 10% in comparison to Guarantees of the Republic of Austria under the 1981 Export Financing Guarantees Act Under the 1981 Export Financing Guarantees Act, the Federal Minister of Finance is authorised to assume liabilities in the form of guarantees in favour of the creditors in borrowing transactions of the OeKB arranged under the export financing scheme. Furthermore, the Federal Minister of Finance is authorised to compensate the OeKB for exchange rate losses resulting from the execution of borrowing transactions in foreign currencies. A total liability limit of EUR 40 billion has been established for these guarantees. The OeKB pays a respective guarantee fee to the Federal Ministry of Finance. For further details see annexed Part IV Legal Basis. The borrowings covered by guarantees pursuant to the Export Financing Guarantees Act may be used for the purposes listed in section 1(1) of the said Act. The law contains provisions regarding the maximum duration of, and cost involved for, guaranteed transactions, as well as the limit authorised for each single borrowing transaction. Amendment to the Export Financing Guarantees Act Under the Amendment to the Export Financing Guarantees Act (Federal Law Gazette I no. 59/2007, issued on July 31, 2007), the period of validity of the Export Financing Guarantees Act was extended until December 31, At the same time, the liability limit was increased from EUR 30 billion to EUR 40 billion, and procedures were adjusted. 41

44 Export financing scheme operated by the OeKB Guarantees (in EUR million) for Principal amounts Interest Exchange risk Total Guarantees under the 1981 Export Financing Guarantees Act Outstanding as of December 31, 2004 Of which transactions in euro in foreign currencies Reserve for the future (liability limit: EUR 25,000 million) 1 Increase 2005 Decrease 2005 Net 2005 Outstanding as of December 31, 2005 Of which transactions in euro in foreign currencies Reserve for the future (liability limit: EUR 30,000 million) 2 Increase 2006 Decrease 2006 Net 2006 Outstanding as of December 31, 2006 Of which transactions in euro in foreign currencies Reserve for the future (liability limit: EUR 30,000 million) Increase 2007 Decrease 2007 Net 2007 Increase Decrease Net = Outstanding as of Dec. 31, 2007 Of which transactions in euro in foreign currencies Reserve for the future (liability limit: EUR 40,000 million) 3 19,004 3,148 2,417 1,412 16,587 1,736 6, , , ,002 3,249 4,075 1,439 16,927 1,810 9, , , ,801 3,283 4,512 1,453 19,289 1,830 13, , , ,304 2,776 9,790 82,083 2, ,438 29,221 3,352 8,607 1,340 20,614 2,012 22,152 3,829 18,323 2,848 6,799 4,700 2,099 24,251 5,514 18,737 5,749 10,192 7,359 2,833 27,084 5,965 21,119 2,916 14,416 8,927 5, ,870 91,297 32,573 9,947 22,626 7,427 1 Federal Law Gazettes I no. 64/2000 and 71/ Federal Law Gazette I no. 94/ Federal Law Gazette I no. 59/ Under the 1980 Amendment interest is no longer counted against the liability limit. 42

45 IV. Legal Basis Page 1 Export Guarantees Act Export Guarantees Decree Export Financing Guarantees Act 53 (Non-binding English versions of the Ausfuhrförderungsgesetz, the Ausfuhrförderungsverordnung 1981 and the Ausfuhrfinanzierungsförderungsgesetz 1981 for information purposes only.) The following Legal Basis and General Business Conditions regarding the guarantees of the Republic of Austria pursuant to the Export Guarantees Act are also available on the Internet at On this website you will also find the updated Guidelines for Cover for over 100 export markets, information on the premium system for export guarantees pursuant to the Export Guarantees Act as well as the current interest rates applicable to the OeKB s export financing scheme. Moreover, our homepage contains information on topical issues, international cooperation and the general framework. 43

46 Legal Basis 1 Export Guarantees Act as amended with effect from January 11, 2008 (binding is the wording published in the Federal Law Gazette). Federal Law relating to the granting of guarantees for contracts and rights (Export Guarantees Act - ExpGA), published in Federal Law Gazette no. 215/1981, as amended by Federal Law Gazettes no. 249/1984, 560/1986, 651/1987, 288/1991, 961/1993, 733/1995, I no. 63/2000, 71/2003 (Act accompanying the Budget Act 2003/Part 3, Article 35), 95/2005, 58/2007, 2/2008 and 32/2008. Section 1. (1) The Federal Minister of Finance is authorised to guarantee on behalf of the Republic of Austria (the Federation ) the due performance of contracts listed below by foreign contracting parties as well as the integrity of the rights of exporters, which serve directly or indirectly to improve the balance of current transactions in goods and services; projects abroad enjoy the same status as these contracts and rights in case their realization by domestic or foreign enterprises is of Austrian interest; these projects are, in particular, for environmental protection, waste disposal and infrastructure; 1. relating to the delivery of goods and their production, as well as to the performance of other services; 2. relating to the financing of contracts pursuant to no. 1 by advancing credits or loans, which may or may not be evidenced by negotiable instruments, or by acquiring receivables of contracts pursuant to no. 1; 3. relating to the integrity of goods delivered in commission to stock abroad or of machines used abroad for the production of goods or the performance of services, as well as of cash deposits, bonds and other advances; 4. relating to guarantee and insurance contracts which guarantee the performance of the obligations of the foreign party pursuant to no.s 1 and 2; 5. relating to participations or contracts similar to participations in foreign enterprises. (2) The Federal Minister of Finance is also authorised to guarantee a certain rate of exchange between the euro and the contract currency (rate of exchange risk). (3) The Federal Minister of Finance is also authorised to guarantee receivables arising from credits or from the acquisition of receivables, provided they have already been guaranteed pursuant to paragraph 1. Section 2. The Federal Minister of Finance is also authorised to facilitate the financing of contracts pursuant to section 1 paragraph 1 by guaranteeing on behalf of the Federation bills of exchange by aval either for the issuer or for the acceptor. Section 2a. The Federal Minister of Finance is authorised to enter into contracts on behalf of the Federation to improve the risk of the overall portfolio of guarantees pursuant to sections 1 and 2. Section 3. (1) The total of guarantees assumed pursuant to sections 1 and 2 must not at any time exceed 45 billion euro. (2) Towards this aggregate guarantee limit shall be counted: 1. the covered basic amounts (maximum amounts to the extent of the percentage of cover) under guarantees pursuant to section 1 paragraphs 1 and 3; 2. the total of the notified request for financing and in case of non-notification, the maximum amounts under guarantees pursuant to section 2 assumed to be the required financing. (3) Interest and costs which may be agreed in the contracts as well as guarantees under section 1 paragraph 2 and promises to grant guarantees shall not be counted towards the ceiling of guarantees. (4) The guarantees may be assumed in euro, in a currency freely convertible at the date the contract is made or in a clearing currency. In case guarantees are granted in a foreign currency, the conversion into euro shall be effected at the reference rates of exchange, published by the European Central Bank. Section 4. (1) The Federal Minister of Finance determines by decree with the consent of the Main Committee of Parliament the rules under which guarantees pursuant to sections 1 and 2 may be granted. (2) These rules shall duly reflect the development purpose of granting guarantees. Section 5. (1) The Federal Minister of Finance is authorised to entrust the bank-related handling of applications for guarantees (banker s evaluation by rating and processing), the execution of guarantees, the entering into contracts pursuant to section 2a and the protection of the rights of the Federation arising under guarantees, except for litigation at court, to an agent of the Federation pursuant to sections 1002 et seq. of the General Code of Civil Law (ABGB). The agent of the Federation must have the authorisations for banking business in Austria pursuant to section 1 paragraph 1 no.s 1, 3, 4, 7, 8, 10 and 18 Banking Act or pursuant to section 9 Banking Act. Moreover, he must 44

47 Legal Basis warrant a solid, reliable and cost-effective management of the export guarantee scheme. The position of the agent of the Federation shall be regulated in detail by an agreement between the principal and the agent of the Federation. In case of applications for guarantees for the agent of the Federation himself or for domestic export credit insurers, the bank-related handling is entrusted to Oesterreichische Nationalbank. (2) The examination of applications for guarantees pursuant to sections 1 and 2 in the individual case exceeding two hundred thousand euro is entrusted to an advisory council at the Federal Ministry of Finance. Members of the advisory council, which performs this examination under overall economic aspects, including environmental and employment related aspects, are: 1. one representative of the Federal Ministry of Finance as chairman and respectively one representative of the Federal Chancellor s Office, of the Federal Ministry for Economy and Labour, of the Federal Ministry of Agriculture and Forestry, Environment and Water Management as well as of the Federal Ministry for European and International Affairs; 2. one representative respectively of the Austrian Federal Economic Chamber, of the Federal Chamber of Labour, of the Conference of the Presidents of the Austrian Chambers of Agriculture and of the Federation of Austrian Trade Unions; 3. one representative of the Oesterreichische Nationalbank; 4. one representative of the agent of the Federation without vote. (4) The members of the advisory council and its deputy members exercise their functions in an honorary capacity. (5) The Federal Ministry of Finance organises the examinations by the advisory council. (6) All persons engaged in the handling and examination of applications for guarantees are obliged to treat confidentially any official, business or operational secrets which have come to their knowledge when so acting. Section 6. The Federal Minister of Finance has to report to the Main Committee of Parliament quarterly and in writing on the extent of guarantees granted pursuant to this Federal Law, on the development of debts paid and recoveries received in connection with these guarantees and on guarantees granted for major projects with significant environmental effects. The Federal Minister of Finance has to report annually to the Main Committee of Parliament on the activities of the advisory council pursuant to section 5 paragraph 2 which report thereafter has to be published by the Federal Ministry of Finance. The Federal Minister of Finance has to submit to the Main Committee of Parliament yearly a report on guarantees granted for projects of the development bank pursuant to section 9. Section 7. (1) The agent of the Federation (section 5 paragraph 1) shall collect the fees for guarantees and all recoveries of payments made by the Federation under guarantees and shall credit such amounts to a current account of the Federation with the agent of the Federation. The agent of the Federation is authorised to debit to such account the fee due to it. (2) In case the Federation is called upon to honour guarantees pursuant to sections 1 and 2 or in case interest and costs must be spent to avert damages or to minimize losses, the credit balance from time to time available on the account of the Federation shall be used to meet such payments. In case no credit balance is available, the Federation shall allocate other budget means for such payments. (3) So long as the credit balance is not used for payments, the credit balance must be applied in the export financing scheme of the agent of the Federation. Section 8. (1) No stamp duty shall be levied on bills of exchange guaranteed pursuant to section 2. (2) Insurance contracts for which a reinsurance guarantee of the Federation is issued pursuant to section 1 paragraph 1 no. 4 are exempted from insurance tax. Section 8a. (1) Oesterreichische Kontrollbank Aktiengesellschaft remains to be the agent of the Federation until an agency agreement pursuant to section 5 paragraph 1 is made. (2) In case a new agent of the Federation is appointed pursuant to section 5 paragraph 1, the business being handled by Oesterreichische Kontrollbank Aktiengesellschaft but not yet completed shall continue to be administered by Oesterreichische Kontrollbank Aktiengesellschaft against an adequate fee. (3) The Federal Government has to inform Oesterreichische Kontrollbank Aktiengesellschaft at least two years prior to initiating a procurement procedure pursuant to section 5 paragraph 1. 45

48 Legal Basis Austrian development bank Section 9. (1) The Federal Minister of Finance is authorised to enter exclusively with a subsidiary of the agent of the Federation pursuant to section 5 paragraph 1 into an agreement on the establishment of and on the services to be provided by a development bank. (2) The tasks of the development bank are in particular the long term financing of sustainable investments in developing countries and the handling of federal measures to support the preparation and the implementation of private-sector projects in developing countries. The Austrian development bank is committed to the goals and principles of the Austrian development policy pursuant to the Development Cooperation Act, Federal Law Gazette I no. 49/2002 as amended. (3) In the interest of the objectives of paragraph 2, the Federal Minister of Finance is authorised within the framework of the agreement according to paragraph 1 to determine rules differing from those laid down according to section 4 paragraph 1 in respect of guarantees to be granted to the development bank, in particular in view of the extent of cover and the admission of claims. (4) Applications for guarantees will be filed by the development bank, claims will be processed by the Federal Ministry of Finance. (5) An economy and development board will be set up to advise on the development policy of the development bank and to evaluate applications for guarantees from the development perspective. Section 5 paragraphs 4 to 6 apply to the board. Members of the board are: 1. one representative of the Federal Ministry of Finance as chairman; 2. one representative of the Office of the Federal Chancellor; 3. one representative of the Federal Ministry of European and International Affairs; 4. one representative of the Federal Ministry of Economy and Labour; 5. one representative of the Austrian Development Agency; 6. one representative of the Austrian Federal Chamber of Economy; 7. one representative of the Federal Chamber of Labour; 8. one representative of the Austrian Development Bank without vote. The board may call in experts without the right to vote. The by-laws of the board are issued by the Federal Minister of Finance in agreement with the Federal Chancellor, the Federal Minister of European and International Affairs and the Federal Minister of Economy and Labour. (6) As far as fees for guarantees and payments for claims under guarantees are concerned, the clearing between the Federation and the development bank will be made by way of the agent of the Federation on the account pursuant to section 7. Section 10. (1) (irrelevant) (2) (irrelevant) (3) The Export Guarantees Act, Federal Law Gazette no. 215/1981, as amended by Federal Law Gazette I no. 58/2007, will expire on December 31, All guarantees granted prior to this date will not be affected thereby. Section 11. The Federal Minister of Finance is entrusted with the implementation of this Federal Law. 46

49 Legal Basis Export Guarantees Decree Decree of the Federal Minister of Finance dated April 30, 1981, relating to the regulations for the granting of guarantees by the Federal Republic (Federation) in implementation of the 1981 Export Guarantees Act (1981 Export Guarantees Decree), published in Federal Law Gazette no. 257/1981, as amended by the Decrees published in Federal Law Gazettes no. 203/1988, 349/1991, 130/1994, 816/1995, II no. 88/1998, 212/1998 and 90/1999. In accordance with section 4 paragraph 1 of the 1981 Export Guarantees Act, Federal Law Gazette no. 215/1981, as amended, and with the consent of the Main Committee of Parliament the following regulations are decreed. Form and object of the liabilities Section 1. (1) The liabilities are assumed in writing: a) as guarantees for the due performance of contracts by the foreign contracting partners as well as guarantees for the integrity of the rights of export enterprises pursuant to section 1 of the Export Guarantees Act with regard to economic and/or political risks as well as the exchange rate risk; b) as commitments to guarantee bills of exchange by aval, which are to facilitate the financing of contracts and rights pursuant to section 1 of the Export Guarantees Act. (2) A promise to grant a guarantee may be given (promise). If a promise is given, the Federation is committed to convert it into a guarantee in accordance with paragraph 1 if the terms of the contract specified in the application to give a promise are not less favourable in the definitive contract and during the lifetime of the promise no material changes in the circumstances relevant for the issuance of the guarantee have occurred or become apparent (Section 936 ABGB General Code of Civil Law). (3) Guarantees issued pursuant to section 2 paragraph 1 no.s 1 to 7 and 9 shall be based on general business conditions which together with the terms of the respective guarantees constitute the terms of the guarantee agreements. Types of liabilities Section 2. (1) 1. Guarantees to cover risks resulting from a) contracts on the supply and the production of goods and the performance of services by exporters to foreign contracting parties (guarantees for direct deliveries and services); b) license agreements and agreements on the exploitation of patents, license agreements on know-how, agreements on copyright (comprehensive or specific copyright) of exporters, as well as agreements relating to the performance of other services with foreign contracting parties; c) lease or lease-purchase contracts on exporter s goods located abroad in the hands of foreign contracting parties and serving the production of other goods; d) contracts on the supply and the production of goods and the performance of services by enterprises domiciled abroad, if the proceeds are applied directly or indirectly for the payment of contracts of exporters. 2. Guarantees to cover risks resulting from contracts on the supply and the production of goods and the performance of services by enterprises domiciled abroad to that extent, as exporters participate in the respective contract (guarantees for indirect deliveries and services). 3. Guarantees to cover risks resulting from the following contracts or commitments of credit institutions domiciled in Austria or abroad: a) loan or credit agreements entered into with enterprises domiciled abroad and serving the payment of legal transactions (guarantees for tied financial credits); b) credit transactions (bond issues, commitments arising from bills of exchange or bonds or other commitments) the proceeds of which are applied for the payment of contracts; c) credit agreements which are concluded between a credit institution domiciled in Austria and a contracting party domiciled abroad, insofar as for the underlying legal transactions liabilities have already been assumed (debt rescheduling agreements). 4. Guarantees to cover risks resulting from participations or legal transactions resembling participations of exporters in enterprises domiciled abroad (investment guarantees). 5. Guarantees to cover risks under a ceiling of turnover for contracts on the supply and the production of goods and the performance of services by exporters to a specific enterprise domiciled abroad (turnover guarantees). 47

50 Legal Basis 6. Guarantees to cover risks under ceilings of turnover for all contracts on the supply and the production of goods and the performance of services by exporters to enterprises domiciled abroad, be it either in one or in several recipient countries (country turnover guarantees or comprehensive guarantees). 7. Guarantees to cover a) political risks resulting from the establishment of stocks of merchandise abroad by exporters, in view of the integrity of the goods located in these stocks of merchandise (guarantees for stock in commission); b) political risks resulting from the use of machines and equipment by exporters to perform their contracts abroad, in view of the integrity of these machines and equipment (machinery deployment guarantees); c) risks resulting from cash deposits, bonds or other advances made by exporters abroad in the context of contracts (advance guarantees). 8. Guarantees to cover risks resulting from guarantee or insurance contracts undertaken by export credit- or export credit insurance institutions (reinsurance guarantees). 9. Guarantees to cover risks resulting from the purchase of accounts receivable: a) guarantees to cover risks resulting from contracts of credit institutions domiciled in Austria or abroad on the acquisition of accounts receivable resulting from legal transactions; b) guarantees to cover risks resulting from accounts receivable acquired by Oesterreichische Kontrollbank Aktiengesellschaft insofar as liabilities have already been assumed for such accounts receivable. 10. Guarantees to cover the applicability of a certain rate of exchange between Austrian Schillings and the currency of the contract, which may be a currency freely convertible, a currency not freely convertible or a clearing currency (exchange risk guarantees). 11. Guarantees to cover risks in the context of initiating export activities according to section 1 Export Guarantees Act (market developing guarantees). (2) Guarantees by aval on bills of exchange: guarantees for the drawer or for the acceptor of bills of exchange which were issued by credit institutions or exporters for the purpose of financing contracts. Assumption of liabilities Section 3. (1) Applications for the issuance of a guarantee or a guarantee by aval on a bill of exchange are to be filed in writing or by electronic means at the Oesterreichische Kontrollbank Aktiengesellschaft. (2) The contracts underlying the guarantee or the guarantee by aval on a bill of exchange may be made out in Austrian Schillings, in a currency freely convertible, in a currency not freely convertible or in a clearing currency. (3) Guarantees or guarantees by aval on bills of exchange may be assumed in Austrian Schillings, in a currency freely convertible at the date the contract is concluded or in a clearing currency. (4) Guarantees or guarantees by aval on bills of exchange can be granted for the entire contract or right or only for a part thereof (partial covering). (5) With regard to guarantees pursuant to section 2 paragraph 1 no.s 6 and 9 a specific discretionary power and/or a free limit in respect of each customer may be granted to the beneficiary of the guarantee unless a specific authorisation is granted. With regard to contracts which fall within the beneficiary s of the guarantee discretionary power, the liability of the Republic can be made dependent on the obligation of the beneficiary to have ascertained the sound financial standing of the foreign customer. (6) Guarantees pursuant to section 2 paragraph 1 no. 8 may be issued unconditionally. Self-participation Section 4. (1) At the issuance of guarantees under section 2 paragraph 1 no.s 1 to 9 a self-participation of the beneficiary of the guarantee may be stipulated in case of an economic and/or a political fact. (2) When a guarantee is issued under section 2 paragraph 1 no.s 10 and 11 a self-participation of the beneficiary of the guarantee may be stipulated. (3) If a self-participation is determined it shall amount to at least 5%, at the most 50% of the maximum amount determined in the guarantee agreement. 48

51 Legal Basis Special obligations of the beneficiary of the guarantee and of the guarantee by aval on a bill of exchange Section 5. (1) It shall be inter alia provided in the agreements on the assumption of liability, that 1. the beneficiary of the guarantee shall, if so requested at any time, inform the Republic on details and the state of the contract or right underlying the guarantee and disclose his books and documents to the extent necessary for the examination of the transaction involved; 2. prior to any material amendment of the contractual basis of the contract or right underlying the guarantee the beneficiary of the guarantee shall obtain the consent of the Republic; as a material amendment are inter alia to be considered the extension of the payment/total payment date or the altering of securities; 3. the beneficiary of the guarantee is bound to instruct upon expiry of a certain delay a debt collection agency or a lawyer resident in the country of the foreign contracting partner to collect an unpaid claim, unless the Republic agrees to a different procedure. Furthermore, the beneficiary of the guarantee may be obligated to inform the Republic within a certain delay in writing of the non-performance or contravention of the contract or right underlying the guarantee, of the occurrence of a fact justifying a claim according to section 6 and of the instructing of a debt collecting agency or a lawyer; 4. the Republic may at any time, if the foreign contracting partner has not performed his contractual obligations or if facts justifying a claim according to section 6 have occurred, direct the beneficiary of the guarantee, whether and in which way the beneficiary of the guarantee has to perform his contractual obligations resulting from the contract or right under guarantee. For guarantees under section 2 paragraph 1 no. 2 the right to give directives is only applicable with regard to the beneficiary of the guarantee. With regard to guarantees under section 2 paragraph 1 no.s 5 and 6 it shall be stipulated furthermore that the Republic is entitled to restrain the beneficiary of the guarantee from the conclusion of further contracts under the guarantee agreement with the defaulting contracting partner; 5. with regard to guarantees pursuant to section 2 paragraph 1 no. 6 the beneficiary of the guarantee shall as a rule ascertain the financial standing of all foreign contracting partners for which neither a specific authorisation nor a free limit was granted, by obtaining a written report (inquiry) or the checking of the past orderly performance of the contracts by the foreign contracting partner; 6. the beneficiary of the guarantee shall take all steps necessary to enforce his contractual rights against the foreign contracting partner. If goods to be delivered according to the obligations of the beneficiary of the guarantee have already been manufactured and are still at his disposal, they shall be turned to account in the most profitable way; 7. the beneficiary of the guarantee is committed to take over the terms agreed by the Republic in a rescheduling for the self-participation, unless the Republic agrees to a different procedure; 8. costs and losses incurred in connection with measures pursuant to no.s 4, 5 and 7 shall be refunded to the beneficiary proportionately. (2) The beneficiary of the guarantee is to be obligated to take all steps to prevent the Republic from damage. The beneficiary of the guarantee shall report without delay, at the latest however within fourteen days from cognisance, all facts which became known to him which may jeopardise the orderly performance of the subject transaction. (3) It shall be provided that the beneficiary of a guarantee by aval on a bill of exchange (drawer or acceptor) shall notify in writing to the Republic his financing requirement at the filing of the application for the issuance of the guarantee by aval on a bill of exchange and, in the following, at the commencement of each clearing period for that period. An increase of the notified financing requirement during the clearing period is possible. The notified financing requirement is limited with the maximum amount specified in the commitment to guarantee by aval. If no financing requirement is notified, the maximum amount specified in the commitment to guarantee by aval is deemed the financing requirement. Admission of claims Section 6. (1) As conditions precedent for the admission of claims resulting from guarantees under section 2 paragraph 1 no.s 1 to 3, 5, 6 and 9 it shall be provided, that 1. the beneficiary of the guarantee has performed his contractual obligations or is ready to perform them, 2. the foreign contracting partner does not or cannot perform his contractual obligations, 3. an economic or political fact pursuant to paragraph 2 or 3 is proven or has occurred and 49

52 Legal Basis 4. a period of three months after maturity or in the case of a loss during production a period of six months after the occurrence of a fact has passed (waiting period). There shall be no waiting period when a fact pursuant to paragraph 2 no. 2 has occurred and in the case of claims resulting from guarantees under section 2 paragraph 1 no. 3 alineae b and c, no.s 5, 6 and no. 9 alinea b. (2) Economic facts are: 1. a reminder in writing by the beneficiary of the guarantee addressed to his foreign contracting partner, summoning him to perform the contract; the presentation of securities for payment shall produce the same effect; 2. insolvency of the foreign contracting partner, if it is proven by the commencement of insolvency proceedings; 3. impossibility of performance by the beneficiary of the guarantee or by his agents owing to circumstances they are not responsible for and which have occurred abroad. (3) Political facts are: 1. war or warlike events; 2. rebellion or revolution; 3. governmental measures limiting or preventing the transfer or the free disposal by the beneficiary of the guarantee with regard to the consideration due to him; a default in payment shall be equivalent if the debtor or its guarantor represents the public authority and cannot, either judicially or administratively, be made insolvent. With respect to guarantees under section 2 paragraph 1 no.s 5 and 6 this fact has occurred when the transfer or payment delay has lasted for more than three months. 4. impossibility of performance owing to other political events. (4) As conditions precedent for the admission of claims resulting from guarantees under section 2 paragraph 1 no. 4 it shall be provided that an economic or political fact pursuant to no. 1 or 2 is proven or has occurred: 1. An economic fact has occurred when composition or bankruptcy proceedings or proceedings equivalent thereto have been commenced against the enterprise in which the participations or rights under contracts resembling participations have been acquired. 2. A political fact has occurred when a) participations or rights resulting from contracts resembling participations are directly or indirectly, totally or partially expropriated, b) such an essential part of the assets is destroyed or expropriated that the enterprise can no longer be run without a loss, or c) the transfer of the proceeds of the sale or the liquidation of participations, repayment of capital and payment of interest on contracts resembling participations, the transfer of a compensation or the free disposal thereover are limited or prevented. (5) 1. As conditions precedent for the admission of claims resulting from guarantees under section 2 paragraph 1 no. 7 alineae a and b it shall be provided that goods stored on commission abroad or machines and equipment kept abroad are, for direct or indirect political reasons, destroyed or expropriated. 2. As conditions precedent for the admission of claims resulting from guarantees under section 2 paragraph 1 no. 7 alinea c it shall be provided that an economic or political fact according to alinea a or b is proven or has occurred: a) An economic fact has occurred when an advance is withdrawn or not paid back due to a wrongful action or omission or insolvency of the foreign contracting partner. b) A political fact has occurred when an advance is withdrawn or not paid back for direct or indirect political reasons. Section 7. (1) With regard to guarantees pursuant to section 2 paragraph 1 no. 10 it shall be provided as condition precedent for the admission of a claim that the exchange rate applied by the bank on the payment day is to the disadvantage of the beneficiary of the guarantee different from the exchange rate laid down in writing in the declaration of guarantee or the addendum thereto. (2) With regard to guarantees pursuant to section 2 paragraph 1 no. 11 it shall be provided as condition precedent for the admission of a claim that the market goal stipulated in the declaration of guarantee has not been reached. Section 8. The contracts concluded with export credit- or export credit insurance institutions shall provide that claims resulting from guarantees pursuant to section 2 paragraph 1 no. 8 shall be deemed justified, if they pay out a claim resulting from liabilities and reinsurance guarantees they have assumed. 50

53 Legal Basis Refusal of liability Section 9. (1) It shall be provided that the liability resulting from the guarantees under section 2 paragraph 1 no.s 1 to 7, 9 and 10 shall in particular be excluded in the following cases: 1. if losses have occurred for which the beneficiary of the guarantee or his agents are responsible; 2. if the beneficiary of the guarantee, deliberately or by gross negligence, violates a stipulation of the guarantee contract; 3. if the beneficiary of the guarantee contravenes domestic or foreign legal regulations, except in case he can prove that the non-performance of the contractual obligations by the foreign contracting partner is not caused by the contravention referred to above; 4. if the beneficiary of the guarantee was already at the time he applied for the guarantee aware that a) performance of the contract by the foreign contracting partner is impossible, b) with regard to another contractual agreement of the beneficiary of the guarantee with the foreign contracting partner the latter has within the last two years before the application was submitted, committed a breach of contract, c) the foreign contracting partner is insolvent, in particular the assets of the foreign contracting partner have been subjected to insolvency proceedings, or d) judicial execution proceedings have been commenced into the assets of the foreign contracting partner; 5. if the beneficiary of the guarantee has deliberately or by gross negligence made false statements in the application for the issuance of the guarantee; 6. if losses have occurred, for which following commercial usage insurance except credit insurance is available for the beneficiary of the guarantee with insurance companies domiciled in this country; 7. if with regard to guarantees under section 2 paragraph 1 no. 6 the provisions of section 5 paragraph 1 no. 6 have not been complied with, when an economic fact has occurred. (2) It shall be provided that the beneficiary of the guarantee has to refund the amounts already obtained with interest if the refusal of the liability is based on circumstances which have occurred or become apparent after the recognition of the claim. Interest starts when the beneficiary of the guarantee received the amount and shall be computed at a rate of 300 basis points above the variable interest rate of the Export Financing Scheme of Oesterreichische Kontrollbank Aktiengesellschaft as applicable at the time. Maturity of the compensation due under the liability Section 10. The maturity of the compensation due to the beneficiary of guarantees pursuant to section 2 paragraph 1 no.s 1 to 7 and 9, if a claim is deemed to be justified, shall coincide with the recognition of the claim, but not before the original maturity date of the guaranteed claim; an acceleration of maturity in case of breach of contract, which was stipulated between the beneficiary of the guarantee and the foreign contracting partner, cannot be asserted against the Republic. Section 11. The maturity of the compensation due to the beneficiary of guarantees pursuant to section 2 paragraph 1 no.s 10 and 11, if a claim is deemed to be justified, shall coincide with the recognition of the claim. Section 12. The contractual agreements with export credit- or export credit insurance institutions shall provide the point of time at which the guaranteed amount is due for payment. Cession of rights after facts justifying a claim have occurred and refund of expenses Section 13. (1) The beneficiary of the guarantee shall be obliged to assign that portion of his claims against the foreign contracting partner to the Republic that corresponds with the compensation payable under the guarantee. Such assignment shall be made at the latest upon recognition of the claim and the beneficiary of the guarantee shall take all legal steps necessary to that end and, in case he has obtained sureties, he shall assign them proportionally and with equal rank to the Republic. (2) If the Republic does not itself represent the claim, the beneficiary of the guarantee shall take all steps necessary for the enforcement of the contractual rights in his own name, but with the consent of the Republic for proportionate account of the Republic. The consent is to be granted if the result to be expected from the necessary steps is economically adequate in view of the expenses caused by such steps. If goods to be delivered according to the obligations of the beneficiary of the guarantee have already been manufactured and are still at his disposal, they shall, unless otherwise directed in the individual case, be turned to account with the consent of the Republic in the most profitable way and upon request of the Republic be pledged in favour of the Republic. Furthermore, the beneficiary of the guarantee shall be put under the obligation to comply with the directives of the Republic concerning specific measures to be taken for the enforcement of rights. (3) The beneficiary of the guarantee shall be obligated to take over the terms agreed by the Republic in a rescheduling for the self-participation, unless the Republic agrees to a different procedure. 51

54 Legal Basis (4) It shall, furthermore, be provided in which manner incoming payments and other revenue are to be distributed between the beneficiary of the guarantee and the Republic. (5) If in connection with steps pursuant to paragraph 2 costs occur they shall be refunded to the beneficiary of the guarantee proportionally. Fees for the handling of applications, premiums payable for guarantees and guarantees by aval on bills of exchange Section 14. (1) A fee is payable for handling the file, which is also due when an application is turned down. A premium shall be agreed for the issuance of a guarantee in accordance with section 1 paragraph 1. For that part of a guarantee for which an irrevocable reinsurance guarantee of a foreign export credit- or export credit insurance institution has been issued, no premium is to be charged for the Republic. (2) The fee for handling the application amounting to 0.1% of the value of the contract, but not less than 10 euro and not more than 720 euro or the respective countervalue in Austrian Schillings, is due to be paid upon receipt of the debit order. (3) A reasonable premium, dependent on the kind and extent of the risk covered, is to be charged for guarantees. (4) Provided that nothing else is stipulated, the premium for guarantees pursuant to section 2 paragraph 1 no.s 1, 2, 3 alineae a and b, 4, 7, 8, 9 alinea a, no.s 10 and 11 is payable upon acceptance of the guarantee. The premium for guarantees pursuant to section 2 paragraph 1 no. 3 alinea c, no.s 5, 6 and 9 alinea b is due and payable quarterly in arrears. (5) In case the Republic has accepted a change in the contents or in the extent of the guarantee, a recalculation of the premium as well as a charging of an additional premium or a refund of premium shall be provided. In case of a refund of a balance a lump-sum for cost may be deducted. (6) a) The premium for commitments to guarantee a bill of exchange by aval shall correspond to the risk and amount to at least 0.05% for each commenced quarter calendar year of the lifetime of such commitment. b) The computation is to be based on the maximum amount of the commitment to guarantee a bill of exchange by aval or on the notified financing requirement for the respective clearing period. Provided that nothing else is stipulated in the respective commitment, the clearing period is equal to a quarter calendar year. For long-term commitments it may amount to a year or more. At the commencement of the lifetime of the commitment to guarantee a bill of exchange by aval the computation of the premium is to be based on the period extending from the validity of the said commitment to the commencement of the following clearing period and the premium is to be computed proportionally. This applies also to the subsequent notification of a higher financing requirement during the clearing period. The first premium is due immediately upon receipt of the aforesaid commitment, the subsequent premiums immediately upon receipt of the debit orders. (7) If in the course of handling a particular contract a risk covered by a guarantee is taken under cover by transformation into another guarantee, the premium already paid is to be set off or refunded upon application from the day of the transformation. (8) If the beneficiary of the guarantee or of the guarantee by aval on a bill of exchange cannot satisfy a condition imposed by the Federation at the assumption of the liability, the premium already paid for the guarantee or the guarantee by aval is to be refunded upon application, in case of a guarantee after deduction of a lump-sum for cost. (9) If the fee for handling a file or the premium for a guarantee or the commitment to guarantee a bill of exchange by aval is not paid immediately upon being charged, default interest amounting to 300 basis points above the variable interest rate of the Export Financing Scheme of Oesterreichische Kontrollbank Aktiengesellschaft as applicable at the time may be debited for the period of time commencing with the charge until the premium is received. Enforcement of the claims resulting from liabilities by legal action Section 15. (1) The assignment of claims resulting from guarantees can be prohibited or limited. (2) With regard to the enforcement of claims arising under guarantees by legal action certain time limits may be imposed. Final regulation Section 16. The 1977 Export Guarantees Decree, Federal Law Gazette no. 282, is repealed. Decree II no. 90/1999: Section 17. These amendments of the Decree shall become effective on April 1, Section 18. This Decree implements the Council Directive 98/29/EC, Official Journal L 148/22 of May 19,

55 Legal Basis Export Financing Guarantees Act Federal Law dated April 8, 1981, relating to the financing of contracts and rights (1981 Export Financing Guarantees Act - EFGA), published in Federal Law Gazette no. 216/1981, as amended by Federal Law Gazettes no. 196/1967, 193/1969, 187/1970, 416/1974, 793/1974, 393/1975, 153/1976, 158/1977, 219/1978, 668/1978, 268/1980, 216/1981, 221/1982, 250/1984, 561/1986, 343/1991, 962/1993, 212/1995, 704/1995, I no. 81/1998, 64/2000, 71/2003 (Act accompanying the Budget Act 2003/Part 3, Article 34), 94/2005 and 59/2007. It has been enacted by Parliament: Section 1. (1) The Federal Minister of Finance, acting on behalf of the Republic of Austria (the Federation ), is authorised until December 31, 2013, to assume liabilities in the form of guarantees for credits (bond issues, loans, credits or other liabilities) raised by the agent of the Federation pursuant to section 5 paragraph Export Guarantees Act, Federal Law Gazette no. 215/1981, as amended, in case the proceeds of such credits are used for a) the full or partial financing of contracts or rights for which the Federation has issued a guarantee under the 1981 Export Guarantees Act, Federal Law Gazette no. 215, or under the 1964 Export Guarantees Act, Federal Law Gazette no. 200, as applicable from time to time, or b) the full or partial financing of contracts or rights which satisfy the statutory requirements of the 1981 Export Guarantees Act, Federal Law Gazette no. 215, as amended, and for which a credit insurer examined by the agent of the Federation has assumed liability, or c) the full or partial financing of contracts or rights which satisfy the statutory requirements of the 1981 Export Guarantees Act, Federal Law Gazette no. 215, as amended and for which Austria Wirtschaftsservice G.m.b.H. has granted a guarantee, or d) the full or partial financing of contracts or rights which satisfy the statutory requirements of the 1981 Export Guarantees Act, Federal Law Gazette no. 215, as amended and for which an international organisation whose creditworthiness is beyond doubt has assumed liability, or e) a temporary investment by the agent of the Federation in the context of the export financing scheme, or f) the payment of obligations of the agent of the Federation, for which guarantees have been granted under this Federal Law. (2) Guarantees are granted a) in favour of creditors of the agent of the Federation for the fulfillment of its liabilities arising from the credits it raised pursuant to paragraph 1; b) in favour of the agent of the Federation for a certain exchange rate between the euro and another currency (exchange rate risk) when fulfilling the obligations arising under credits pursuant to paragraph 1 for the respective period during which the proceeds of the credits are applied for the financing pursuant to paragraph 1 in euro; guarantees under this alinea may be issued for the entire term of the credit or from time to time for parts of the term of the credit. (3) In case of a change of the agent of the Federation, guarantees pursuant to paragraph 2 may also be issued in favour of the former agent of the Federation in order to use the proceeds of new credits to maintain outstanding financings at the time of the change of the agent of the Federation. After the change of the agent of the Federation the former agent of the Federation is obliged to use repayments from financings, including any proceeds from interim investments, for the redemption of credits, proceeds of which were used in the export financing. (4) The Federal Minister of Finance is authorised to reduce by appropriations the financing costs of credits mentioned in paragraph 1 (net proceeds of the credits without interest and costs) in an amount of up to 20 billion euro. (5) In order to allow financing of contracts or rights for which a liability pursuant to section 1 paragraph 1 alinea b or d is available the liability for economic or political risks connected with the respective contract or right must be comparable to the liability pursuant to the 1981 Export Guarantees Act, Federal Law Gazette no. 215/

56 Legal Basis Section 2. (1) The Federal Minister of Finance may only grant guarantees pursuant to section 1 if 1. the outstanding aggregate amount of guarantees does not exceed 40 billion euro at any one time; this ceiling relates to the principal amounts guaranteed without interest and costs; a supplemental amount is to be added for the exchange rate risk in the size of 10 per cent of the euro equivalent of the credit; 2. the individual credit does not exceed the amount (equivalent) of 3.3 billion euro; this ceiling relates to the principal amount guaranteed without interest and costs; a supplemental amount is to be added for the exchange rate risk in the size of 10 per cent of the euro equivalent of the credit; 3. the maturity of the credit pursuant to section 1 does not exceed 40 years; 4. with respect to the raising of a credit, the total costs for the Federation expressed as a percentage, defined as the annualised internal rate of return in arrears in accordance with section 2 paragraph 3, do not amount to more than 15 percentage points above the rate of return on the respective government bond in the secondary market on the day preceding the date of pricing; in this regard such government bond issued in national currency shall be used for comparison, the residual time to maturity of which is closest to the maturity of the credit at the time of issuance; if no government bonds of comparable residual time to maturity exist, government guaranteed bonds or bonds issued by provinces and municipalities, bonds of international issuers or interest rates in the credit and loan markets are used for comparison by analogy and in the sequence as listed above, in each case the applicable reference rate prevailing in the markets ; 5. with respect to a credit for which payments of interest or of principal are determined in a floating manner depending on an applicable reference rate or price prevailing in the markets, the cost components, expressed as an annualised percentage in arrears, defined as commissions, margins and premiums, and computed on the day preceding the date of pricing do not exceed by more than 15 percentage points the reference rate or the reference price prevailing in the markets on the day preceding the date of pricing; 6. with respect to a credit for which payments of principal and of interest are or could be denominated in different currencies, the currency of the interest payments shall be used to evaluate conformity with this Act; 7. in case early termination of the credit is agreed, the total costs expressed as a percentage of such a termination are not exceeded; 8. the currency of the credit is euro or a foreign currency. (2) Amounts in foreign currency shall be counted towards the aforementioned guarantee amounts on the basis of the reference exchange rates published by the European Central Bank on the day of the granting of the guarantee; if no reference exchange rate for the contract currency is published by the European Central Bank, the amount is to be calculated at the exchange rate ascertained in the markets. (3) The internal rate of return is defined as such annual interest rate in arrears which is derived through financial calculus from such discount factor at which all payments stipulated by contract for the term of the credit are discounted to present value at the time of pricing to equal the net proceeds of the credit. Section 3. Claims will arise under guarantees in case, a) the borrower does not fulfill his contractual obligations under a credit; b) the euro equivalent of a credit denominated in a currency other than euro is, by alteration of the exchange rate between such other currency and the euro, at the end of the relevant period, during which the euro equivalent of the credit was applied to financing pursuant to section 1 paragraph 1, higher than the euro equivalent of the credit in such other currency at the commencement of the said period. Section 4. In case the euro equivalent of the currency of the credit guaranteed pursuant to section 1 paragraph 2 alinea b is, at the end of the period therein referred to, higher than at the commencement of the said period, the Federation shall refund the difference to the agent of the Federation; in case the euro equivalent of the currency of the credit transaction at the end of the period referred to therein is lower than at the commencement of the said period, the agent of the Federation shall refund the difference to the Federation. Section 5. (1) Amounts, which are to be refunded by the agent of the Federation pursuant to section 4, shall be credited to a non interest bearing current account of the Federation with the agent of the Federation. (2) In case a claim is made against the Federation under guarantees pursuant to section 1 paragraph 2 alinea b, any credit balance on the account of the Federation pursuant to paragraph 1 shall be used for its payment. In case there is no credit balance, the Federation shall allocate other budget means for these payments. 54

57 Legal Basis (3) As a rule, the credit balance of the Federation pursuant to paragraph 1 shall be used in the export financing scheme of the agent of the Federation. (4) In case the credit balance of the Federation pursuant to paragraph 1 exceeds at December 31 of a calendar year 1 per cent of the ceiling of guarantees pursuant to section 2 paragraph 1 no. 1, the respective exceeding amount shall be remitted to the Federal Treasury until January 20 of the succeeding calendar year. (5) In case a guarantee by the Federation pursuant to section 1 paragraph 2 alinea a has been called, the Federation is entitled to claim from the agent of the Federation not only the debt paid (section 1358 of the General Code of Civil Law (ABGB)) but also all costs which accrued in connection with the payment under the guarantee. Section 6. The Federal Minister of Finance may appoint a Commissioner and a Deputy Commissioner at the agent of the Federation to protect his rights in connection with the granting of guarantees. As far as this Federal Law is concerned, these persons have the right to inspect all books, documents and other records of this company and to take part in all meetings. For the activities of the Commissioner and the Deputy Commissioner the company has to pay an annual fee to be determined by the Federal Minister of Finance, payable to the Federal Treasury. The fee has to be in suitable proportion to the expenditures resulting from such activities. Section 7. A fee is payable for the issue of guarantees. Section 8. The Federal Minister of Finance is entrusted with the implementation of this Federal Law. 55

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59 Oesterreichische Kontrollbank AG This English translation of the authentic German text serves merely information purposes and in case of dispute the German text shall prevail. These OeKB Export Services Annual Reports and Annual Reports are also available on our website. Oesterreichische Kontrollbank Aktiengesellschaft Am Hof 4 and Strauchgasse 3 P.O. Box Vienna, Austria Tel or ext. no. A brochure providing information on the activities of Oesterreichische Kontrollbank AG is published in German and English. Internet: Bank code number: Published by Oesterreichische Kontrollbank AG, Vienna Editor: Controlling, Reporting and Payments/Ingrid Polterauer Layout: Gerald Schuba Corporate Communications +, Vienna Photos: Cover and pages 2, 6-10: Christina Häusler Pages 12 and 13: Economic Chamber Austria (AWO) Registered office: Vienna; Companies Register no. FN b; Commercial Court, Vienna. UID: ATU , DVR: Copies may be ordered from Controlling, Reporting and Payments Tel , Fax [email protected] Printed by Holzhausen Druck & Medien GmbH Holzhausenplatz Vienna, Austria Editorial deadline February 29, 2008 Printed on 100% recycled paper made in Austria.

60 Oesterreichische Kontrollbank AG Am Hof 4, Strauchgasse Vienna, Austria Tel E x p o r t S e r v i c e s