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Top performance for EFIC in face of poor market

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Despite ongoing volatility in financial markets around the world, the Export Finance and Insurance Corporation (EFIC) performed strongly last financial year. The Australian Government’s export credit agency showed a profit on its Commercial Account of  $30.2 million, reflecting continuing strength. EFIC provided over 100 facilities worth nearly $600 million, supporting exports and overseas investments in 2010-11: a year of global financial unpredictability, a high Australian dollar, and an appetite for debt to finance large-scale projects. EFIC also faced an increased demand for SME products against an uneven recovery in the global economy. The SME team in particular had another strong year of growth with 90 facilities signed with SMEs worth $136.7 million, across a wide range of sectors. This includes a strong uptake of the foreign exchange facility guarantee provided through Travelex, and the Producer Offset loan, both introduced in May 2010. Over 45 percent of EFIC’s signings in dollar value were delivered to the construction industry, followed by ship building and repair services at under 18 percent. 16 working capital guarantees worth $54.5 million had also been provided by EFIC by 30 June 2011 after ANZ and Westpac signed agreements to support exporters financing requirements in 2010. "We are continuing to adapt our products and approaches in this environment to help Australian firms win new export contracts and protect their offshore investments," said CEO and Managing Director Angus Armour, adding that with the environment remaining turbulent, many exporters will still need the services of EFIC to assist in doing business overseas. "Markets remain uncertain and credit conditions overseas will remain tight in the year ahead. As a result, we anticipate increased demand for EFIC to support Australian exporters."

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