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EKN and ABGF, Brazil’s export credit agency, sign agreement to strengthen cooperation
Memorandum of Understanding marks first step toward joint risk-sharing operations and brings Sweden and Brazil closer in support of exports.
EKN (Exportkreditnämnden), ABGF — the Brazilian Agency for Guarantee Funds and Guarantees — and the Brazilian Ministry of Development, Industry, Foreign Trade and Services (MDIC) signed a Memorandum of Understanding (MoU) in Brazil on Thursday (8).
The MoU marks the first step toward concrete actions to support Swedish and Brazilian companies. The institutions have already begun discussions on a reinsurance agreement that would allow ABGF and EKN to share the risks associated with export credit transactions.
The agreement provides for cooperation in commercial transactions involving the supply of Swedish and Brazilian goods and services. In such cases, EKN and ABGF may share information and, where applicable, cooperate in the assessment, approval, negotiation and structuring of transactions. In practice, this expands opportunities for Swedish and Brazilian companies to work together on projects in third markets, either as main exporters or as suppliers, with the support of both agencies. EKN and ABGF may also jointly support exports from Brazil by Swedish companies established in the country, strengthening Swedish investment and local production.
“Brazil is an important market for Swedish industry, and several Swedish companies have a strong presence in the country. This agreement strengthens our cooperation and will make it easier for companies from both countries to pursue opportunities together, both bilaterally and in third markets, says EKN Director General Åke Nordlander.
According to Maíra Madrid, President of ABGF, “ABGF has been making steady progress in building partnerships with other export credit agencies. Each new agreement expands the options available to Brazilian companies to facilitate sales on better terms and in different markets. With EKN, we are taking another important step in this direction.”
The agreement also strengthens the relationship between Sweden and Brazil, which has a long history of industrial and technological cooperation.
Cooperation agreements between export credit agencies are an established practice in international markets and contribute to sound and sustainable transactions.
Facts
About EKN
The Swedish export credit agency (EKN) is a government agency that supports Swedish exports and the internationalisation of Swedish industry. EKN offers exporting companies and banks guarantees for payment and financing, together with advice on business structures and risk management. These services provide an additional level of confidence, enhance competitiveness and more opportunities for successful export transactions.
About ABGF
ABGF - The Brazilian Agency for Guarantee Funds and Guarantees (ABGF) is a federal public company responsible for managing guarantee funds and structuring guarantee instruments that support public policies and expand access to credit and investment in Brazil. Linked to the Ministry of Finance, ABGF manages Brazil's Export Credit Insurance program (SCE) in partnership with the Ministry of Development, Industry, Foreign Trade and Services (MDIC) and works in cooperation with government entities, financial institutions, and private-sector stakeholders to reduce risks, strengthen strategic transactions, and promote Brazil’s economic and social development.
