Australia’s Export Finance & Insurance Corporation (EFIC) is selling its short-term export credit insurance business to German credit insurer Gerling NCM, which has been rebranded. The decision to sell the Federal Government statutory authority’s short-term business was announced last week by Trade Minister Mark Vaile.

Ironically, control of Gerling NCM has also just been sold to Swiss Re and Deutsche Bank and the company has been rebranded as Atradius. Rolf Gerling has reduced his dwindling empire’s stake in the company from 55.9% to 3.04%. Atradius is the world’s second-largest credit insurer and holds 25% of the global market.

Mr Vaile said the company “has comprehensively demonstrated its ability to support Australian exporters and improve services to them through their alliance with EFIC since early 2002”.

The deal is subject to Altradius receiving an appropriate licence from the Australian Prudential Regulation Authority, and is expected to be completed at the end of next month.

Mr Vaile said EFIC will continue to offer medium-term structured trade and project finance business for exporters and investors with a range of medium-term insurance, guarantee and financing products in areas not covered by the commercial sector.

The “national interest account” will also continue to be managed by EFIC to support exports and will contain a short-term export credit facility “to safeguard exporters’ interests”.

“The facility will enable the Government to support Australian exporters in significant instances where private sector support is not available, as occurred during the East Asian crisis in 1997/98 when the Government had to step in to assist exporters.”