OTTAWA, Feb. 27, 2012 /CNW/ - "Canadian companies grew their exports by
10 per cent in 2011 in a challenging global economic environment.
Contributing to that figure was the international business facilitated
by EDC, which rose by 22 percent as 7787 Canadian companies tapped our
programs," said Stephen Poloz, President and CEO of EDC.
The value of Canadian exports and investments into emerging markets
facilitated by EDC grew by 26 per cent in 2011, according to its
year-end results released today.
Emerging markets now account for a record 30 per cent of trade that EDC
facilitates for Canadian companies and their foreign buyers. Of note,
EDC customers undertook $8.5 billion in business in China, $2.8 billion
in Brazil, $2.5 billion in Mexico, $2.4 billion in India and $1.9
billion in Turkey.
"Adding trade growth in emerging markets to our strong trade with the US
is critical if we are to build Canada's economic resilience and realize
our potential as a trading nation," Mr. Poloz added.
The biggest emerging market growth came from trade with the greater
Asian markets. Exports and investments by Canadian companies to these
markets that were facilitated by EDC grew by nearly 60 per cent in
2011, accounting for 24 per cent of the total trade facilitated by EDC.
"Last year, EDC helped Canadian companies make more investments abroad
than ever before, 40 per cent more transactions over last year alone,"
said Mr. Poloz. "EDC customers used a combination of direct loans and
insurance coverage to help them make these investments, which help them
lower their costs, access large international supply chains and remain
Key Performance and Financial Results
EDC's customers signed 937 financing transactions to a value of $14.6
billion, representing 9 per cent growth over 2010. More than 85 per
cent of these transactions were undertaken by EDC in partnership with
private sector financial institutions.
6,259 Canadian companies insured more than $88 billion in export
contracts with EDC, covering nearly 74,080 buyers in more than 195
foreign markets. This volume represents 24 per cent growth for EDC's
entire insurance program in 2011. EDC earned $234 million in premiums
from all of its insurance programs.
Under EDC's temporary domestic powers, EDC provided $3.1 billion in
commercial solutions in Canada for 285 Canadian exporting companies in
2011; including $2.5 billion in direct financing for 96 companies, more
than $454 million in domestic bonding and $146 million in domestic
credit insurance. This brings the total amount that EDC has provided in
Canada to $9 billion since March 2009, facilitating the global business
needs of 569 Canadian companies.
EDC finished the year with a net income of $645 million, returning to a
more normal profitability level compared to the $1.475 billion net
income reported in 2010. The reduction in net income was the result of
recording provisions and claims-related expenses totaling $372 million
in 2011, as opposed to a $631 million provision reversal and
claims-related expenses of just $1 million in 2010.
EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their
international business. EDC's knowledge and partnerships are used by
more than 7,700 Canadian companies and their global customers in up to
200 markets worldwide each year. EDC is financially self-sustaining and
a recognized leader in financial reporting and economic analysis.
SOURCE Export Development Canada
For further information:
Export Development Canada
Tel: (613) 598-2904