OTTAWA, Sept. 30 /CNW Telbec/ - Export Development Canada (EDC) announced today that Scotiabank is the first of the big five banks to join EDC's expanded Export Guarantee Program (EGP).
Scotiabank will use the EGP as a guarantee for applicable loans advanced to their exporting clients for up to 90 per cent of the loan total, and up to 100 per cent on Canadian direct investment abroad (CDIA).
"Scotiabank is very active abroad, and its solid understanding of mitigating risk in international markets is a natural fit with EDC's export guarantee program," said Eric Siegel, President and CEO of EDC. "EDC's guarantees can further assist Scotiabank in helping clients that are either expanding or breaking into export markets."
"Scotiabank is pleased to be a part of the expanded EGP, which will enable us to provide our clients with additional financing solutions and increase our flexibility to accommodate their individual needs," said Alberta G. Cefis, Executive Vice-President & Head, Global Transaction Banking, Scotiabank.
For loans up to and including $500,000, EDC recently increased the coverage to banks from 75 per cent to 90 per cent. For loans between $500,000 and $10 million, EDC now covers up to 75 per cent compared to 50 per cent previously.
Acknowledging the growing importance of CDIA to increase a company's trade capacity, EDC can now provide up to 100 per cent coverage for qualified financing related to such investments when they are part of a larger package of bank credit.
In 2008, 314 small and medium enterprises benefited from EDC's export guarantee products, up from 172 in 2007. The overall guarantee coverage, used by 22 Canadian financial institutions, was valued at over $323 million, an increase from $220 million in 2007.
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With close to 69,000 employees, Scotiabank Group and its affiliates serve approximately 12.8 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With more than $485 billion in assets (as at July 31, 2009), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com
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 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been named one of Canada's Top 100 Employers for eight consecutive years.
SOURCE Export Development Canada
For further information: For further information: Media contact: Phil Taylor, Export Development Canada, Tel: (613) 598-2904, Blackberry: email@example.com; Or Robyn Harper, Scotiabank, Public Affairs, (416) 933-1093, firstname.lastname@example.org