BAKU, Azerbaijan, October 6. Germany may provide support in securing financing through export credits for long-term investment projects that Azerbaijan plans to implement in the areas of infrastructure, energy, and economic diversification, the Deputy Director General of the German Federal Ministry for Economic Affairs and Energy (BMWE), Gerlind Heckmann, said, Trend's correspondent reports.
She made the statement at the German-Azerbaijani Connectivity Conference in Baku on Tuesday
According to her, Germany has implemented reforms aimed at adapting its export credit support system to the realities of modern global value chains, strengthening the competitiveness of German companies and exporters, and increasing the attractiveness of German export credit guarantees for international buyers and financing partners.
“International supply chains are becoming increasingly complex and integrated. At the same time, competition among exporting countries has intensified significantly. Therefore, the modernization package is designed to ensure that German export financing remains a competitive and relevant tool for both exporters and borrowers,” she said.
Gerlind Heckmann noted that two key measures are particularly important within the reform package. One of them is the “Flex & Cover” mechanism.
“Traditionally, eligibility for German export credit guarantees has been closely tied to the share of German components in individual export contracts. However, this approach does not always reflect how companies operating on a global scale function today. Under ‘Flex & Cover,’ we consider a company’s economic activity in Germany in a broader sense. Factors such as employment, investment, and value added are taken into account,” Heckmann emphasized.
According to her, this approach allows German exporters to organize their international supply chains more flexibly while still benefiting from state support for export credits.
“At the same time, domestic buyers also benefit, as the complexity of managing purchases from multiple sources is significantly reduced,” she added.
Another important mechanism, according to the ministry representative, is “Shopping Line Cover.” She explained that this tool allows buyers and lending banks to create a financial structure that can then be used to make purchases from multiple German suppliers.
“For borrowers, this makes procurement more flexible and efficient, especially in the case of large-scale investment programs that require technology, equipment, and services from several German companies rather than from a single exporter,” Heckmann said.
She noted that the main advantage of government support for export credits for international buyers lies not only in the guarantee itself, but also in the long-term financing opportunities it creates.
“Today, many borrowers have access to various sources of financing. However, the more challenging task is securing long-term financing with repayment terms that match the economic life of the investment. This is precisely where financing backed by export credit guarantees can create significant added value,” she emphasized.
According to Heckmann, the financing term in the German export credit system can be up to 15 years, and in some sectors, up to 22 years. These opportunities are combined with attractive financing terms and a predictable repayment schedule.
“For capital-intensive investments, such as renewable energy, infrastructure, transportation, and industrial development, this can be a decisive advantage over market-based financing sources, which offer significantly shorter terms and repayment periods,” Heckmann said.
Citing Türkiye as an example, she noted that German financing,
backed by export credits, had facilitated the implementation of
major investment projects in that country, where long-term funding
is a key requirement.
“The combination of German technology with competitive financing
terms and payment terms suited to the long-term economic
characteristics of infrastructure projects has proven very
attractive to borrowers and project sponsors. Today, we can say
that Türkiye is one of the most important markets in our export
credit guarantee portfolio,” she said.
Heckmann emphasized that Azerbaijan also has similar potential.
“Azerbaijan has ambitious plans in areas such as infrastructure, energy, and economic diversification. Although financing can be obtained from various sources, financing backed by export credit guarantees can serve as a valuable additional tool, offering longer terms, greater financial security, and a financing structure suitable for long-term investment projects,” the German official said.
According to her, the reforms implemented are increasing the flexibility and competitiveness of German exporters, as well as expanding borrowers’ access to German technology and expertise.
“The modernization package is not just about technical changes. The goal is to provide German exporters and their international partners with access to financing structures that are in line with the realities of today’s global economy and to help them turn ambitious investment ideas into concrete, promising, and economically sustainable projects,” Heckmann added.
