The Brazilian Guarantees and Fund Managements Agency (ABGF) acts on behalf of the State, represented by the Ministry of Finance’s Secretariat for International Affairs (SAIN). ABGF provides services for export credit insurance activities backed by the Export Guarantee Fund (FGE). FGE is an official instrument available for export credit guarantees.
Export Credit Insurance (ECI) is an important tool to promote competitiveness of Brazilian exports by covering commercial, political and extraordinary risks which could impact national exports of goods and services. The guarantees can be offered either to Small and Medium Enterprises (SME) for short-term credits, or for medium and long term transactions, whenever the repayment period is longer than 2 (two) years.
ABGF currently fulfills both the role of running all services related to ECI (since July 2014) and also plays an important role managing the Infrastructure Guarantee Fund (FGIE). This is a fund of private legal nature which assures coverage for credit risks, performance, cost overrun and, eventually, any event which may trigger breach of contractual obligations.
It guarantees engineering risks to infrastructure projects such as public concession toll-roads, railways, ports or airports – projects listed in the Brazilian Growth Acceleration Program (PAC). Federal and/or State PPP (Public-Private Partnerships) projects are also eligible for FGIE support.
ABGF is also managing the Rural Insurance Stability Fund (FESR) which was created to maintain and ensure rural insurance operations in Brazil and cover the additional risk of disaster inherent in rural activity. The FESR ensures the stability of the Rural Insurance operations in: agriculture, livestock, aquaculture, forests and rural pledge.
By concentrating a suite of guarantee/insurance products under one roof , ABGF is able to capture synergy and scale gains in the provision of official support to Brazilian export and infrastructure projects.