A
bank in Germany that extends
credit to German and European exporters. It also provides guarantees of payment and
insurance. It is intended to reduce the
risk of European
exports and thereby assist in the
sale of European products abroad. This concept is controversial; critics allege that it negatively impacts international development, since
developing countries cannot compete with such insured exports. Proponents, however, argue that Ausfuhrkredit-Gesellschaft's
services enable developing countries to import products they otherwise would not be able to afford. It was established in 1952 and is owned by 20 German banks. See also:
Export credit agency.