Overview

The Export Finance and Insurance Corporation Act 1991 was enacted by the Parliament of Australia to facilitate and support Australian exports through various financial and insurance mechanisms, addressing the need for a robust framework to encourage and safeguard international trade activities. The Act empowers Export Finance Australia, formerly known as the Export Finance and Insurance Corporation, to enter into national interest transactions that support and enhance Australia’s export performance and economic growth. By providing financial assistance and insurance, the Act aims to mitigate risks associated with exporting, thereby encouraging more Australian businesses to engage in international markets. The notification under Section 30(1) serves to inform the public of transactions that align with the policy objectives of the Act, ensuring transparency and compliance with legislative directives.

Scope and Application

The Export Finance and Insurance Corporation Act 1991 applies to Export Finance Australia, also known as the Export Finance and Insurance Corporation. This Act allows the corporation to enter into national interest transactions, which are defined and authorised under Part 5 of the legislation. The Act is applicable to transactions such as loans, export working capital guarantees, bonds, overseas investment insurance, political risk insurance, and credit insurance that are deemed to be in the national interest. The geographic and jurisdictional reach of the Act is national, as it is a Commonwealth Act. The Act applies to the financial support of Australian exporters and investors, and the transactions it governs are intended to facilitate and protect trade and investment activities that are beneficial to the Australian economy. The Act does not specify exclusions, exemptions, or thresholds in the provided extract, but it is noted that subordinate instruments may extend or restrict the application of the Act. The specific transactions mentioned in the gazette notification, such as the AUD loan with a maximum exposure facility limit of $90,000,000, are examples of the types of national interest transactions that the corporation can undertake under this Act.

Key Provisions

The Export Finance and Insurance Corporation Act 1991 (the Act) mandates Export Finance Australia to notify the public of certain transactions that fall under national interest provisions. Section 30(1) requires the notification of these transactions as published in the Gazette, ensuring transparency and accountability. For the period from 1 August 2019 to 31 August 2019, Export Finance Australia notified that it had entered into one national interest transaction, which was a loan. This loan was specified in terms of currency, interest rate, maximum export facility limit, government percentage, and issue date, as outlined in the gazette notification. Importantly, no other transactions such as Export Working Capital Guarantee, Bond, Overseas Investment Insurance, Political Risk Insurance, or Credit Insurance were undertaken during this period. Under the Act, Export Finance Australia must adhere to the terms and conditions set forth in national interest transactions, ensuring they align with the objectives of the Corporation. These transactions are governed under Part 5 of the Act, which permits the Corporation to enter into agreements that support Australia's national economic interests. The obligations imposed on Export Finance Australia include maintaining detailed records of these transactions, ensuring they are in compliance with the Act, and fulfilling any reporting requirements as stipulated. Breach of the provisions under the Act can lead to serious consequences. While the specific offences and penalties are not detailed in the provided text, it is known that non-compliance with the Act can result in both civil and criminal liabilities. Typically, such breaches may lead to fines or other penalties as prescribed by law. The maximum penalties would depend on the severity of the breach and could potentially involve substantial financial penalties, as well as legal actions against the entities involved.