EDC is committed to continually pursuing new ways to improve so we can better serve our financial institution partners. We also do it for you, so you can continue to build your existing client relationships and forge new ones as a trusted source of expert advice. Check here for the latest updates on resources for you and your clients as we refine and add to our suite of solutions.
The pandemic continues to impact and reshape Canadian companies with both challenges and opportunities. In the months ahead, we believe the EDC BCAP Guarantee will continue to play an important role in supporting these businesses as they adjust and recover. To facilitate this, the program will continue to be available to support new qualifying clients and/or transactions until December 31, 2021.The deadline under the EDC BCAP Guarantee program was previously scheduled for June 30, 2021. This extension includes both the EDC BCAP Guarantee and EDC BCAP Guarantee Mid-Market programs.
EDC’s Climate Change Policy outlines its proactive and mandatory reporting approach for businesses aligned to the recommendations outlined by the Task Force on Climate-Related Financial Disclosures (TCFD).
Please let your O&G clients know about our tips and tools for creating a Climate Change Report including other helpful resources to help them meet EDC’s expectations for TCFD-aligned reporting.
Like the fluctuating economy, EDC’s solutions will continue to evolve. As of December 2020, some of the temporary measures have become permanent. These permanent measures now reflect EDC’s business moving forward and have been incorporated into our existing processes and standards.
For complete details on what’s currently available to support your clients, please check out the temporary measure section of our Financial Institution Resource Hub.
You may have noticed that the section of our website directed at our FI partners has changed. That’s because we want you to have the best resources possible to serve and enrich your client relationships. It was also important to us that we revamp this section to create a clearer, more user-friendly environment for you to access the tools you need for your business to flourish. We hope you like what you see—there will be much more to come!
Like the fluctuating economy, EDC’s solutions will continue to evolve. To help you meet your clients’ need for increased flexibility, access to cash flow, and tailored solutions while they navigate the pandemic’s impact on their business, EDC made short-term modifications to several of our products (March 2020). Some of those product modifications have now been withdrawn (as of September 30, 2020) and other measures have been extended (until December 31, 2020 or December 31, 2021).
We are adjusting the guarantee based on FI partners’ feedback and will share a revised legal agreement with FI head office teams in August, 2020. Here are the details:
Given the financial impacts of the current pandemic on Canadian businesses and their cash flow, as well as the fact that EDC’s expanded mandate allows us to offer solutions to all Canadian business owners (not just exporters), we want to remind you how our Foreign Exchange Facility Guarantee (FXG) can help minimize the notional risk associated with your clients’ foreign exchange facilities
To better serve our customers, we reviewed the processes we have in place for EDC’s Account Performance Security Guarantee (APSG). We determined that, as of June 2020, we will no longer renew facilities that haven’t been used in the last 12 months, unless a specific upcoming need has been identified. All impacted clients and FI partners will be informed by email. Each email will have only two recipients: the account manager at your FI who has a client with this product, and the client who uses it. If you want to talk about any transactions or have any concerns, contact the relevant EDC account manager.
When your customer wants more from an operating line of credit that uses the Export Guarantee Program (EGP)—such as an increase in the facility limit, or changes to the borrowing base terms that increase availability—but the request is more than your financial institution is comfortable with because of additional risk caused by the client’s increase in exports, EDC can help. If your customer has a BB- credit rating or better, we’ll consider guaranteeing up to 75% of the total facility, as long as the benefit to the customer (like a greater facility limit or adjusted terms) is clear.
Please note that due to a significant increase in volume, we have temporarily adjusted our standard EGP credit adjudication timing for EGP approvals to 15 business days for new requests and 20 business days for renewals.