EDC — Foreign Exchange Facility Guarantee ### 📋 Eligible Entities - Canadian exporters and businesses engaged in international trade - Small and medium-sized enterprises (SMEs) - Large corporations with export operations - Businesses with foreign currency exposure or international payment obligations - Companies working with financial institutions or FX providers to manage currency risk - Entities operating across multiple currency markets ### 💰 Funding Details - Guarantee Structure: EDC provides a guarantee to replace collateral requirements from financial institutions or FX providers - Collateral Replacement: Eliminates or reduces the need for traditional collateral pledging - No Direct Grant Funds: This is a guarantee facility, not a direct grant or loan disbursement - Frees Up Capital: Releases working capital by reducing collateral demands from lenders/FX providers - Cost: Subject to EDC's guarantee fees (rates vary based on risk assessment and facility terms) - Repayability: Underlying FX facility remains subject to standard financial institution terms and repayment schedules ### 🛠️ Approved Expenses - Foreign exchange hedging and risk management activities - Currency forward contracts and FX derivative instruments - Cross-border payment settlements - International trade financing facilitation - Working capital tied up in collateral requirements (freed through guarantee) ### ⚠️ Conditions & Milestones - Must establish a sound foreign exchange hedging strategy with a qualified financial institution or FX provider - Guarantee is contingent on approval by EDC's underwriting team - Compliance with EDC's risk assessment and eligibility criteria required - Financial institution or FX provider must be approved by EDC - Ongoing monitoring of hedging activities and FX facility usage - Maintenance of business viability and export operations - Documentation of legitimate international trade or FX exposure needs - Subject to EDC's terms and conditions governing guarantee facilities