Exporting brings foreign currency into the country,
so governments encourage export trade by giving assistance and incentives to exporters.
Companies often borrow money from banks to finance exporting. This money is called export credit.
If guarantee is given to bank by government agency is means the government carries the loss if the foreign buyer does not pay.
It is a kind of insurance cover for the bank and the export company. Another form of government advantages or incentive is tax insurance.
Every company must pay a proportion of its earning to the government in the form of tax.