Role Of Export Credit Agencies Research Articles

Non-resource exports of developed and developing countries: Major support measures and challenges of the current stage

Aim. The presented study aims to form an objective idea of factors affecting the system of support for non-resource exports and ensuring the validity of decisions.Tasks. The authors summarize the main ways of supporting non-resource exports of developed and developing countries; analyze changes in the international regulation of export activities associated with the formation of national support systems for commodity producers; systematize major opportunities for supporting export credits.Methods. This study analyzes the practices of export credit agencies in various countries in the context of opportunities provided to foreign trade participants; identifies problem areas typical for the current stage of development of trade relations; draws attention to emerging contradictions in the field of support for national non-resources exports by countries.Results. It is shown that the participants of the Arrangement on Officially Supported Export Credits (OECD) operate in an extremely aggressive, yet increasingly unmanageable environment. To secure export contracts, both the domestic industry and the export credit agencies of the OECD member countries should enhance competitiveness by following the rules of the trading system. Otherwise, they risk upsetting the balance on the playing field and hinder sustainable development.Conclusions. The participants of the OECD Arrangement face a difficult tactical choice: either to take a strong position in support of competition both within the country and within international organizations (WTO, OECD), or to develop their own export credit programs that are not related to the OECD Arrangement. The first option, although preferable in terms of ensuring economic efficiency, long-term competitiveness, and sustainable development, may lead to a reduced role of export credit agencies.

COVID-19 pandemic: The world's export credit agencies' response to the economic downturn

Subject. This article discusses the role of export credit agencies (ECA) in dealing with the crisis caused by the COVID-19 pandemic. Objectives. The article aims to assess the effectiveness of the application of ECA's comprehensive credit and insurance tools to support foreign trade operators in the context of the COVID-19 pandemic. Methods. For the study, we used the comparative, statistical, and formal and logical methods. Results. The article describes the support measures taken by the ECA aimed at increasing the flexibility of export credit insurance conditions, increasing the availability of financing in response to the economic shock associated with the pandemic. It identifies the most relevant trends in the development of ECA during the crisis period and the key role of ECA as part of the State foreign economic policy. Conclusions. The crisis caused by the coronavirus pandemic reveals the need to strengthen ECA cooperation with private insurance companies within the framework of public-private partnerships. There is also a need to accelerate the development of ECA in the field of digitalization, which will contribute to improving service for customers, creating popular insurance products, as well as increasing the operational performance of the ECA themselves.

The Case for Regional Cooperation in Trade and Investment Finance for Asia

AbstractThis article reviews the evolution of the role of export credit agencies (ECAs) and their impact on trade and investment. We argue that regional cooperation in Asia would foster regulation and facilitate access to trade and investment finance. Regional cooperation could take the form of regulation aiming at levelling the playing field; or it could go further, with the creation of a multilateral agency that would leverage the industry’s best practices and a good credit standing to facilitate access to trade and investment finance across Asia, particularly in the countries where availability is limited. We review the lessons learnt from existing multilateral ECAs and national ECAs in Asia and argue that these should be carefully considered when designing a new regional ECA.

Can Export Credit Agencies Help Fund Capital Intensive Projects in Emerging Industrializing Economies? Lessons and Applicability in Vietnam

Export growth is now seen by most governments as a key to economic growth and recent growth in emerging East Asia has been export led. The so-called Export Credit Agencies (ECAs) played a critical role in cushioning the downturn in cross border trade to emerging market economies during the global economic and financial crisis that hit in the fall of 2008. This crisis is considered by many to be one of the greatest economic challenges since the Great Depression of the 1930s. In addition to facilitating cross border trade during times of crisis ECAs can also help companies in emerging countries access long term funding and potentially at a lower interest rate than they could locally. This can help companies modernize their processing lines, especially those engaged in capital intensive activities, and enable emerging economies in transition to increase the value added of their industries and boost export earnings. This article discusses the role of ECAs in facilitating cross border trade to emerging markets as well as the economic rationale for the existence of such agencies. It also demonstrates how selected risk mitigation instruments of ECAs, namely: (i) buyer credit guarantee, (ii) supplier credit guarantees and (iii) export loans have been applied in practice. Finally, real cases are presented that highlight how companies have used the service of ECAs, for example, to obtain better terms, including larger loan allocation, and longer term loans at lower interest rates.

The Role of Export Credit Agencies in a Fast‐growing BRIC Economy

‘The role of ECAs is indispensable in fostering export growth across nations.’ Geetha Muralidhar examines the impact of export credit agencies in facilitating growth and export trade in the fast-growing BRIC economies, focusing on their role in India specifically.

Export Financing in Brazil: Challenges and Opportunities

Pedro Carrico, head of Country Risk and International Relations at SBCE, argues that it is the role of export credit agencies, like SBCE, to ‘assist export growth in a more competitive world’.

Foreign Investment Insurance and EU Law

This contribution discusses the EU law ramifications on Member State investment guarantee systems. It examines firstly the legal framework on investment guarantee schemes in EU Member States, noting in particular the role of export credit agencies (ECAs), as well as the different types of insurance available, before exploring the EU competence over foreign investment insurance. After arguing that the EU has exclusive competence over insurance covering FDI under Article 207 TFEU, the issue of harmonisation of rules on foreign investment insurance is addressed, concentrating on the need and the desirability of such harmonisation, as well as its potential scope and the challenges that the drafting of appropriate harmonised rules present. Finally, the effects of EU law on international agreements relating to investment guarantee are examined focusing on the participation of the EU and its Member States in MIGA and the existence and content of subrogation clauses in Member State BITs and EU investment agreements. In conclusion, it is argued that the EU’s exclusive competence over FDI requires a reassessment of national rules on foreign investment insurance, which may offer an excellent opportunity to reconsider the substance of foreign investment insurance provisions.

The Role of Export Credit Agencies in Global Trade

The Role of Export Credit Agencies in Global Trade

Recent changes in business practices of the export insurance and financing agencies

This paper analyzes the traditional main role of Export Credit Agencies (ECAs) which have from their founding been a tool for governments to support national companies in their export business and enhance the economy's capacity to penetrate foreign markets. Since 1919 when the first agency was established in the United Kingdom with the objective of guaranteeing exports to markets not covered by private insurers, ECAs have been the main promoters of national politics for providing coverage against commercial and non-commercial risks of export transactions. In the last years, in the light of enhanced institutional and legal framework, global trade and financial integration, structural transformation in production organization, and the increasing role of the private sector, significant changes in the model of traditional export credit support have occurred.

Role of export credit agencies in PFI/PPP projects

The paper presents the results of an investigation into the role of export credit agencies (ECAs) in international private-finance initiative/public–private partnership (PFI/PPP) projects. The research was based on an assessment of published literature and a study of relevant official reports. The use of PFI/PPP procurement to deliver essential infrastructure continues to grow worldwide. In developing countries, funding raised locally through taxation, the money markets and official development assistance is inadequate to meet the required needs. PFI/PPP projects with foreign private participation provide a vital contribution to the acceleration of economic growth and provision of essential services and infrastructure. It is demonstrated in this paper that ECAs play a number of key multiple roles in international PFI/PPP projects. First, the role of ECAs can be as lenders. ECA loans can be offered to exporters, investors or directly to the special-purpose vehicle. ECAs also play the role of insurers/guarantors. ECAs are diversified in country risks and therefore best placed to cover political and non-commercial risks. They can provide cover for non-commercial risks which include: currency inconvertibility and transfer restrictions, expropriation, war and civil disturbance or breach of contract, etc. The professional advisory role includes arranging project finance and a disputes resolution service. ECAs play key multiple roles in the realisation of international PFI/PPP projects. They are clearly central to efficient risk management in such projects and for attracting foreign direct investment into infrastructure in developing countries.

Briefing: The Commission for Africa, Gleneagles, Brussels and beyond

The report of the Commission for Africa argued that aid was effective and that more aid could be absorbed, and it looked at culture, governance, peace and security as well as health, education and economic growth. It surprised some when talking about governance by looking not solely at corruption in Africa but also at the role played by the West in bribe paying and money laundering including the role of export credit agencies. It looked in some detail at human capacity and the importance of higher education and went against the fashion of talking about human development alone, to consider the importance of infrastructure. It drew from various schools of thought to craft an eclectic' and pragmatic analysis and makes some significant recommendations, along with predictable ones such as increasing aid volumes and spending on diseases such as AIDS.2

Export Credit Agencies, Trade Finance, and South East Asia

This paper looks at the causes of the reduction in trade finance in South East Asian countries post-1997 with a particular focus on the role of export credit agencies. It concludes that while such agencies did not cause or prolong the problem they did not contribute significantly to a solution. The paper also suggests some implications from events in South East Asia for both traditional debt-relief mechanisms and for the architecture of the international financial system.

Export Credit Agencies, Trade Finance and South East Asia

This paper looks at the causes of the reduction in trade finance in South East Asian countries post-1997, with a particular focus on the role of export credit agencies. It concludes that while such agencies did not cause or prolong the problem, they did not contribute significantly to a solution. The paper also suggests some implications from events in South East Asia for both traditional debt-relief mechanisms and for the architecture of the international financial system.