Export Credit Agencies

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Export Credit Agencies (ECAs) are institutions which act as finance companies for private domestic entities who conduct business abroad. ECAs provide government-backed loans, guarantees and insurance covering both commercial and political risk. Most industrialized nations have at least one ECA, which is usually a public institution.

For instance, a transnational corporation, or investor, will seek insurance from an ECA when selling goods or services to, or investing money in, a foreign country. The premium charged by the ECA depends on the political and economic stability of the foreign country, the buyer's credit profile and the credit terms, among other factors.

The activities of ECAs are considered by some, such as Noam Chomsky, to be a type of welfare for large corporations. ECAs are also criticised for insuring companies against political actions which aim to protect workers' rights, other human rights or the natural environment in the countries where the investment is being made.

Examples

Compagnie française d'assurance pour le commerce extérieur (COFACE, France)
Euler Hermes Kreditversicherungs-AG (Germany)
Export Credits Guarantee Department (ECGD, the official UK ECA)
Export-Import Bank of the United States, the official United States Export Credit Agency
Servizi Assicurativi del Commercio Estero (SACE SpA, Italy)
Export Finance and Insurance Corporation (EFIC, Australia)
World Bank functions of ECAs are often compared to functions of the World Bank
Eximbank Hungary
ASHRA The Israel Export Insurance Corporation
OeKB Austria
CESCE Spain
EDC, Canada
Atradius Netherlands
KUKE Poland
Finnvera Finland
EGAP Czech
EKN Sweden
ERG Switzerland
NEXI Japan
Japan Bank for International Cooperation

External links

[ECA Watch] international NGO campaign on export credit agencies

[Export Finance]

Export Credit

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