"An export credit agency (known in trade finance as an ECA) or investment insurance agency is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export insurance solutions and guarantees for financing."
The financial instruments and mechanisms used by governments or financial institutions to support and facilitate international trade.
Trade finance: The financing of trade by providing payment and financing mechanisms to enable the trading parties to securely transact their goods or services.
Export documentation: Documentation required for conducting international trade operations, including commercial invoices, packing lists, bills of lading, and certificates of origin.
Incoterms: Terms of international trade that define the rights and obligations of buyers and sellers in relation to the delivery of goods.
Export credit agencies: Public or private entities that provide insurance and other forms of financial support for exporters to mitigate the risks associated with international trade.
Country risk analysis: The process of evaluating the political, economic, and social conditions of a country to determine its potential risks for foreign investors.
Export licensing: The legal process of obtaining a license to export certain goods or technologies that may have national security implications.
Customs compliance: The process of ensuring that goods and services comply with local and international customs regulations.
Foreign exchange risk management: The process of managing the risks associated with fluctuations in exchange rates.
International trade disputes: Disputes that may arise between trading parties as a result of issues such as non-payment, non-performance, or breach of contract.
International trade finance instruments: Financial instruments that can be used to facilitate international trade, such as letters of credit, bank guarantees, and factoring.
Pre-shipment export finance: This type of export finance is provided to the exporter to help finance the production and preparation of goods for export.
Post-shipment export finance: This type of export finance is provided to the exporter after the goods have been shipped and delivered to the buyer. The purpose is to finance the period between goods delivery and receipt of payment from the buyer.
Packing credit export finance: This type of export finance is provided to help finance the packing and transportation of goods for export.
Export working capital finance: This type of export finance is provided to help finance the working capital requirements of an exporter, including raw materials, labor, and overheads.
Export credit insurance: This type of export finance provides insurance coverage to exporters against non-payment risks related to credit sales.
Factoring export finance: This type of export finance allows the exporter to sell its accounts receivables to a factoring company for immediate cash, rather than waiting for the buyer to pay.
Export invoice finance: This type of export finance is provided to the exporter based on the value of its export invoices, which can be used as collateral for financing.
Forfaiting export finance: This type of export finance involves the purchase of a bill of exchange from an exporter by a financial institution, which then assumes responsibility for collecting payment from the buyer.
Export credit guarantees: This is a form of insurance that guarantees to cover the exporter's losses if a buyer fails to pay for the goods.
Export leasing: This type of export finance is provided to the exporter for the lease of equipment or machinery required for the production of goods to be exported.
"The financing can take the form of credits (financial support) or credit insurance and guarantees (pure cover) or both, depending on the mandate the ECA has been given by its government."
"ECAs currently finance or underwrite about US$430 billion of business activity abroad."
"ECAs hold over 25% of these developing countries' US$2.2 trillion debt."
"Direct Lending: This is the simplest structure whereby the loan is conditioned upon the purchase of goods or services from businesses in the organizing country."
"Financial Intermediary Loans: Here, the export–import bank lends funds to a financial intermediary, such as a commercial bank, that in turn loans the funds to the importing entity."
"Under an interest rate equalization, a commercial lender provides a loan to the importing entity at below market interest rates, and in turn receives compensation from the export–import bank for the difference between the below-market rate and the commercial rate."
"Some agencies are government-sponsored, others private, and others a combination of the two."
"ECAs provide US$14 billion of insurance for new foreign direct investment."
"ECAs...provide US$14 billion of insurance for new foreign direct investment, dwarfing all other official sources combined (such as the World Bank and Regional Development Banks, bilateral and multilateral aid, etc.)."
"ECAs...underwrite about US$430 billion of business activity abroad – about US$55 billion of which goes towards project finance in developing countries."
"This does not differ from normal banking activities."
"The financing can take the form of credits (financial support) or credit insurance and guarantees (pure cover) or both, depending on the mandate the ECA has been given by its government."
"Some agencies are government-sponsored, others private, and others a combination of the two."
"To issue export insurance solutions and guarantees for financing."
"ECAs currently finance or underwrite about US$430 billion of business activity abroad – about US$55 billion of which goes towards project finance in developing countries – and provide US$14 billion of insurance for new foreign direct investment, dwarfing all other official sources combined."
"ECAs hold over 25% of these developing countries' US$2.2 trillion debt."
"An export credit agency...acts as an intermediary between national governments and exporters."
"ECAs currently finance or underwrite about US$430 billion of business activity abroad."
"ECAs use three methods to provide...funds to an importing entity."