Improving the Role of Eximbanks/ECAs in the OIC Member States
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downstream financing and where the ECA fits in this landscape, to establish relations
with the major players or financiers, to trace the country’s value added and finally, to
identify the type of financing facilities to be developed.
o Conduct extensive research to ensure up-to-date knowledge about the needs of
national industries and evolving trade flows in order to design the products and
facilities that best suit the export landscape: It is axiomatic that an ECA that offers
products that match the existing and future needs of its exporting community is most
effective. Before designing products and facilities, it is vital to research: a) the needs and
challenges of exporters and b) the existence products and facilities already being offered
by banks or other financial institutions. Defining the size and nature of the market gap
that exists is a task which should be conducted prior to designing products and facilities.
This type of research will identify areas of focus - whether this is in handling corporate
risk or developing other products that allow commercial banks and credit insurers to
extend products and services to exporters. In doing so, the new facilities will be helpful
in supporting private sector players in the market to better serve their exporter clients.
For example, in an economy which has significant cross-border construction and
engineering opportunities bonding products may be very relevant. Or, for an economy
that sells agricultural products into Europe, accounts receivable insurance may be most
suitable. As needs change and economies transform, so must the ECA’s product mix
evolve to ensure the suite of products and services continue to be appropriate for the
local and global market.
o Consult with the private sector sources of finance and insurance with a view to
maximizing their contribution: Better private sector knowledge of market
opportunities may also help address “market gaps”. Understanding possible alternative
methods/products to address the problem may suggest potential for partnering with the
private sector. If so, consulting with them throughout project design and preparation is
needed in order to develop a structure that will maximize their involvement and best
leverage official resources, as well as meet exporter needs.
o Create links to international partners and players: A national ECA is part of a global
“family” of ECAs, whether linked officially through membership in the Berne Union,
Prague Club or Aman Union, or not. Within this global network, ECAs can find
opportunities to learn from each other and to generate business through information
exchange and specific transaction risk-sharing. Analyzing the work being done by ECAs
around the world – including the objectives, approaches and products and facilities
offered to exporters – is another key lesson for new institutions. By reviewing, and
where applicable, carefully adapting best practices to the particular context in which it
operates, a new ECA may be able to avoid some inherent obstacles that characterize
these institutions. Moreover, joining groups such as the Prague Club (for new ECAs) and
Aman Union (for insurers and reinsurers in OIC member countries) or other
ECA/Eximbank fora will create more opportunities for learning and collaboration.