Improving the Role of Eximbanks/ECAs in the OIC Member States
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In the case of insurance, the rating of the insurer is of central importance – this is
especially relevant when the insurance facility is being used by the insured party as
security or to obtain financing. It is similarly vital when facilities are being issued to
banks – what will the status be of issued facilities in the context of Basel III and banking
supervision requirements?
6. Develop a business plan: A 5-10 year business plan needs to be drawn up which covers
a number of key areas such as:
a. The facilities which should be offered, broken down clearly between financing
and insurance
b. Estimated demand for each product
c. Pricing and revenue estimates
d. Best guess for bottom line out-turn over a 5-10 period
e. Capital/capitalization requirements
f. Budgetary implications for Government over a 5-10 year period
g. Possible partners, both local and foreign
h. How any new body would fit in with existing public and private entities
7. Establish a detailed implementation plan: Annex D provides detail on an
implementation plan. There are many steps to implementation, but it is important to
note that it is very desirable that, before any public announcements or implementation,
clear decisions are taken on what any new body will do and what its status will be. This
may seem obvious, but premature announcements have happened many times in the
past which have made subsequent actions very much more difficult.
6.5. Conclusions
It is widely accepted that international trade and investment contribute directly to a country’s
economic and social development. ECAs are vital instruments to support these activities by
providing a variety of financial products to support exporters to expand their international
business. The driving force of any such entity is to grow and/or expand the export sector or
specific exports and ultimately contributing to a stronger economy. In doing so, the focus is on
diversification of a country’s export base and supporting new and existing exporters in
developing their businesses. ECAs help exporters by financing their production and working
capital, assuming the non-payment risk of their buyers and financing their buyers. ECAs help
banks by guaranteeing the risks of exporters and their buyers.
ECAs are important public policy tools for the OIC member countries to be able to fulfil
COMCEC’s strategy for building an interdependent Islamic world, helping to expand intra-OIC
trade as well OIC exports more broadly to increase OIC’s share of global trade. This report
examines the role of OIC ECAs can and do play in supporting and expanding exports. As a
knowledge piece, this report seeks to achieve the objectives of COMCEC, i.e. to produce and
disseminate knowledge, to share experiences and best-practices, to develop a common language
and understanding and to approximate policies.
In general OIC ECAs’ contributions to national exports are still below international standards.
Out of the 57 OIC member countries, only 23 have some form of ECAs, Eximbanks or similar
programs. Within this group of entities, there are a range of practices and experiences. While the
region hosts some very strong institutions from which important lessons can be learned, there is