Improving the Role of Eximbanks/ECAs in the OIC Member States
7
insurers, the OIC countries reportedly insured USD21.9 billion in 20135, which is less than 1% of
total exports from these countries.
The role of ECAs is especially important during market downturns, such as occurred during the
Global Financial Crisis. The Berne Union data in Figure 2 illustrates the importance of ECAs in
addressing the market disruptions that occurred during the period 2008-2009, during which
time claims on non-payment of trade credit jumped significantly.
Figure 2: Berne Union Claims Paid on Non-Payment of Trade Credit (in Million USD)
Source: Berne Union
1.3 Rationale for Establishing an ECA
There are essentially two main motivations for a government to establish an ECA: one proactive
and one reactive. The proactive drivers for establishing ECAs are related to a desire by a
government to promote the growth and/or expansion of the export sector or specific exports,
which are in turn expected to strengthen an economy and improve growth prospects by
developing its trade capabilities. The reactive drivers include a policy desire to respond to
market gaps. These are presented as follows:
A. Diversify a country’s export base and export markets: The need to diversify a
country’s export base, which may be restricted to one sector or product, is a key driver
5 Aman Union, 2013 Performance Report. Note that financings are not included in the Aman Union figures
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009 2010 2011 2012 2013
702 783 1,007 1,128
2,418
1,508 1,323 1,827 1,913
2,115 1,913 1,245 1,082
3,004
1,836 2,457
2,608 2,440
USD Million
ST MLT