Improving the Role of Eximbanks/ECAs in the OIC Member States
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It will sometimes be the case that it will not be clear what kind or level of CEO will be required until
the position on the likely size of the organization and the nature and extent of its activities/facilities
have begun to emerge.
However, it is important that the CEO should never be the last person recruited, not least since the
CEO should play an important part in decisions on the final shape/structure of the organization and
should be consulted on the most senior appointments.
It is important to assess and review and clarify any possible/potential conflicts of interest between
the new entity and the Steering Committee and to put in place mechanisms for avoiding these.
d. External Specialist and Professional Assistance.
Since this is a highly technical and complex area, it is important that, at an early stage, professional
and technical expertise and input should be put in place and so available both to the Steering
Committee and to the new entity.
This could be in the form of an external expert consultant and/or seeking the loan of a specialist from
an existing ECA or Eximbank.
What is probably most relevant is an on the spot expert who can access information and incremental
expertise from external sources.
There are various ways of achieving this and possible options should be reviewed at an early stage by
the Steering Committee and the new entity.
e. Insurance Documentation and Loan and Financing Agreements.
The new entity will not be able to operate without its own documentation. Preparation of
documentation is a difficult and time consuming process, so getting started on preparation is urgent.
The Special Assistance provider (see (d) above) should be a very important input in this process.
Obviously, the range and format of documentation required will depend crucially on the extent and
nature of the facilities the entity will provide, e.g. whether these will be insurance or financing or
both.
Help and advice will be available externally from various sources, both from existing and similar
organizations in other countries and from multinational entities like the Aman Union and the Berne
Union/Prague Club. In addition, brokers and some of the larger private insurers are potential sources
of help.
But how best to access and utilize such external help and minimizing work and cost to the new entity
will be a difficult and expert job best carried out by a professional expert of the kind mentioned
above.
Standard loan agreements and financing documentation are important to save time and effort. It is
not cost effective to work with the practice of financing facilities having tailor-made or bespoke
documentation on a case-by-case basis. Apart from all else, standard basic documentation should
reduce the work involved in negotiating documents with local parties.
Local banks – both locally owned and branches of foreign banks - will be a good source of specimen
financing documentation and the central Bank should also be a useful source of expertise and advice.