Improving the Role of Eximbanks/ECAs in the OIC Member States
25
back on how it is performing against these targets/priorities. To be clear, this dimension
does not attempt to place a judgment on the appropriateness of the objectives. In some
countries, for instance, fiscal control and integrity may be strongest priority for the
government, despite the fact that some stakeholders view other potential objectives (e.g.,
promoting the interests of industry) as being more important.
4. The system is regularly reviewed to reflect changes in the private-sector
This area encompasses regular reviews (both formal and informal) of the evolving activities
and facilities of private insurers and banks, as well as of the changing needs of exporters to
ensure that the level of government intervention and involvement is appropriate and useful.
3.2.2 Exporter Focus/Service
For Exporter Focus/Service, the issue is whether exporters are receiving the support they need
to be internationally competitive. In particular, this area examines the extent to which the kind of
facilities, risk appetite and capacity are being made available to exporters for the markets in
which exporters are doing business and at an all-in price which is internationally competitive.
Moreover, the question is considered whether the ECA is being proactive for and on behalf of
exporters and is demonstrating flexibility and innovation, for the purposes of helping make
exporters more competitive.
The key dimensions of health for this area are:
5. Exporters get the coverage they need in the markets they are doing business
This relates both to number of countries for which cover is available from the ECA, as well as
the aggregate exposure limits in countries where the ECA is open for business. In addition, it
considers the “quality” of the cover.
6. The product range meets the needs
This deals with both the range and variety of export credit support available to exporters
from the ECA and other sources, as well as any conditions relating to the availability of such
support. It also includes an examination of the degree to which market gaps are addressed
by ECAs, or whether there are certain gaps left unaddressed compared to other countries.
7. Pricing is risk-related and internationally competitive
This dimension considers how the ECA prices its products, whether loans or insurance. More
medium/long-term transactions, under the OECD Consensus, the pricing of export credit
facilities must be above the minimum agreed levels. However, some ECAs will charge higher
pricing for some transactions to cover capital allocations, beyond the credit risk of the
borrower.
8. ECA is proactive and demonstrates innovation and flexibility
This dimension examines the degree to which the ECA is more demand-driven or more pro-
actively seeking business. In addition, it relates to the speed with which innovative or
responsive services are developed and provided to customers.