Improving the Role of Eximbanks/ECAs in the OIC Member States
27
credit insurance and investment insurance. Critical factors in working well with the private
sector in the credit risk area are the number of private insurers active in the national market,
the level of engagement between the ECA and the private insurers and the types of risks that
the ECA is prepared to consider.
15. ECA actively encourages participation of private players
This deals with the ECA’s areas of focus in relation to where private-sector banks and
insurers may be, or wish to be, active. It also deals with the incentives provided by the ECA
to encourage private-sector participation.
16. There is no displacing/impeding of the private sector
This focuses on the degree to which ECA activities have the effect of encouraging or
displacing or competing with the private sector sources of finance and insurance.
It is important to recognize the crucial inter-relationships/inter-dependence between the four
common parameters and among the key dimensions. Trying to effect positive changes on one
dimension (or parameter) could have unexpected short- and long-term consequences for other
dimensions.
Moreover, it is not enough to be very strong in one area or parameter. One stronger area does not
necessarily offset a weaker area. The healthiest systems are those that find a balance between all
four parameters. For a strong and healthy export credit system, the harmony or balance among
the four common parameters, and the four key dimensions with each parameter, is as important
(if not more important) than the absolute strength of individual dimensions or parameters.
In order to assess properly the overall health of an export credit system, primary research would
be required that includes detailed interviews with ECAs themselves, as well as government
authorities, multinational and local banks and exporters. For the purposes of this study, two OIC
countries (Turkey and Malaysia) have been selected to be assessed within this framework. While
the scope of work for this study did not contemplate in-country visits to undertake such rigorous
primary research, the framework has been applied based on telephone interviews with these
two ECAs. The results of this analysis are provided in Annex C.
On the basis of the assessments made using the research and available information (noting that
no other stakeholders but the ECA were interviewed), both countries have relatively healthy and
robust export credit systems. The main challenges in Turkey relate to how the government
interacts with the ECA, particularly with respect to its guarantee of political risks and, for
Malaysia, the focus going forward should be the role the ECA plays in helping involve and
develop the private sector sources of finance and insurance.
The following three sections present the 26 institutions within OIC member countries. This
analysis is supplemented by Annex D which sets out the datasheets for each entity. It should be
noted that for many countries, it is difficult to draw any meaningful conclusions about the entity
given lack of publicly-available data. In some instances, data is not available as the corporate
form is a privately owned company. In many other cases, despite being government-owned, there
is an absence of published annual reports or audited financial statements. The Aman Union
provides some annual performance reporting, from which certain figures can be drawn, but this
only covers a portion of OIC ECAs and only insurance activities.