Improving the Role of Eximbanks/ECAs in the OIC Member States
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Analysis:
A very clear message from the Central Bank of Bahrain is that they consider ICIEC (of which
Bahrain is a member/shareholder) as their ECA 7 and this may be the main reason why the
export credit product locally has not been an important priority or focus. The attitude of the
Central Bank makes a lot of sense since ICIEC provides insurance cover for major industries (i.e.
oil & gas, and metals) and the largest exporters and banks in the country. The key export sectors
are destination is Saudi, so there is logic to this approach.
However, other countries in the region have more actively set up ECAs seeking to shift their
export profile, so further consideration of developing a Bahraini export credit program would be
useful. The program run by the Bahrain Development Bank is more suitable to cater for the
needs of SMEs and so if diversification is a priority for the government, this warrants a renewed
focus.
3.4.3 Egypt
Egypt has two entities providing export credit facilities: Export Development Bank of Egypt and
Export Credit Guarantee Corporation of Egypt, which is a majority owned subsidiary of EDBE.
Export Development Bank of Egypt
Description:
EDBE was established as an Eximbank and commenced operations in 1985. As a Joint Stock
Company, EDBE has a minimum 75% public sector ownership and the top two shareholders are
public sector banks owned by the government. In the event of financial difficulties, the
government is expected to intervene to ensure the sustainability of the Bank. The Bank’s Board
is comprised of 13 members, representing both public and private shareholders. The Bank has
15 subsidiaries and 25 branches around the country. It is listed on the stock exchange.
In terms of facilities offered, EDBE provides a range of typical commercial bank trade finance
products including: receivables and Inventory Finance, Import financing (documentary credit or
collection), Export Finance (pre- and post-shipment), as well as medium and long term loans to
exporters, import substitution projects and special financing scheme for SME exporters. Over the
years, the Bank has expanded its scope in terms of sectors of focus (such as agriculture) and
types of financing it provides (such as financing of working capital). It does not offer any
contingent liability products such as guarantees or insurance, nor any Islamic finance
instruments.
Given the nature of the Bank’s business, it has a strong network of correspondent banks, which
includes banks in the UK, Switzerland, Germany, Japan, Norway, Saudi Arabia and USA among
others.
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