Improving the Role of Eximbanks/ECAs in the OIC Member States
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fund’s management shifted to the Albanian Investment Development Agency (AIDA) which was
established in 2011. The agency’s objectives include attracting foreign investment, increasing the
competitiveness of the Albanian economy by supporting SMEs, particularly in providing
assistance on exports of goods and services and promoting innovation.
The purpose of the fund was to reduce the credit risk of the exporter, covering 85% of the
working capital requirements for a minimal cost (0.25%). ECGF was designed to improve
commercial lending to enterprises by providing collateral required by lending institutions to
increase access to finance for enterprises so they can expand exports and increase their
competitiveness in global markets. This Fund can be accessed by both Albanian SMEs seeking to
enlarge their export markets, and foreign SMEs searching for local partnerships in the country.
To complement this product offering, AIDA also provides free support through a variety of
services, including market analysis, and networking among others.
AIDA undertakes all policy decisions within ECGF. Under the National Strategy for Development
and Integration 2007-2013, the agency has the mandate of promoting private sector
development and improving the business climate. ECGF is under the purview of AIDA’s Board of
Directors, which is composed of 10 members with six government ministers, four from the
private sector and chaired by the Prime Minister.
Analysis:
In the early 2000s, there had been some desire to consider converting the Albanian Guarantee
Agency into an ECA. However, the World Bank had previously financed the AGA and did not
endorse the proposal.
The possibility has also been raised that, in the long term, the ECGF could become an
independent ECA. However, the ECGF expired in 2013 and has not been renewed. The concept
was under consideration in 2012 by AIDA’s Management Board, but the fund was not
recapitalized or extended.
3.5.2 Bangladesh
Sadharan Bima Corporation Export Credit Guarantee Department (SBC)
Description:
Established in 1973, Sadharan Bima Corporation (SBC) is the only state-owned General
Insurance Corporation operating under the direct control and supervision of the Ministry of
Finance. The initial concept was for SBC to deal with all classes of general insurance & re-
insurance business emanating in Bangladesh. After acting as the sole insurer of general
Insurance until 1984, Bangladesh government allowed private sector firms to enter the market.
SBC is currently the largest insurer in the country, with a market share of over 20% of the total
premium income of the insurance market of Bangladesh.
The main pillar of the SBC is insurance and reinsurance. SBC is entitled to 50% of public sector
business in Bangladesh. SBC operates under the direct control and supervision of the Ministry of
Finance. Its Board of Directors is composed by 7 members from private sector, as well as
members 7 from the government (Ministry of Finance).