Improving the Role of Eximbanks/ECAs in the OIC Member States

between entities and their respective governments can generally be viewed as a continuum. This

continuum is illustrated and further discussed below.

Figure 6: Policy Relationship with Government

Source: Author

Direct adoption of government policy as an institutional mandate signals a strong government-

ECA relationship. This is evident in the majority of entities including those in Egypt, Morocco,

Oman, Qatar, Saudi Arabia, UAE, Albania and Iran. A few also are also indirectly influenced by

government objectives and establish their strategic priorities to address these government goals.

These entities include Nigeria’s NEXIM, Turk EXIM and Kazakhstan’s KazExportGarant. A weaker

relationship is manifested in an entity’s ability to establish an institutional policy focus

independently of their respective governments. The Maghreb ECAs and Jordan’s Loan Guarantee

Corporation are examples if this. Lebanon’s LCI as a private company has no government policy

involvement.

4.5

Business Models of OIC ECAs

Among the OIC ECAs, there are broadly 4 categories of business models. There is no single,

perfect model. Each has been chosen to reflect the unique circumstances within the country.

Full service ECA:

This institution provides lending, insurance, and other products –

conventional and Islamic - under one roof. Turk Exim, Malaysia EXIM, Indonesia EXIM,

Saudi Export Program, Sudan’s NAIFE and Nigeria EXIM could be classified in this

category. In many of the full service ECAs, the insurance business is given less attention

than the lending business which will tend to earn more profit from Treasury activities.

For example, in the case of MEXIM, it could be argued that short-term export credit

insurance has been somewhat marginalized after the absorption of MECIB – the

independent export credit insurance agency. However, Turk Exim shows that a proper

balance can be struck between the finance and insurance functions of an ECA.

Insurance only ECA:

This category of entity provides on contingent liability products

such as insurance or guarantees and do not direct lend. Examples of this type of ECA

include Oman, Senegal, Morocco, Tunisia, Algeria, Jordan, Uzbekistan, Kazakhstan, UAE,

Qatar and Bangladesh. Some of the insurance ECAs, such as Uzbekinvest and ASEI of

Indonesia offer other lines of insurance than export credit and investment insurance.

Adoption of

government

policy

Weak Relationship

Strong Relationship

Independent of

government

policy

Influenced by

government

policy