Improving the Role of Eximbanks/ECAs in the OIC Member States
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3. Insurance and Lending in two separate entities: In Egypt and Iran, there are two
agencies – one Eximbank and one export credit insurer – providing facilities. In the case
of Indonesia, while ASEI provides insurance only, Indonesia Eximbank can provide both
insurance and lending products. The Indonesian case indicates that the division of labour
between Exim and the ASEI had not been well defined when the former was created. The
competition between the two seems to be pushing ASEI gradually out of the export
credit insurance business into domestic and general insurance.
4. Pilot ECAs: In Albania and Pakistan, pilot programs were initiated but later discontinued
as a result of a lack of adequate funding, and/or operational success.
4.6 Facilities Offered by OIC ECAs
Depending on their mandate, economic sectors of focus, export destinations and types of buyers,
sophistication of banking systems, as well as their business models and governance structures,
OIC ECAs provide a wide range of facilities, serving a wide range of exporter and bank needs.
As in Figure 3 in Chapter 2, OIC ECAs offer products which are designed to address all parts of
the export transaction cycle. These products are summarized below into six categories,
addressing all phases of export transaction cycle:
4.6.1. Financing facilities
A number of OIC ECAs offer direct funding for pre-production costs, for example to allow the
exporter to purchase capital equipment etc. either domestically or from abroad. Nigeria EXIM,
Turk EXIM and Indonesia EXIM offer both a foreign input facility, as well as a local currency
facility that helps exporters finance capital purchases.
In Phases 2A and B during the pre-shipment phase, some ECAs provide financing for purchase of
raw materials and inputs locally and internationally. This includes Nigeria EXIM, which also has
an inventory finance program, Indonesia EXIM that provides warehouse receipt financing and
Sudan’s NAIFE also offers credit to exports to finance necessary inputs. Some of the lending ECAs
(e.g. Turk EXIM) offer special facilities financing for SME exporters which have streamlined
application processes.
Nigeria EXIM, Indonesia EXIM and EBDI of Iran offer classic trade finance products, which are
typically available from commercial banks. Turk EXIM provides discounting of L/Cs.
In some cases, ECAs will provide receivables finance from existing export sales (i.e. Phase 4
accounts receivables) using these as forms as collateral, for working capital loans for new
production. Many ECAs, including the Nigeria EXIM offer these facilities. In addition, some ECAs
offer factoring or receivables discounting, including a number of ECA insurers, such as ECGE of
Egypt, LCI of Lebanon (through its subsidiary Levant Factors), etc.
A few ECAs offer upstream financing for future exports/exporters, such as Nigeria EXIM’s Start-
Your-Own-Business Programme.
Some ECAs offer refinancing facilities for commercial banks, which in turn provide finance in
support of exports, so as to provide banks with access to liquidity at affordable rates.