Improving the Role of Eximbanks/ECAs in the OIC Member States
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It may be somewhat misleading to compare an ECA’s business volumes directly to a country’s
exports and then suggest that there is a direct correlation or attribution that can be drawn
between the two indicators. For example, not all ECA business is truly incremental; some export
transactions will occur even without ECA participation. Notwithstanding, an ECA’s share of
national exports is frequently used as “rule of thumb” to give an indication of the importance of
the ECA to the national economy.
For those OIC ECAs whose business volumes are published, the average business volumes to
exports is 5.48%, which is on par with the world average for OECD ECAs. Taking out Turk EXIM
(which includes a significant lending portfolio) and the private insurer, LCI, which includes all of
its private insurance business, the ratio of Business Volumes/Exports falls to 1.84%, which is low
by international standards.
4.8. Cooperation with Other Entities
OIC ECAs are generally well positioned with the international community for co-operation on
transactions and capacity building. Most ECAs have established sound working relations with
other ECAs, domestic and international commercial banks, insurance/reinsurance companies,
and regionally and global development banks. Some ECAs are also members of associations and
networks such as Berne Union, the Prague Club and Aman Union, which promote exchange of
information and technical assistance among members.
Entities such as Export Development Bank of Egypt work closely with a network of
correspondent banks based in Europe and North Africa, while Jordan’s JLGC has also signed loan
guarantee agreements with banks and private companies. Algeria’s CAGEX, Lebanese Credit
Insurer and Tunisia’s COTUNACE all partner with regional and international insurance
companies such as COFACE (France), CAGEX (Algeria) and HBOR (Croatia).
Many OIC ECAs have signed cooperation Memorandum of Understandings (MOUs) with other
ECAs, DFIs and MDBs including Germany’s DFI KfW, Islamic Development Bank, African
Development Bank and Asian Development Bank.
A number of ECAs also avail themselves of domestic networks, such as national development
banks and trade promotion agencies, as a way to access clients. Examples are CAGEX of Algeria,
Nigeria EXIM, JLGC, SMAEX of Morocco, KazExportGarant and ECIE, which is part of Dubai’s
export promotion bureau.
The role played by ICIEC is vitally important to the OIC ECAs. For ICIEC, supporting and helping
the development of the credit insurance industry in OIC member countries is part of its mandate.
Towards that end, it has developed products designed to support new ECAs such as the
Facultative Reinsurance Agreement which offers 85% reinsurance cover in addition to
underwriting support. ECIE of the Emirates, JLGC of Jordan and NAIFE of Sudan have all
benefited from this arrangement. Other ECAs, such COTUNACE, CAGEX, and Turk Exim have
quota sharing agreements (QSTs) with ICIEC. Many other ECAs benefit from ICIEC’s capacity and
expertise in MT project finance to do facultative reinsurance. Prominent among these are SEP,
MEXIM, COTUNACE, EGFI of Iran. An interesting and unique case in this regard is when ICIEC
assisted COTUNACE to insure a MT project finance offered by a Tunisian company to the
Government of Rwanda. ICIEC was able to bring in DHAMAN and Africa Trade Insurance (ATI) to
participate in the underwriting process and share in covering the risk.