Improving the Role of Eximbanks/ECAs in the OIC Member States
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3. Strong government backing: The government of Indonesia serves as the lender of last
resort for Indonesia Exim during times of financial stress. This has a positive impact on
the Bank’s clients who feel protected and are likely to engage in the export sector as a
result.
4. Sound underwriting processes: Asei Re partners with overseas credit information
agencies such as Coface InfoAsia and Sinotrust to ensure sound due diligence is
conducted on all its clients. This improves the overall quality of the entity’s portfolio.
5.2.5. Lebanon
Export Credit Services Delivered Exclusively by the Private Sector
Lebanon’s trade deficit is one of the most pronounced with exports in 2013 amounting to over
1/5 of imports, which can be attributed to its service-based economy, specifically tourism. The
small export base is dominated by jewels and precious stones, as well as machinery.
Lebanon has a strong, active and very liquid banking sector with over 100 well-capitalized local
banks that have experience in trade. These banks have good relations with international banks
such as Citibank, HSBC, Commerzbank and JP Morgan Chase who support their trade business.
The local banks have also successfully expanded their presence in the Middle East region. Aside
from these entities, there are also state-owned banks and foreign-owned banks that are active in
the sector. The country also has a competitive insurance sector with over 50 players of varying
sizes, which predominantly focus on providing general insurance services.
Lebanese Credit Insurer (LCI), a private insurance company, is the only player addressing this
export market. LCI was established in 2001 by private entities including Atradius, local and
regional insurance companies, and private holding companies, without any government
involvement. It is the first independent specialized insurance company of its kind in Lebanon.
With the vision to become ‘a driving force in trade facilitation in the MENA region,’ LCI is focused
on supporting SMEs in engaging in in domestic and cross-border trade. It owes its success to
providing a critical product that has been lacking in the Lebanese market – domestic and export
trade credit insurance protecting businesses against the risk of non-payment of their customers.
LCI currently has an outstanding exposure of over USD 600 million.
Another success factor is LCI’s holistic support to businesses through its subsidiary LCI Services.
Aside from its standard products, it also provides complementary products that may be required
by businesses. This includes debt collection assistance whereby LCI takes responsibility for a
client’s bad debt, thus saving the client valuable time and resources and directly engaging in
negotiations with the client’s non-paying buyer. The company’s provision of credit management
and credit protection services is benefiting its clients by improving their financial sustainability.
Taking advantage of its expertise in the trade credit insurance cycle, LCI disseminates know-how
in areas such as marketing, underwriting, claims, reinsurance and IT, thereby contributing to
strengthening the insurance sector and improving understanding of insurance products and
services among stakeholders.