Improving the Role of Eximbanks/ECAs in the OIC Member States
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A research study was undertaken surveying exporters, banks and insurance players on what
were the market gaps, looking at what exporters needed to expand their exporting business and
to be internationally competitive against their counterparts from other countries which had ECA
backing. The conclusion of the report was that there were specific unmet needs that an ECA
could usefully fill.
Following that study, the New Zealand Government made a policy commitment to establish an
ECA as an office within the Treasury, setting out a series of specific operating and institutional
parameters. It was also decided that, rather than building up underwriting expertise in-house,
the government would outsource the running of the scheme to international experts. Treasury
would manage the overall portfolio and decide on cases, with input from a Technical Advisory
Committee, but the actual risk assessment would be done by the outsourced party. The Danish
ECA (EKF) initially won the tender to undertake this business and after three years, when it was
retendered, the Swedish ECA (EKN) took on the role. Meanwhile, New Zealand Trade and
Enterprise (NZTE), the Government’s international business development agency, was the “front
office”/sales arm for the new facility.
The New Zealand Export Credit Office took over the full
responsibility of the management and functioning of the ECA in 2007 but still works closely with
EKN. Its mandate is to help grow New Zealand exports by providing specialized financial
guarantees and services that complement those available in the private sector and which assist
New Zealand exporters to:
 manage risk;
 access trade finance; and
 secure international contracts.
NZECO is currently located in the Treasury and obligations to third parties are guaranteed by the
New Zealand government through the Minister of Finance. A letter of delegation from the
Minister of Finance delegates the Secretary to the Treasury with the responsibility of operating
the NZECO. The Secretary provides final approval of all export credit guarantees. The
Government's maximum liability under the scheme is NZD 740 million (USD 607 million).
NZECO receives policy direction from the government and is seen as a major contributor to meet
the government’s goal of increasing exports as a percentage of GDP from 30% to 40% by 2025,
and to its Business Growth Agenda designed to create the conditions that assist businesses
connect to international opportunities and become more productive and internationally
competitive.
NZECO works closely with other New Zealand Government and international agencies, as well as
the private sector partners, to leverage their knowledge and resources in support of New
Zealand companies. NZECO's products are intended to extend the capacity of facilities in the
private sector.
NZECO has demonstrated a role for its services and products. Since its establishment, NZECO has
issued a total 440 policies to 116 exporters, supporting NZD1.8 billion (USD 1.475 billion) worth
of export transactions into 74 countries.
As an organization set up in response to specific complaints from exporters, NZECO regularly
undertakes customer surveys
in order to keep abreast of changes in the market and stay relevant.