The Role of Export Credit Agencies in Trade Financing

A characteristic feature of the modern global economy is the deepening economic interdependence and increasingly closer business-to-business trade relations. The growth of international trade has been significantly supported by transaction financing mechanisms. Extensive use of traditional as well as innovative trade finance instruments, both long and short-term ones, was one of the reasons why world trade experienced a rather rapid expansion in the first decade of the 21st century. Export credit agencies have played a meaningful role in the financing international transactions. The aim of this monograph is to assess the operations of export credit agencies in the face of changes occurring in the international market.

List of abbreviations 7 Preface 9 Chapter I. Theoretical foundations of trade finance 11 1.1. Introduction 11 1.2. Trade finance and international trade growth 11 1.3. Financing export/import transactions 15 1.3.1. Trade finance products 18 1.3.2. Trade finance optimisation in international trade 23 1.4. New solutions in transaction financing: supply chain finance 29 1.4.1. Characteristics and role of supply chain finance in transaction financing 30 1.4.2. Growth of supply chain finance market 36 Chapter II. Organisational and functional structure of export credit agencies (ECAs) 41 2.1. Introduction 41 2.2. Organisational structure of ECAs 42 2.3. Programmes offered by export credit agencies 44 2.4. Harmonisation of the rules governing the official support to export credits 54 2.4.1. International debate 54 2.4.2. European Union’s role in working out homogenous terms for granting export credits 56 2.4.3. OECD role in harmonising competition conditions for officially supported export credits 61 Chapter III. Global assessment of export credit agencies performance 77 3.1. Introduction 77 3.2. Global development of export credit agencies 77 3.3. Export credit agencies goals in the context of adopted organisational and functional solutions 83 3.4. Competitiveness of export credit agencies 85 Conclusion 97 Bibliography 99 List of tables 105 List of figures 107 Authors’ Biography 109