8 Official Funding Sources: Export Credit Agencies

2019 ◽  
Author(s):  
Borisoff Alexander ◽  
Pendleton Andrew ◽  
Blundell Lewis
Keyword(s):  
Natural Resources ◽  
Financial Institutions ◽  
Government Policy ◽  
Pivotal Role ◽  
Export Credit ◽  
Infrastructure Projects ◽  
Market Participants ◽  
Funding Sources ◽  
Border Trade ◽  
Export Credit Agencies

This chapter focuses on export credit agencies (ECAs). ECAs are government-backed suppliers of financing and other credit support. As enablers of government policy and ‘soft diplomacy’, they possess a variety of tools that are not available to commercial financial institutions alone. Among the most important of these tools is the ability to offer financial terms that are more competitive than those available in the market. ECAs are able to provide financial liquidity in challenging times, making them attractive market participants in all types of credit environments. ECAs are an essential source of capital for the financing of cross-border trade, including for the financing of major infrastructure projects worldwide. In the coming years ECAs will likely continue to play a pivotal role in the financing of global energy, natural resources and infrastructure projects.

9 Official Funding Sources: Export Credit Agencies and Multilateral Development Banks

2015 ◽  
Author(s):  
Borisoff Alexander ◽  
Compton Andrew
Keyword(s):  
Project Finance ◽  
Export Credit ◽  
Working Capital ◽  
Multilateral Development Banks ◽  
Funding Sources ◽  
Loan Guarantees ◽  
Development Banks ◽  
Export Credits ◽  
Risk Insurance ◽  
Export Credit Agencies

This chapter provides an overview of official funding sources available in the project finance arena, including from export credit agencies, multilateral development banks, and governmental and quasi-governmental entities. The forepart of the chapter describes export credit agencies and multilateral development banks generally, as well as hybrid-type official funding sources. The second part of the chapter explores the types of funding these entities provide, including loans, loan guarantees, political risk insurance, working capital facilities, equity investments, and bond guarantees. The chapter concludes by assessing regulatory regimes applicable to export credit agencies, including the voluntary OECD Consensus or Arrangement on Export Credits that seeks to promote transparency among export credit agencies, and other common issues and considerations to explore when seeking funding by way of such an official funding source.

3 Sources of Funding

2015 ◽  
Author(s):  
Ransome Clive ◽  
Dunnett Geoffrey
Keyword(s):  
Commercial Banks ◽  
Project Finance ◽  
Export Credit ◽  
Market Conditions ◽  
Market Participants ◽  
Contractual Relationships ◽  
Different Types ◽  
The Cost ◽  
Key Participants ◽  
Export Credit Agencies

This chapter provides an overview of the various sources of funding, the cost of funding, access to the debt markets, and the considerations of key participants in current market conditions. As the project finance market evolves, new funders and funding techniques emerge. This chapter explores how contractual relationships between the equity participants and debt providers are structured and how risk is allocated between different types of funders. It discusses the role that sponsors, export credit agencies, multilateral agencies, development finance institutions, and commercial banks play in the project finance market. Finally, the chapter considers the role and use of letters of intent, term sheets, commitment letters, and mandate letters, and analyses the key documentation issues of relevance to the market participants.

9 Official Funding Sources: Multilateral and Development Finance Agencies

2019 ◽  
Author(s):  
Dewar John ◽  
Ofori-Quaah Felicia Hanson
Keyword(s):  
International Development ◽  
Global Financial Crisis ◽  
Fundamental Difference ◽  
Export Credit ◽  
Funding Sources ◽  
Global Commerce ◽  
Development Institutions ◽  
Development Goals ◽  
The Global Financial Crisis ◽  
Export Credit Agencies

This chapter discusses multilateral development and finance agencies. The primary goal of these agencies is to support economic and social development goals in economically challenged countries or regions. While these institutions have always played a major role in facilitating cross-border investment, upheavals in the global markets arising from the global financial crisis and the resulting constriction of available capital to project developers from traditional commercial funding sources, served to enhance the importance of multilateral and development institutions in global commerce and international development. The fundamental difference between export credit agencies and multilaterals is that the former exist to promote or facilitate exports from the relevant nation, whilst the latter is focused on development.

Can Export Credit Agencies Help Fund Capital Intensive Projects in Emerging Industrializing Economies? Lessons and Applicability in Vietnam

2013 ◽  
pp. 5-21
Author(s):  
Trung Quang Dinh ◽  
Hilmar Þór Hilmarsson
Keyword(s):  
Interest Rates ◽  
Emerging Market ◽  
Critical Role ◽  
Value Added ◽  
Export Credit ◽  
Cross Border ◽  
Border Trade ◽  
Credit Guarantees ◽  
Export Credit Agencies ◽  
Capital Intensive

Export growth is now seen by most governments as a key to economic growth and recent growth in emerging East Asia has been export led. The so-called Export Credit Agencies (ECAs) played a critical role in cushioning the downturn in cross border trade to emerging market economies during the global economic and financial crisis that hit in the fall of 2008. This crisis is considered by many to be one of the greatest economic challenges since the Great Depression of the 1930s. In addition to facilitating cross border trade during times of crisis ECAs can also help companies in emerging countries access long term funding and potentially at a lower interest rate than they could locally. This can help companies modernize their processing lines, especially those engaged in capital intensive activities, and enable emerging economies in transition to increase the value added of their industries and boost export earnings. This article discusses the role of ECAs in facilitating cross border trade to emerging markets as well as the economic rationale for the existence of such agencies. It also demonstrates how selected risk mitigation instruments of ECAs, namely: (i) buyer credit guarantee, (ii) supplier credit guarantees and (iii) export loans have been applied in practice. Finally, real cases are presented that highlight how companies have used the service of ECAs, for example, to obtain better terms, including larger loan allocation, and longer term loans at lower interest rates.

The Legal Form of Financial Institutions as a Way to Protect the Rights of Financial Market Participants

2021 ◽  
Vol 10 (1-2) ◽  
pp. 29-46
Author(s):  
Valentina I. Borisova ◽  
Igor V. Borisov ◽  
Farkhad S. Karagussov
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Scientific Development ◽  
Legal Form ◽  
Market Participants ◽  
Legal Structure ◽  
Legal Forms ◽  
High Level ◽  
Legal Mechanism ◽  
Legal Entities

Abstract Financial institutions are the centre of economic and legal interests of participants of the financial services market, which is itself characterised by a high level of conflict of interests of its participants. The purpose of the article is the scientific development of the legal structure of organisational and legal forms of financial institutions, in the market of financial services, as a legal mechanism for reconciling the economic and legal interests of the main participants of this market. The features of basic and modified legal forms of legal entities are elaborated in this article. It is determined that financial institutions are established and operate in ‘modified’ legal forms. Such forms emerge due to the supplementation of the structure of the main elements of the basic legal forms of legal entities. This refers to additional functional legal means that reflect special requirements for the relevant types of legal entities, depending on the economic and legal interests of their founders/participants.

scholarly journals The ‘No-Alternative Scenario’ in the Alternative Analysis of NEPA

2019 ◽  
Vol 8 (3) ◽  
pp. 11
Author(s):  
Kalpana Murari
Keyword(s):  
Sustainable Development ◽  
Natural Resources ◽  
Impact Assessment ◽  
Multinational Corporations ◽  
Developing Nations ◽  
Third Party ◽  
Low Carbon ◽  
Infrastructure Projects ◽  
Alternative Analysis ◽  
The Public

Environmental impact assessment report is the primary document required to assess sustainable issues of any business/commercial activity, but it is most often overlooked for serious anomalies in its presentation to the public. It is most often incomplete and there is a need to review the standards of impact assessment procedures that help preserve environmental integrity among developing nations. The absence of sanctions for improper assessment of environmental, social and economic impacts of commercial activities, including extraction of natural resources by domestic and multinational corporations undermines sustainable development across the globe. The procedures in place to study various impacts of a business activity that enable access to genuine, verifiable and actionable information by the public require review and oversight by a third-party institution. The standardization of procedures and universal harmonization of enforcement and compliance regulations by nations has to become a topic for debate at various academic levels to gain importance. Essentially, EIA reports in large infrastructure projects serve as a blueprint for low carbon economies. Developing nations ignore vital provisions relating to the listing and analysis of alternatives in their attempt to meet developmental goals. Environmental protection is to maintain the ecological integrity of habitats and ecosystems. EIA reports, ultimately, aim at conserving and replenishing the reserves of natural resources. Judicial law has played an important role in highlighting the importance of alternatives in EIA. It is therefore important as how developing nations use the provision for the alternative analysis within their environmental laws. This paper will discuss EIA under the auspices of International law relating it to Sustainable Development. It shall emphasize the significance of providing alternatives in large infrastructure projects that have enviro-social impacts including transboundary effects and how the use of “no-action” alternative helps preserve and conserve a nation’s resources, reducing negative impacts Keywords: NEPA, CEQ, Impact Assessment, Alternatives Assessment, Alternatives Analysis, no-action alternative, hydropower, mega dams.

scholarly journals Towards Net Zero export credit: current approaches and next steps

2021 ◽  
Author(s):  
Thomas Hale ◽  
Andreas Klasen ◽  
Norman Ebner ◽  
Bianca Krämer ◽  
Anastasia Kantzelis
Keyword(s):  
Business Models ◽  
Global Climate ◽  
Export Credit ◽  
Public And Private ◽  
Climate Targets ◽  
Net Zero ◽  
The Many ◽  
The One ◽  
Investment Portfolios ◽  
Export Credit Agencies

As the world economy rapidly decarbonises to meet global climate goals, the export credit sector must keep pace. Countries representing over two-thirds of global GDP have now set net zero targets, as have hundreds of private financial institutions. Public and private initiatives are now working to develop new standards and methodologies for shifting investment portfolios to decarbonisation pathways based on science. However, export credit agencies (ECAs) are only at the beginning stages of this seismic transformation. On the one hand, the net zero transition creates risks to existing business models and clients for the many ECAs, while on the other, it creates a significant opportunity for ECAs to refocus their support to help countries and trade partners meet their climate targets. ECAs can best take advantage of this transition, and minimise its risks, by setting net zero targets and adopting credible plans to decarbonise their portfolios. Collaboration across the sector can be a powerful tool for advancing this goal.

Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?

2013 ◽  
Vol 14 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Andreas Dombret ◽  
André Ebner
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Integration ◽  
Incentive Compatibility ◽  
Financial Intermediaries ◽  
Entry And Exit ◽  
Short Term ◽  
Market Participants ◽  
Cross Border ◽  
Crucial Feature

Abstract Financial integration and globalization have acted as a major stimulus in the development of large, internationally operating banks, which not only provide cross-border services but also have a local presence. While these banks are themselves drivers of economic integration, they can pose serious threats to financial stability. Their size, interconnectedness and importance as providers of specific services mean that financial institutions can be too-systemic-to-fail (TSTF). Since the entry and exit of market participants is a crucial feature of well-functioning markets, the absence of any credible possibility of failure leads to serious distortions. This analysis gives an overview of the TSTF problem and discusses the challenges to be faced in establishing credible resolution regimes.

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