Export Credit Guarantee Department

Export Credit Guarantee

A guarantee of payment made by an export credit agency (ECA). ECAs are government or semi-government agencies that provide guarantees and insurance for exports, and occasionally for imports as well. An export credit guarantee ensures that an exporter receives payment for goods shipped overseas in the event the customer defaults, reducing the risk to the exporter's business and allowing it to keep its prices competitive. The use of export credit guarantees is controversial; critics allege that their existence negatively impacts international development, as developing countries cannot compete with such insured exports. Proponents argue that they enable developing countries to import products they otherwise would not be able to afford.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Export Credit Guarantee Department (ECGD)

the former UK government department which UNDERWRITES (insures) UK EXPORTS sold on CREDIT against nonpayment by foreign customers whether this is due to insolvency of the customer or, for example, the imposition of exchange controls by foreign governments, etc.

Until 1991 the ECGD provided both short-term and long-term export credits. Guarantees covering 90-95% of the loss of sales revenue were available for most exports sold on up to 6 months' credit, while extended cover is provided for certain exports (for example production engineering products) sold on up to 5 years' credit terms. In addition, the ECGD provides long-term cover (normally up to 15 years) for certain FOREIGN INVESTMENT projects against political risk.

In 1991 the provision of short-term export credits was taken over by a private sector concern, NCM. The ECGD itself is was transformed (2001) into a commercial concern outside immediate government control. See FACTORING.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

Export Credit Guarantee Department (ECGD)

a UK government office that provides insurance cover for British exporters against the risk of nonpayment by overseas customers as a means of encouraging exports.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Aquino actually started the power privatization by issuing Executive Order 215 on July 10, 1987, which opened the electricity-generation sector to private investors and paved the way for the entry of IPPs and ECAs, like the Overseas Private Investment Corp., Export Credit Guarantee Department and the Japan Bank for International Cooperation, which ensured financial backing for the IPPs.
In the case of Bangladesh's SBC, authorized capital amounts to US$2.6 million for the whole insurance company while the government's contribution to the capital of its Export Credit Guarantee Department (ECGD) is a slim US$70,000.
Now bosses are talking to several developing countries to offer similar packages, under the ECGD - the Export Credit Guarantee Department.
Part of the funding came through the Export Credit Guarantee Department which provides financial assistance to exporters of UK goods.
This pounds 15m shot in the arm has been backed by the Government's Export Credit Guarantee Department (ECGD), which promotes UK exports by giving businesses access to working capital finance at different points during a deal or a project.
"There needs to be an understanding from the Government, especially the Export Credit Guarantee Department, of this growing problem.
The Chancellor said a further pounds 1bn of support will be offered to companies which export goods, through the Export Credit Guarantee Department.
Encouraged and recommended by the Export Credit Insurance Company of Singapore (ECICS) and by the Export Credit Guarantee Department (ECGD) in England, DATA CONSULT has developed a service that provides credit information or status reports on companies operating in Indonesia.
We picketed the Export Credit Guarantee Department in Cardiff against the Tory government sending arms to Saddam.
Paul Eavis, Director of Saferworld, a London-based post-Cold-War research body, pointed out that the Export Credit Guarantee Department now insists that UK exporters give guarantees that they will not engage in corrupt practices.
Elaghil also has a long-running dispute with the French export-guarantee organisation, COFAS, and caused Yemen to be blacklisted by Britain's Export Credit Guarantee Department (ECGD) until 2001.

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