Export Credit Guarantee

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Export Credit Guarantee

Guarantee from the UK Export Credit Agency.

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.
References in periodicals archive ?
It provides export credit guarantees, gives trade information for exporters and extends short and medium-term loans to Nigerian exporters, among other services designed to boost Nigeria's participation in international trade.
The export credit guarantees provided by Invegos will involve a financial burden, reducing the exporter's risk to 10%.
Generally speaking, export credit guarantees are an assurance to banks or other financial institutions that are willing to lend to exporting firms, providing safeguards to them against losses that could arise from financing international trade transactions.
Such export credit guarantees are an important part of a country's foreign trade promotion.
China Export and Credit Insurance Corporation also agreed to cover export credit guarantees for Chinese companies.
Step-2 payments and agricultural export credit guarantees for cotton were prohibited subsidies under WTO rules and should be withdrawn.
Expand and improve SME access to export credit guarantees
The biggest recipients of export credit guarantees over the years
Finnvera offers export credit guarantees to cover risks related to the
The facility covers letters of credit and export credit guarantees.
They said executives from Air France, British Airways and Lufthansa are to attend a meeting of the AEA in the coming days to discuss the issue, which revolves around cheaper forms of financing available to airlines outside of Europe and the US, called export credit guarantees.
A planned scheme for providing short-term export credit guarantees to Hungarian exporting SMEs and their foreign clients (operated by Magyar Export-Import Bank Zrt) is incompatible with EC Treaty state aid rules because the risks to be covered are too high.

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