ECAs

Export credit agencies (ECAs) are government-backed financial institutions that provide financing and guarantees to support exporters and reduce the commercial and political risks of cross-border trade. They offer instruments such as direct lending, loan guarantees, and export credit insurance to help exporters secure financing on favorable terms, often for projects in higher-risk markets. ECAs typically work with domestic banks to channel funding and risk, and may participate in multi-party financing arrangements for large projects.

ECAs operate within a policy framework established by national governments and are commonly organized as government agencies or government-owned corporations. Their activities are typically aligned with public objectives, such as promoting domestic industry, safeguarding jobs, or advancing strategic sectors. In many countries, international guidelines—most notably the OECD Arrangement on Officially Supported Export Credits—set rules on loan maturities, interest rates, and state aid compliance to minimize distortions of trade.

While ECAs aim to support national export interests, they have faced criticism for potentially distorting competition through subsidies, encouraging risk-taking in some markets, or underwriting projects with environmental or social risks. Proponents argue that ECAs can stabilize trade and help domestic firms compete on a level playing field, especially in capital-intensive sectors such as infrastructure, energy, and manufacturing.

Notable examples include the Export-Import Bank of the United States (EXIM) and the United Kingdom’s UK Export Finance (UKEF). Across countries, ECAs vary in structure and scope but commonly function as instruments of public policy to facilitate international trade and investment while adhering to international guidelines and domestic regulatory oversight.