Export Credit Agency

What is an Export Credit Agency (ECA)?

An export credit agency (ECA) is a public or private institution that helps domestic companies sell goods and services overseas by reducing the financial risks of international trade. ECAs provide financing, guarantees, and insurance that private lenders may be unwilling to offer—especially for transactions involving higher political, commercial, or country risk.

ECAs can be:
* Government agencies
* Quasi‑government bodies
* Commercial financial institutions with official support

Main services and offerings

ECAs support exporters and the lenders that finance them through a range of products:
* Direct loans or government‑backed financing to foreign buyers
* Loan guarantees and credit guarantees to reduce lenders’ exposure
* Export credit insurance to protect exporters against nonpayment by foreign buyers
* Interest‑rate support, refinancing, and other forms of credit enhancement
* Participation in large international project financing and structured trade deals

Why ECAs matter

• Fill financing gaps when private lenders pull back due to perceived risk.
• Enable exporters to enter or compete in volatile or emerging markets.
• Support national industrial and trade strategies by promoting exports and protecting jobs.
• Facilitate large-scale infrastructure and project exports that require long tenors and government backing.

Export credit insurance (ECI)

Export credit insurance protects exporters against the risk that foreign buyers will fail to pay (for commercial or political reasons). It can cover short‑term trade (e.g., goods shipped on open account) or long‑term credits used in project and capital goods exports.

Example: The U.S. Export‑Import Bank (EXIM)

The Export‑Import Bank of the United States (EXIM) is the U.S. federal ECA. It provides loans, guarantees, and insurance backed by the U.S. government to help American companies compete for overseas sales and support U.S. jobs.

Global context

ECAs play an active role in international trade finance. As of 2023, there were 39 official ECAs listed by international organizations. The Organisation for Economic Co‑operation and Development (OECD) maintains a roster of official ECAs and coordinates rules governing officially supported export credits.

Key takeaways

• ECAs reduce the financial and political risks of exporting by offering loans, guarantees, and insurance.
• They can be government entities, quasi‑government bodies, or commercial institutions with official backing.
• ECAs enable exporters to enter riskier markets and support national trade and industrial objectives.
• For an official list of ECAs and policy guidance, consult the OECD’s resources.