Browse

You are looking at 1 - 10 of 49 items for :

  • World Economic and Financial Surveys x
  • Export credit x
Clear All
International Monetary Fund

Abstract

This paper focuses mainly on official bilateral and multilateral financing for countries that have rescheduled their debts to official bilateral creditors. In contrast to the approaches taken by private lenders, official creditors have continued to provide new financing on a large scale to countries with debt-servicing difficulties that implement adjustment and reform programs. Financial support bas been provided through a wide variety of instruments and channels. For the low-income rescheduling countries as a group, total financial assistance has been about as large as these countries' own export earnings in every year since 1986. The recent trends in official financing have important ramifications for developing countries. Access to external financing from official sources is likely to remain high for those countries whose adjustment and reform efforts provide assurances that resources will be used efficiently. Conversely, countries with uneven records of policy implementation (particularly as regards payments arrears) are likely to find difficulty in attracting financial support.

International Monetary Fund

Abstract

To better understand agencies’ cover policy response in various situations, the staff discussed with the 11 agencies and their export credit authorities the evolution of cover policies toward a sample of 14 developing countries. That sample was selected for both geographical distribution and the representation of countries in a wide range of circumstances regarding their external position and their relations with official creditors.

International Monetary Fund

Abstract

In this and past Fund staff papers on officially supported export credits, quantitative analysis of developments has been based on two statistical sources. One source is the Berne Union Country Reporting Quarterly Return, commonly referred to as the “40 Countries Report,” in which the member agencies of the Berne Union report their outstanding commitments, unrecovered claims, and outstanding offers for each of 40 countries. These data are not available to the public and have been provided to the staff on a confidential basis for its use in analyzing various aggregates for individual debtor countries.

International Monetary Fund

Abstract

The Arrangement on Guidelines for Officially Supported Export Credits (the Consensus Arrangement) is adhered to by 22 members of the OECD Group on Export Credits and Credit Guarantees. The Arrangement has been in place since April 1978 and replaced a less elaborate understanding that had been in effect among a more limited number of OECD countries since early 1976. The Arrangement is intended to limit competitive subsidization of export financing and sets, inter alia, minimum allowable interest rates and maximum repayment terms for officially financed or subsidized export credits of two years and more.

International Monetary Fund

Abstract

—the terms agreed upon in a Paris Club rescheduling meeting are embodied in an Agreed Minute. The Minute normally specifies the coverage of debt service payments to be consolidated, the cutoff date, the consolidation period, the proportion of payments to be rescheduled, the provisions regarding the down payment, and the repayment schedule for both the rescheduled and deferred debt. Delegates to the meeting undertake to recommend to their governments the incorporation of these terms in the bilateral agreements that implement the rescheduling.

International Monetary Fund

Abstract

After increasing more than threefold between 1990 and 1996, total net resource flows to developing countries have since halved, despite a brief recovery in 1999 (Figure 1.1).1, 2 Resource flows from private sources, comprising foreign direct investment (FDI), portfolio investment, bank lending, and international bond issuance by developing countries, dominated these developments. Private flows accounted for nearly 80 percent of the total net resource flows to these countries in 1996 and have remained around 60–70 percent since 1997. However, the overall dominance of private flows masked a vast difference in the composition of flows across income groups in developing countries. While private flows contributed the bulk of the resource flows to middle-income and transition economies, they accounted for less than 10 percent of net financing to low-income countries in the last two years. These countries, particularly the heavily indebted poor countries (HIPCs), have relied primarily on official development finance (ODF), absorbing about half of the net official development assistance (ODA) flows to developing countries (Figure 1.2).

Mr. Jian-Ye Wang, Mr. Yo Kikuchi, Mr. Sidhartha Choudhury, and Mr. Mario Mansilla

Abstract

Official export credit agencies (ECAs), a key pillar of the international financial architecture in the second half of the twentieth century, financed a significant share of exports from industrialized countries and provided larger debt financing for developing countries than either multilateral or bilateral creditors. Since the early 1990s, however, the world has changed dramatically. As noted in a conference in 2000 on the role of the U.S. Export-Import Bank in the twenty-first century, private credit insurance companies have “increasingly occupied the market” while “government-insured export business tends to account for a shrinking share of total exports in the major exporting countries.”1 Indeed, globalization, fueled by privatization and trade and capital liberalization, has significantly altered the landscape of international trade finance in recent years.2 Yet there are more ECAs than ever before, as developing countries launch agencies of their own.

International Monetary Fund

Abstract

Over 90 percent of world trade is conducted on the basis of cash or short-term credit, with the remainder supported by medium- and long-term credit and other means of financing. Trade financing therefore is an important component of external financing for developing countries. Export credits supported by official export credit agencies (ECAs) are a key element of nonconcessional financing from bilateral sources to developing countries and economies in transition (Box 2.1).7 The Berne Union of ECAs accounted for more than 16 percent of the total indebtedness of these countries and almost half of their indebtedness to official creditors in 2001.8

Mr. Jian-Ye Wang, Mr. Yo Kikuchi, Mr. Sidhartha Choudhury, and Mr. Mario Mansilla

Abstract

Official export credit agencies were established originally to promote national exports in situations where the private sector was reluctant to do so due to high political and commercial risks. Because their support for exporters also gives importers access to finance (through buyer or supplier credit), and because most agencies also provide insurance for outward direct investment, these institutions have played a significant role in financing for developing countries. However, official export credit agencies are not a homogenous group. Their key mandates and the institutional arrangements for providing official export credit support are summarized in Boxes 2.1 and 2.2. The first box also presents background information on the trade finance market, including key trade finance providers besides official export credit agencies.

Mr. Jian-Ye Wang, Mr. Yo Kikuchi, Mr. Sidhartha Choudhury, and Mr. Mario Mansilla

Abstract

The decisions of the OECD governments to further reduce subsidies and to downsize government-supported businesses in the early 1990s were key factors in setting in motion the retreat of official agencies as suppliers of short-term export credits in industrial countries. Both national and international policies have also had a direct impact on the level, destination, and sectoral allocation of officially supported export credits. The subsequent rise of the private sector represents a fundamental force reshaping the landscape of international trade finance, with long-term implications for official agencies.