Prague Economic Papers 2021, 30(2):156-170 | DOI: 10.18267/j.pep.762

Problems with Long-term Financial Sustainability of Export Credit Agencies

Mikuláš Pýcha ORCID...a
a Prague University of Economics and Business, Faculty of Finance and Accounting, Prague, Czech Republic

This paper focuses on national support for export and examines whether, following the OECD arrangement, long-term financial sustainability is assured without sustained fiscal help. Rules on permitted state support in this area are stated by the OECD Consensus, which is meant to guarantee a level playing field for all exporters, to encourage competition among exporters based on the quality and prices of goods, and at the same time, not distort the free market. The main objective is that every export credit agency (ECA) should be self-sustainable with no need for state subsidies. However, this may not be achieved. This research proves inadequacy of minimum premium rates (MPR) due to insured interest. This issue arises mainly from the application of MPRs to the principal value of the insured loan with no correspondence to the insured interest amount. As many ECAs are publicly owned, all systematic losses must be covered by state budgets, which is against OECD agreements and is not allowed.

Klíčová slova: State support, export credit, minimum premium rates, OECD consensus, export credit agency
JEL classification: G22, G29, H81

Vloženo: 21. leden 2020; Revidováno: 24. červen 2020; Přijato: 21. září 2020; Zveřejněno online: 9. prosinec 2020; Zveřejněno: 14. duben 2021  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Pýcha, M. (2021). Problems with Long-term Financial Sustainability of Export Credit Agencies. Prague Economic Papers, 30(2), 156-170. doi: 10.18267/j.pep.762
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Auboin, M., Engemann, M. (2012). Testing the Trade Credit and Trade Link: Evidence from Data on Export Credit Insurance. SSRN Electronic Journal, https://doi.org/10.2139/ssrn.2169862 Přejít k původnímu zdroji...
    2. Baas, D. (2010). Approaches and Challenges to Political Risk Assessment: The View from Export Development Canada. Risk Management, 12(2), 135-162, https://doi.org/10.1057/rm.2009.19 Přejít k původnímu zdroji...
    3. Chauffour, J.-P., Saborowski, C., Soylemezoglu, A. I. (2010). Trade Finance in Crisis: Should Developing Countries Establish Export Credit Agencies? Policy Research Working Papers, https://doi.org/10.1596/1813-9450-5166 Přejít k původnímu zdroji...
    4. De Ricolfis, F. (2011). A Long History in Facing Challenges, https://doi.org/10.1787/9789264111745-22-en Přejít k původnímu zdroji...
    5. Fons, J. S. (1994). Using Default Rates to Model the Term Structure of Credit Risk. Financial Analysts Journal, 50(5), 25-32, https://doi.org/10.2469/faj.v50.n5.25 Přejít k původnímu zdroji...
    6. Gianturco, D.E. (2001). Export Credit Agencies: The Unsung Giants of International Trade and Finance. Westport, CT.: Quorum Books. ISBN 978-1567204292.
    7. Hull, J., Predescu, M., White, A. (2005). Bond Prices, Default Probabilities and Risk Premiums. The Journal of Credit Risk, 1(2), 53-60, https://doi.org/10.21314/jcr.2005.007 Přejít k původnímu zdroji...
    8. Ilias, S., Fergusson, I. F., Morrison, W. M., et al. (2012). Boosting U.S. Exports: Selected Issues for Congress. Congressional Research Service. Scopus.
    9. Janda, K., Michalíková, E., Skuhrovec, J. (2012). Credit Support for Export: Evidence from the Czech Republic. CERGE-EI. Working Paper Series No. 461, https://doi.org/10.2139/ssrn.2061868 Přejít k původnímu zdroji...
    10. Ključnikov, A., Popesko, B. (2017). Export and its Financing in The SME Segment. Case Study from Slovakia. Journal of Competitiveness, 9(1), 20-35, https://doi.org/10.7441/joc.2017.01.02 Přejít k původnímu zdroji...
    11. OECD (2019). Arrangement on Officially Supported Export Credit. Paris: Organisation for Economic Co-operation and Development. Available at: http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?doclanguage=en&cote=tad/pg(2019)1
    12. Pycha, M. (2017). The Existence of EGAP in Relation of Market and State Failures (Costs and Benefits of EGAP for Czech Republic) (Diploma Thesis). Prague: University of Economics in Prague.
    13. Rienstra-Munnicha, P., Selassie H., Turvey, C. (2013). An Analysis of Welfare Effects of Export Credit Insurance and Guarantees on the Exporting and Importing Countries, International Journal of Business & Economics Perspectives, 8(2).
    14. Rung Quang, D., Hilmar Þór, H. (2014). How Can ECAs Help Solve Funding Challenges for Capital Intensive Projects in Emerging Market Economies? Applied Economics: Systematic Research, 8(1), 79-95, https://doi.org/10.7220/aesr.1822.7996.2014.8.1.5 Přejít k původnímu zdroji...
    15. Saunders, A., Allen, L. (2010). Credit Risk Management in and Out of the Financial Crisis: New Approaches to Value at Risk and Other Paradigms. 3rd eds., https://doi.org/10.1002/9781118267981 Přejít k původnímu zdroji...
    16. Sorge, M. (2004). The Nature of Credit Risk in Project Finance. BIS Quarterly Review.
    17. US EXIM Bank (2017). Competitiveness Report 2017. Washington DC. Available at: https://www.exim.gov/sites/default/files/reports/competitiveness_reports/2017/REVISED_EXIM-CompetitivenessReport_508C.pdf
    18. Wright, C. (2011). Export Credit Agencies and Global Energy: Promoting National Exports in a Changing World. Global Policy, 2(1), 133-143, https://doi.org/10.1111/j.1758-5899.2011.00132.x Přejít k původnímu zdroji...

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah