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International Cooperation

International cooperation creates a level playing field

The increasing globalization of business leads to ever closer international cooperation. This has not passed by the export credit agencies. In order to create a level playing field in international competition and to harmonize procedures, the export credit agencies cooperate closely in the various committees.

The cooperation between the Export Credit Agencies (ECAs)

The member countries of the OECD have been working since 1978 to reach agreement on common guidelines for minimum standards in payment terms and credit periods (OECD Consensus). Since 1999, country risk categories have also been harmonized in the OECD and minimum premium rates allocated to the various risk categories. This is intended to ensure that competition takes place via pricing and the quality of the goods exported, and not in terms of how much support a state gives to its exporters.

The intensive international cooperation between the ECAs takes place at the multilateral as well as at the bilateral level. The most important groups at OECD level are:

  • The Consensus Group
  • The Export Credit Group
  • The Consultation Group
  • The Premia Group
  • The Country Risk Group

In the European Union there is a working group to coordinate policy on credit insurance cover, guarantees and finance credits.

The Federal Ministry of Economics and Technology takes part in the Paris Club rescheduling negotiations as the leading representative of the Federal Republic of Germany.

The Berne Union is the worldwide biggest association of export credit and foreign investment insurers from OECD and non-OECD countries.

One-stop shopping for insurance needs

In major projects, an ever greater number of suppliers and manufacturers from different countries are increasingly involved. This leads to a growing role for reinsurance and joint insurance schemes.

If several exporters have receivables due from a foreign customer in their own name, each supplier can get cover from his own credit insurer to guard against bad debt losses (parallel insurance). If the receivables are only in the name of the lead contractor, there is the option of reinsurance or the proportional inclusion of a foreign share of deliveries. If the payment risks of the maincontractor are partially transferred to the sub-contractors, the sub-contractors can apply for cover with their respective credit insurers on the basis of a joint insurance agreement.

A special example of international cooperation ist the cover given for Airbus business. With the regard to these transactions the countries involved, France, the United Kingdom and Germany, work together on the basis of a specially drafted agreement.

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