Officially Supported Export Credits
Credits may be short term (up to two years), medium term (two to five years) or long term (five to ten years). They are usually supplier's credits, extended to the exporter, but they may be buyer's credits, extended to the importer. The risk on these credits, as well as on guarantees and insurance, is borne by the sponsoring government. ECAs limit this risk by being "closed" on risky countries, meaning that they do not accept any risk on these countries. In addition, a committee of government and ECA officials will review large and otherwise riskier than normal transactions.
Read more about this topic: Export Credit Agency
Famous quotes containing the words officially, supported and/or export:
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—Studs Terkel (b. 1912)
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—In New York City, U.S. public relief program (1935-1943)