Export Credit Survey 2010

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Last year the export credit agencies came to the rescue of customers who could not source finance from liquidity-restricted banks. In 2010 the export credit agencies are still extremely busy, with commercial loans still too expensive compared with what is on offer with government-guaranteed loans.

“In uncertain times, as we are in, we tend to have more export credit business,” says Gordon Welsh, head of aerospace, Export Credits Guarantee Department (ECGD). “We’re counter-cyclical. In the very good times business slacks off because other forms of finance are available to more people.”

However, changes might be afoot. The availability and access to cheap funding has brought to the surface a number of issues relating to export credit. Some have suggested that export credit is too cheap and allows customers to order and expand capacity, perhaps irresponsibly because they have access to cheap finance.

Another complaint is coming from European airlines......

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