ECA

ECA is an abbreviation of “Export Credit Agency” and each country’s ECA agency provides medium/long-term credit guarantee/insurance in favor of exporters/financing banks against various risks (political, commercial, etc.) that commercial banks are not willing/able to assume directly in order to promote the export of investment goods originating in that country. Such credits provided under the guarantee/insurance of the ECA institution are called “ECA credits”.

The main advantages of ECA credits for exporters are

• Increased competitiveness against other country exporters
• Guarantee of collection of the cost of goods and immediate collection
• Opportunity to find new markets
• The main advantages of ECA credits for the importer
• Medium/long term financing
  Low-cost borrowing
• Ease in cash flow planning
• Increased competitive power