Export Credit Agencies

Export Credit Agencies[Finance]

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Export_Credit_Agencies Export Credit Agencies (ECAs) are national public institutions which act as finance companies for private domestic entities who do business abroad. ECAs provide government-backed loans, guarantees and insurance covering both commercial and political risk. Most industrialized nations have at least one ECA, which is usually a public institution.For instance, a transnational corporation, or investor, will seek insurance from an ECA when investing money in a foreign country. The rate that they receive depends on the political and economic stability of the foreign country being invested in.The activities of ECAs are considered by some, such as Noam Chomsky, to be a type of welfare for large corporations. ECAs are also criticised for insuring companies against political actions which aim to protect trade union|workers' rights, other human rights or the natural environment in the countries where the investment is being made. quote Wikipedia - Article - History - License:GFDL

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