The
2nd Meeting of Heads of Export Credit Agencies of BRICS (BRICS ECAs)
was held at New Delhi on October 13, 2016. The meeting was part of series of
events being organised under the Chairmanship of India of BRICS Forum. It was
organized parallel with meetings of BRICS Trade Ministers. The meeting was
hosted by ECGC Limited, a premier Export Credit Agency of India.
Heads
of BRICS ECAs namely Marcelo
Franco, CEO, ABGF
(Brazil), Alexey Tyupanov, CEO, EXIAR (Russia), Geetha Muralidhar, Chairman cum Managing
Director, ECGC Ltd. (India), Wang Yi, Chairman, SINOSURE (China),
Kutoane Obed Kutoane, CEO, ECIC (South Africa),
along with other officials from respective organisations participated in the meeting.
Members
of the BRICS ECAs Forum are also the members of the International Union of
Export Credit and Investment Insurers, London (U.K.) which is also known as
Berne Union. BRICS ECAs are actively involved in facilitating cross-border
trade by supporting export credits and foreign investments.
BRICS
countries had a share of around 22 percentage of World Trade with a Total
Exports of about USD 3.5 trillion in 2015. BRICS ECAs supported more than USD
473 billion of exports from the Member countries. Members exchanged notes about
various credit insurance products, business sectors and major destinations
covered by the group. Members also discussed business trends and the rising
defaults and claims in the light of heightened political and economic risk.
The
highlight of the meeting was an interactive session with Mr Xian Zhu, Vice President
and COO, New Development Bank (NDB). BRICS ECAs initiated discussion on working
in close co-operation with NDB to promote intra-BRICS trade and to support projects
by BRICS exporters. ECGC updated members about the upcoming Technical Workshop
which is being organized under India’s BRICS Chairmanship.
The
Terms of Reference for co-operation finalized in the last BRICS heads of ECAs
meeting held at Russia were signed by the CEOs of BRICS ECAS.
The
next BRICS Heads of ECAs meeting will be hosted by SINOSURE, China under the
chairmanship of China.
The Brazilian Guarantees Agency (ABGF) was
established in 2013 as a state-owned company under the Ministry of Finance.
ABGF’s mission is to manage state guarantee funds and to insure or provide
guarantees against non-marketable risks in priority areas of economic and
social interest.
The Russian Agency for Export Credit and
Investment Insurance (EXIAR) was established in 2011
as an open joint-stock company. EXIAR's mission is to support Russian high-tech
exports by insuring export credits against commercial and political risks, as
well as Russian investments abroad against political risks. Vnesheconombank is
the sole shareholder of EXIAR. The agency's charter capital is RUB 31 billion.
Since November 2014 Eximbank of Russia, a Russian specialized government–owned
export–import bank, has been a subsidiary of Russian Agency for Export Credit
and Investment Insurance (EXIAR).
ECGC Limited (ECGC), India
was established in 1957 as an export credit insurance organization fully owned
by Government of India. ECGC’s mission is to provide credit insurance for
exporters and banks in India, and to encourage, facilitate and develop trade
between India and other countries.
The China Export & Credit Insurance
Corporation (SINOSURE) was established in 2001
as a state-funded policy-oriented insurance company with independent status of
legal person. SINOSURE’s mission is to promote China’s foreign trade and
economic cooperation.
The Export Credit Insurance Corporation
of South Africa SOC Ltd (ECIC) was established
in 2001 as a state-owned registered insurer. ECIC has been mandated to enter
into contracts of insurance to support medium/long-term export credit and investment
transactions on behalf of the South African government.
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MJPS