The Role of Medium-Term Export Credit Guarantees and Insurance in Financing Foreign Trade

1968 ◽  
Vol 34 (4) ◽  
pp. 548
Author(s):  
Louis G. Guadagnoli
Keyword(s):  
Foreign Trade ◽  
Export Credit ◽  
Medium Term ◽  
Credit Guarantees ◽  
Export Credit Guarantees

scholarly journals The role of a creditor in the making of a debt crisis: the French government's financial support for Poland, between cold war interests and economic constraints, 1958-1981

2020 ◽  
Vol 27 (1) ◽  
pp. 73-94
Author(s):  
Emmanuel Mourlon-Druol
Keyword(s):  
Cold War ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Export Credit ◽  
Credit Guarantees ◽  
Export Credit Guarantees ◽  
Political Objective ◽  
The Cold War ◽  
Economic Constraints

In spite of considerable attention granted to sovereign debt failures, we still have limited knowledge of the incentives which induced creditors to lend at unsustainable levels. This article looks at the French government’s policy towards Poland from 1958, when economic cooperation between the two countries started, until Poland's announcement in 1981 that it could not service its debt. Export credit guarantees supported France's financial involvement, and this implied the government's strong influence on the decision to lend. This article brings out the tension between economic and political priorities in French policymaking during the cold war. Archival evidence reveals that as early as 1975 the French finance ministry warned that French risks were excessive; that Poland’s growing economic difficulties would render the country unable to repay its debts; and recommended limiting France's financial commitments. The French government, however, decided not only to carry on but also to increase lending, in order to support its political objective of using economic and financial means to relax East–West tensions. This article illustrates how creditors play a part in sovereign debt crises by voluntarily turning a blind eye to a country’s growing inability to repay its debts, and thus reinforce a vicious circle of indebtedness.

21. The financing of international trade

2017 ◽  
Author(s):  
MA Clarke ◽  
RJA Hooley ◽  
RJC Munday ◽  
LS Sealy ◽  
AM Tettenborn ◽  
...  
Keyword(s):  
International Trade ◽  
Export Credit ◽  
Payment Method ◽  
Financial Leasing ◽  
Credit Guarantees ◽  
Export Credit Guarantees ◽  
International Sales

This chapter examines the methods used to finance international trade. There are a variety of ways to pay for goods sold under an international sales contract. The method chosen for any particular transaction will depend in large part on the seller's confidence in the integrity and solvency of the overseas buyer, as well as on the bargaining strengths of the respective parties. A new payment method called the Bank Payment Obligation (BPO) makes it possible for the seller to mitigate the risks of non-payment and insolvency associated with open account transactions. This chapter discusses documentary bills, documentary credits, standby credits, performance bonds, and guarantees. It also considers other financing methods such as forfaiting and financial leasing before concluding with an overview of export credit guarantees.

Sign in / Sign up

Export Citation Format

Share Document