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Heads of BRICS ECAs meet in New Delhi - BRICS Countries account for 22% of World Trade

New Delhi, October 13, 2016:  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.

 About BRICS ECAs

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.