ABSTRACT
Export credits are fi nancing arrangements designed to mitigate the risks to buyers and sellers associated with international transactions. With globalization and increased efforts to win export markets, many nations are providing export fi nance to their exporters. Government fi nancing could be in the form of supplier credit or buyer credit. Supplier credits are credits extended to the buyer by the exporter; that is, the exporter arranges for government fi nancing. Such credits also include a direct extension of credit by the exporter, as well as the exporter’s arrangement of fi nancing from other private sources. Buyer’s credits are extended to the buyer by parties other than the exporter. Banks, government agencies, or other private parties (domestic or foreign) could provide buyer credits. Programs are usually categorized as short term (usually less than two years), intermediate term (usually two to fi ve years), and long term (usually more than fi ve years) fi nancing. This chapter is primarily devoted to supplier or buyer credits that are extended by government agencies.
