and experience with regulators on new forms of financing. THERE IS NO NEED TO REINVENT THE WHEEL 4.
Recommendation: discuss and elaborate an adequate regulatory framework, considering WTO, OECD and EU regulatory environment and UN Global Compact's ten principles 20 .
Regulations should ensure a framework within which SMEs are given a fair opportunity to compete. Regulations ensuring the availability of capital and permitting the access to transparent export finance tools may significantly affect the performance of SMEs. Concerning the export finance system the regulatory framework has to clarify: 1)
Fundamental Provisions
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Clear definition of the functions to be performed by the export finance system (credit institution; insurance company; guarantees, and or other export promotion tasks)
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Detailed specification of the service activities to be provided by the export finance system relating to export financing (service activities, financial service activities, investment service activities, etc.).
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Special attention should be paid to the anticorruption, due diligence procedures and adoption of a risk assessment methodology (country risks, commercial risks, political risks, classifications, ratings etc.) compliant with international standards;
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Delimitation of the target audience who could benefit of its services and products: resident, non-resident credit institutions, economic associations, individual firms, individual entrepreneurs, etc.
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It is worth to take into account the needs of small and medium-sized businesses, and develop specific tools for SMEs access to finance;
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Scope of the activities to be covered:
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marketable and/or non-marketable risks;
commercial (default payment; insolvency; refusal of the goods) / political risks (war, disturbances, …);
full period of cover;
Payment obligations of the export finance system in each of the cases.
2)
Budgetary and Governmental Relations
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Guarantee from Government of stable and long-term support to export finance system.
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Confirmation from government that it will provide first demand guarantees for the payment obligations undertaken by the ECA.
20
http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html
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