Exporters who wish to take their goods or services to overseas markets will often face significant risks in their endeavours to generate new business. The likelihood of non-payment in these environments is heightened in the face of enhanced:

1. •

   commercial risk (ie failure to pay by an overseas buyer, overseas buyer's insolvency, unilateral breach of contract, non-performance of the asset or non-payment by off-takers), and

2. •

   political risk (ie the risk that government action or political circumstances will have an adverse effect on local business and/or international investment)

For certain goods or services or in certain markets, these risks may substantially inhibit the availability of commercial financiers, meaning that in the absence of Export Credit Agency (ECA) assistance, many such projects may never get off the ground.

ECAs exist to step into this gap and help mitigate the commercial and/or political risks inherent in dealing with an overseas business, providing an important source of financial support to project developers, exporters or