Eximbanka’s CEO Ing.Rastislav Podhorec, MBA, in a commentary for HN(Hospodárske noviny) about the fact that export credit insurance is going through a period of dynamic growth, but also increased risks.
The October meeting of the Prague Club of the Berne Union sent a clear signal: export credit insurance is going through a period of dynamic growth, but also of increased risks. Club members reported a 147 per cent increase in new medium- and long-term insurance (MLT) commitments compared to the previous year.
Growth in the segment has been gradual, with promising developments in the transport and renewable energy sectors, confirming the trend towards more sustainable and technologically advanced exports. However, the largest category and the driver of MLT insurance remains the manufacturing sector, which has maintained a stable position even in an increasingly competitive environment.
The number of insurance claims in the MLT business increased by more than 220 percent, the majority of which were politically motivated events. Countries with the highest incidence included Ghana, Russia and Turkey. The Business Confidence Index indicates that Club members expect further increases in insurance claims, in contrast to the more moderate stance of the broader Berne Union. Key drivers of uncertainty remain the ongoing conflicts, particularly the war in Ukraine, which may be triggers for future insurance claims and thus affect the availability of funding in global markets.
I see these trends as both a challenge and an opportunity. Export credit agencies (ECAs), including Eximbanka, need to be more responsive, strengthen cooperation with domestic firms and diversify risk portfolios. Domestic coverage that supports domestic exporters and the stability of trade transactions is growing in importance. ECAs are increasingly supporting export financing in the domestic market, thereby enhancing liquidity, investment activity and stability for exporters. Today, export credit agencies manage exposures in 176 territories around the world. State-owned entities account for approximately 40 per cent of property claims and total disbursements amount to €56 million in various sectors. The ten largest markets account for up to 77 percent of all claims. The majority of claims are thus concentrated in a few countries, highlighting the need for a more even spread of risks. I expect the 2025 assessment to confirm a continuation of the positive developments: growth in activity, digitalisation and an emphasis on sustainable financing.
Eximbanka focuses on supporting Slovak small, medium and large exporters, effective risk management, cooperation with commercial banks and strengthening partnerships with other export credit agencies, development banks and multilateral institutions.
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