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The majority of ECAs provide insurance and other services for medium-term (from 2 to 5 years) and long-term (5 to 10 years and above), transactions which are usually associated with large projects.
Although the Organisation for Economic Cooperation and Development (OECD) argues that public ECAs’ contribution to underwriting the aggregate financing of world trade is relatively small, it confirms that “official support plays an increasingly important role in individual transactions and for projects in developing countries where the availability of official support is decisive in allowing the project and the related exports to be realized.” ( Union Yearbook 2012.pdf) ECAs thus exert a powerful leveraging effect.
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