International Cooperation

Many countries have export credit agencies whose role is to promote their countries’ exports in a similar way to NZECO.  It is common for these agencies to cooperate via the exchange of information and experiences, as well as the coinsuring or reinsuring of risk.  We are focused on developing our international connections and personal relationships with these agencies, in order to deepen our expertise, to benchmark our policies and processes, and to identify risk-sharing opportunities – all with the objective of better supporting New Zealand exporters.

Berne Union Prague Club

NZECO is a member of the Prague Club, an association of new or smaller Government-owned export credit and political risk insurers.  Its primary purpose is to facilitate the exchange of information and knowledge relating to risk assessment, product development and risk management.  It is a very diverse membership with the 38 members representing countries from Central and Eastern Europe, the Middle East and Africa, Central and Southeast Asia.

Via this association, we also interact closely with the Berne Union, an association of over 50 of the world’s larger export credit and political risk insurers.  Around 10% of the world’s exports have been annually insured by the Berne Union and Prague Club members over recent years. 

We are an active participant amongst both the Prague Club and Berne Union members.  In 2015, the NZECO Manager was elected to serve as the Chair of the Prague Club for a two year period, which provides a further opportunity for NZECO to strengthen its international connections.

Bilateral Cooperation and Reinsurance Arrangements

Cooperation as well as Reinsurance arrangements between export credit agencies are increasingly common, with the aims of sharing information as well as reinsuring risks.

NZECO has a Reinsurance arrangement with Efic (Australia) to facilitate exports from Australia and New Zealand.  If an Australian and New Zealand company are delivering a project in a third country, either jointly or under a lead contractor and sub-contractor arrangement, then Efic and NZECO may underwrite the buyer and country risks either jointly or via reinsurance (where the export credit agency of the  lead contractor reinsures  a portion of the risk with the sub-contractor’s export credit agency).

We also have a reinsurance arrangement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) which provides us with an opportunity to reinsure New Zealand exports sold to Government and public buyers from ICIEC’s Islamic country members.

NZECO has a Services Arrangement with Sweden’s EKN, under which EKN provides their expertise in support of NZECO’s operations.  Examples include the provision of risk assessments by EKN’s specialist country risk team.  This has been a positive, long-standing arrangement which has contributed to increasing the knowledge of both NZECO and EKN.

We also have a general cooperation agreement with Belarus’ Eximgarant.

Indemnity Arrangements with Private Sector

NZECO has master indemnity arrangements with Liberty Mutual Insurance Company, Liberty International Underwriters Canada, and AIG Australia Limited to enable the provision of surety bonds on behalf of New Zealand exporters in North America and the Pacific.

We also have a Master Guarantee with the Canadian financier, Northstar Trade Finance who specializes in structuring loans to foreign buyers, with extended repayment terms.

The OECD

As a member of the OECD, New Zealand cooperates with other OECD countries on guidelines to support proper and sustainable practices in the delivery of export credits.

One example is the OECD Arrangement on Officially Supported Export Credits, which regulates payment conditions, interest rates and premiums for state export credit support. A primary purpose of the Agreement is to provide a framework for the orderly use of export credits and to foster a level playing field for exporters and financiers across difference countries.

The OECD countries also co-operate on guidelines called the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence. The OECD’s working group for export credits and guarantees regularly follows up and develops the guidelines and their application. Read more about NZECO's environmental policy.

Another area of co-operation is corruption where OECD members have agreed on a common policy and procedures in the form of OECD Recommendation on Bribery and Officially Supported Export Credits. Read more about NZECO’s NZECO Anti-Bribery Policy.

NZECO also follows sustainable lending principles that OECD countries have agreed in regards to export credits offered to public buyers in countries that have restrictions on commercial borrowing under programs with the World Bank and IMF.

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