Access to Preshipment Export Finance : Do Guarantees Help?
Many small- and medium-sized emerging exporters in developing countries have inadequate access to short-term working capital to finance their export transactions. This is mainly due to a market failure resulting from informational asymmetries on th...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/04/8340362/access-preshipment-export-finance-guarantees-help http://hdl.handle.net/10986/11166 |
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okr-10986-111662021-04-23T14:02:54Z Access to Preshipment Export Finance : Do Guarantees Help? Alavi, Hamid ADMINISTRATIVE COSTS ADVISORY SERVICE APPLICATION PROCESS ASSETS BANK LOANS BENEFICIARIES BORROWER BUSINESS PLAN BUYER BUYERS CASE OF DEFAULT COLLATERAL COMMERCIAL BANKS COUNTRY RISK CREDIBILITY CREDIT ENHANCEMENT CREDIT RISKS DEFAULT RISKS DEFAULTS DEVELOPING COUNTRIES ECONOMIC MANAGEMENT EXPORT FINANCING EXPORTER EXPORTERS FINANCIAL BURDEN FINANCIAL INSTITUTIONS FINANCIAL POSITION FINANCING CONSTRAINTS FUND PERFORMANCE GUARANTEE FEE GUARANTEE SCHEMES GUARANTY INFORMATIONAL ASYMMETRIES INSTRUMENT INSURANCE INSURANCE AGENCIES INSURANCE AGENCY LETTER OF CREDIT LIABILITY LINES OF CREDIT LOAN LOAN DEFAULT LOAN DEFAULTS MARKET FAILURE MARKETING MARKETING CAMPAIGN MATURITIES MIDDLE EAST MORAL HAZARD NET WORTH NONPAYMENT NONPERFORMANCE NORTH AFRICA OPPORTUNITY COST OUTREACH OVERDRAFT OVERDRAFT FACILITIES POLITICAL RISK PRESENT VALUE RETURN RISK OF LOAN SELF-FINANCE SENIOR TERM CREDIT THIRD PARTY RISK TRANSACTION TRANSACTION COSTS TRANSPORT WEB SITE WORKING CAPITAL Many small- and medium-sized emerging exporters in developing countries have inadequate access to short-term working capital to finance their export transactions. This is mainly due to a market failure resulting from informational asymmetries on the part of banks about exporters' ability to execute export orders according to buyers' standards of quality, cost, and delivery. Several countries have established pre-shipment export finance guaranty facilities to help alleviate this market failure. Their aim is to act as catalyst to temporarily share nonperformance risks of exporters with the banks, allowing the banks to evaluate nonperformance risks of emerging exporters. Some countries have implemented these facilities successfully encouraging banks to provide pre-shipment finance without guarantees, while others have not. This note draws on Tunisia's experience to outline the necessary conditions for the success of these facilities. 2012-08-13T14:20:04Z 2012-08-13T14:20:04Z 2007-04 http://documents.worldbank.org/curated/en/2007/04/8340362/access-preshipment-export-finance-guarantees-help http://hdl.handle.net/10986/11166 English PREM Notes; No. 113 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Middle East and North Africa Tunisia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADMINISTRATIVE COSTS ADVISORY SERVICE APPLICATION PROCESS ASSETS BANK LOANS BENEFICIARIES BORROWER BUSINESS PLAN BUYER BUYERS CASE OF DEFAULT COLLATERAL COMMERCIAL BANKS COUNTRY RISK CREDIBILITY CREDIT ENHANCEMENT CREDIT RISKS DEFAULT RISKS DEFAULTS DEVELOPING COUNTRIES ECONOMIC MANAGEMENT EXPORT FINANCING EXPORTER EXPORTERS FINANCIAL BURDEN FINANCIAL INSTITUTIONS FINANCIAL POSITION FINANCING CONSTRAINTS FUND PERFORMANCE GUARANTEE FEE GUARANTEE SCHEMES GUARANTY INFORMATIONAL ASYMMETRIES INSTRUMENT INSURANCE INSURANCE AGENCIES INSURANCE AGENCY LETTER OF CREDIT LIABILITY LINES OF CREDIT LOAN LOAN DEFAULT LOAN DEFAULTS MARKET FAILURE MARKETING MARKETING CAMPAIGN MATURITIES MIDDLE EAST MORAL HAZARD NET WORTH NONPAYMENT NONPERFORMANCE NORTH AFRICA OPPORTUNITY COST OUTREACH OVERDRAFT OVERDRAFT FACILITIES POLITICAL RISK PRESENT VALUE RETURN RISK OF LOAN SELF-FINANCE SENIOR TERM CREDIT THIRD PARTY RISK TRANSACTION TRANSACTION COSTS TRANSPORT WEB SITE WORKING CAPITAL |
| spellingShingle |
ADMINISTRATIVE COSTS ADVISORY SERVICE APPLICATION PROCESS ASSETS BANK LOANS BENEFICIARIES BORROWER BUSINESS PLAN BUYER BUYERS CASE OF DEFAULT COLLATERAL COMMERCIAL BANKS COUNTRY RISK CREDIBILITY CREDIT ENHANCEMENT CREDIT RISKS DEFAULT RISKS DEFAULTS DEVELOPING COUNTRIES ECONOMIC MANAGEMENT EXPORT FINANCING EXPORTER EXPORTERS FINANCIAL BURDEN FINANCIAL INSTITUTIONS FINANCIAL POSITION FINANCING CONSTRAINTS FUND PERFORMANCE GUARANTEE FEE GUARANTEE SCHEMES GUARANTY INFORMATIONAL ASYMMETRIES INSTRUMENT INSURANCE INSURANCE AGENCIES INSURANCE AGENCY LETTER OF CREDIT LIABILITY LINES OF CREDIT LOAN LOAN DEFAULT LOAN DEFAULTS MARKET FAILURE MARKETING MARKETING CAMPAIGN MATURITIES MIDDLE EAST MORAL HAZARD NET WORTH NONPAYMENT NONPERFORMANCE NORTH AFRICA OPPORTUNITY COST OUTREACH OVERDRAFT OVERDRAFT FACILITIES POLITICAL RISK PRESENT VALUE RETURN RISK OF LOAN SELF-FINANCE SENIOR TERM CREDIT THIRD PARTY RISK TRANSACTION TRANSACTION COSTS TRANSPORT WEB SITE WORKING CAPITAL Alavi, Hamid Access to Preshipment Export Finance : Do Guarantees Help? |
| geographic_facet |
Middle East and North Africa Tunisia |
| relation |
PREM Notes; No. 113 |
| description |
Many small- and medium-sized emerging
exporters in developing countries have inadequate access to
short-term working capital to finance their export
transactions. This is mainly due to a market failure
resulting from informational asymmetries on the part of
banks about exporters' ability to execute export orders
according to buyers' standards of quality, cost, and
delivery. Several countries have established pre-shipment
export finance guaranty facilities to help alleviate this
market failure. Their aim is to act as catalyst to
temporarily share nonperformance risks of exporters with the
banks, allowing the banks to evaluate nonperformance risks
of emerging exporters. Some countries have implemented these
facilities successfully encouraging banks to provide
pre-shipment finance without guarantees, while others have
not. This note draws on Tunisia's experience to outline
the necessary conditions for the success of these facilities. |
| format |
Publications & Research :: Brief |
| author |
Alavi, Hamid |
| author_facet |
Alavi, Hamid |
| author_sort |
Alavi, Hamid |
| title |
Access to Preshipment Export Finance : Do Guarantees Help? |
| title_short |
Access to Preshipment Export Finance : Do Guarantees Help? |
| title_full |
Access to Preshipment Export Finance : Do Guarantees Help? |
| title_fullStr |
Access to Preshipment Export Finance : Do Guarantees Help? |
| title_full_unstemmed |
Access to Preshipment Export Finance : Do Guarantees Help? |
| title_sort |
access to preshipment export finance : do guarantees help? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/04/8340362/access-preshipment-export-finance-guarantees-help http://hdl.handle.net/10986/11166 |
| _version_ |
1764415760393830400 |