Decline in export credits

Other Names:
Burden of export credit financing upon countries
Lack of credit guarantee facilities for national exports

The growth of developing country exports has necessitated the extension of credit to their foreign customers, including developed countries. Export credit agencies have encouraged short-term credits, particularly to the countries which did not experience debt-servicing difficulties or which did have payments problems but were implementing adjustment programmes. As a result, total outstanding officially-supported export credits rose by $7.8 billion in 1985 compared with $3 billion in 1983. Export credits with longer maturities continued on a downward trend throughout the first half of the 1980s, and collapsed in 1985 to a net $1.9 billion, or less than half the previous year's level. The amount of credit thus provided by developing countries to developed countries in connection with exports on deferred-payments terms may be such as to impose a heavy strain on the balance of payments position of the developing country.

Broader Problems:
Export credit risks
Related UN Sustainable Development Goals:
GOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST