Principles of Project Finance

Business undertaken by members of the Berne Union in recent years has been

as follows:

The use of export credits declined in the 1990s as lenders were increasingly

willing to assume risk in developing countries without this cover, and investment

insurance followed a similar trend, but this trend reversed after the Asian crisis of

1997, in which significant losses were made by uninsured investors and lenders.

Berne Union members’ outstanding exposure of $516 billion of export credits

(short and medium/long term) at the end of 1999 represented about a quarter of

developing countries’ $2200 billion of debt.

As the figures indicate, a large proportion of ECA ...