(Briefing paper by Marijn Peperkamp – Dutch Campaing Against Arms Trade, 16 June 2006)
Export Credit Agencies (ECAs) are collectively the single largest class of public financial institutions. They finance around ten percent of world trade and are the most important source ofdeveloping countries’ debt. One of the sectors benefiting most from ECA support is the arms industry. Probably, around a quarter of the long-term credits and guarantees provided by European ECAs goes to military exports. Military export credits are not coherent with European and national development policies which aim at reducing poverty through the Millennium Development Goals, reducing the global debt burden and combating bribery.
Read the briefing paper.