This Essay questions whether Extra Credit Agencies should provide such long-term commercial risk insurance in project finance transactions. It can be argued that ECA-provided commercial risk insurance in project financings lifts from commercial banks the onus of rigorously analyzing the commercial risks of a project and that ECAs lack the institutional experience and commercial orientation to sufficiently appraise a project's commercial risk. This leads to the very real possibility that projects will be undertaken that on their own (i.e., without commercial risk insurance) might not be commercially viable.
Export Credit Agencies, Project Finance, and Commercial Risk: Whose Risk is it, Anyway?,
24 Fordham Int'l L.J. 1371
Available at: http://ir.lawnet.fordham.edu/ilj/vol24/iss4/10