This obviously requires a trade-off in terms of confidentiality. Regardless of whether or not this evolves, some sort of measure to improve the competitive position of private sector insurers may develop over the long run. The review also focussed on how to encourage banks to take more of an interest in medium-term export financing. In this regard, Vancouver-based Northstar Trade Finance Inc. was held up as a role model. Every loan is backed by EDC insurance to protect Northstar against non-payment by buyers.
Smaller companies benefit because they can then offer buyers competitive financing terms.
An added advantage is that the financing does not affect the exporter's line of credit with its own bank. Northstar's operations are backed by several of Canada's leading banks. He emphasizes that the Gowling report is basically positive about the direction in which the EDC is heading. The proposed vehicles could mean more competition for us. David Clarke is an Ottawa-based freelance writer.