Measuring the opportunity cost of ECA capital - i.e. ECGD export credit subsidies

March 16, 2005 (Source: UK Secretary of State for Trade and Industry) — As a part of its efforts to encourage true "break even" terms of export credits, as required by Article 23 of the OECD mediated Arrangement on Export Credits [and also by the WTO Agreement on Subsidies], the UK's ECGD commissioned a study which showed that the opportunity cost of lost profits on ECGD lending amounts to some £150 million or US$271 million per year. "For the first time anywhere in the world, Government and public have a transparent assessment of the economic cost of providing export credit on a break even basis, and will be able to compare this cost with other forms of industrial support."