Begun last summer, the latest review concluded that the EDC’s public reporting on the performance of its credit insurance operations does not meet requirements imposed on the private sector even though it borrows using the federal government’s credit rating. The EDC’s non-financial disclosures were also deemed inferior to those of other export credit agencies such as the U.S. Export-Import Bank, and international institutions such as the World Bank.
The EDC told The Globe it is developing a new disclosure policy, to be revealed later this year. And it said it fully supported the review. “We’ve always welcomed this process, as it presented an opportunity to step back from day-to-day business to consider EDC’s current and future roles in contributing to the success of exporters,” it said in a statement.
The EDC has long defended its opacity as necessary to retain its customers’ trust, and has said legal and statutory restrictions prevent it from releasing information. Aaron Wudrick, federal director of the Canadian Taxpayers Federation, argued that if the EDC’s clients require greater confidentiality, they can always turn to private-sector financial institutions. “Taxpayers have a right to know what’s going on with their money,” he said.
“We must all recognize that any scaling back of export support would be bad for Canadian exporters and the many thousands of workers they employ.”