National Interest Account Arrangements
In the case of Export Finance Australia’s National Interest Account, the Minister can direct Export Finance Australia to enter into a facility, or give approval for Export Finance Australia to enter into a facility - if the Minister believes that it is in the 'national interest' to do so. If a transaction is written on the National Interest Account, the Commonwealth receives the net income from Export Finance Australia and must reimburse Export Finance Australia for any losses.
National interest transactions tend to involve:
- financial commitments which are too large for Export Finance Australia's balance sheet
- risks which Export Finance Australia considers are too high for it prudently to accept on its account
- transactions which would be commercially acceptable if Export Finance Australia did not already have significant exposures to a country or entity related to the transaction.
Relationship between Export Finance Australia and the Northern Australia Infrastructure Facility (NAIF)
Export Finance Australia has entered into a Service Level Agreement (SLA) with NAIF.
The services provided by Export Finance Australia to the NAIF, and provided for under the SLA, fall into two broad categories:
- Transaction due diligence, environment and technical review, credit assessment, and loan management; and
- Corporate and administrative services (including secretariat and board secretary, legal, compliance, financial management and reporting, human resources, information technology and communications, property management).
Export Finance Australia also assists NAIF in managing its arrangements with the State Governments of Queensland and Western Australia as well as the Northern Territory.
These services support NAIF in meeting its legislative mandate.
The SLA gives the flexibility to NAIF to determine which functions they will perform and which to outsource to Export Finance Australia.
The SLA arrangements ensures an efficient use of existing Commonwealth resources, reducing the duplication of ‘back-office’ resourcing requirements across government entities.
Find out more about the Service Level Agreement (SLA) between Export Finance Australia and NAIF.