National Interest Account Arrangements
In the case of Efic’s National Interest Account, the Minister can direct Efic to enter into a facility, or give approval for Efic 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 Efic and must reimburse Efic for any losses.
National interest transactions tend to involve:
- financial commitments which are too large for Efic's balance sheet
- risks which Efic considers are too high for it prudently to accept on its account
- transactions which would be commercially acceptable if Efic did not already have significant exposures to a country or entity related to the transaction.
Relationship between Efic and the Northern Australia Infrastructure Facility (NAIF)
Efic has entered into a Service Level Agreement (SLA) with NAIF.
The services provided by Efic 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).
Efic 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 Efic.
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 Efic and NAIF.