No, no, the users pay a guarantee fee. The capital backing the guarantee is provided by whoever has capital around and wants to. Obviously, as it is in the interest of users that this is in place, users are the most likely sources of guarantee capital, but their countries could do it too, or individuals or institutional investors who are interested in a revenue source coming from trade guarantee fees. Users who have enough capital invested in the guarantee society would effectively be receiving a discount to their own use of the guarantee but that's the net effect of wearing two hats, user and capital provider. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
The capital backing the guarantee is provided by whoever has capital around and wants to.
I don't see too much of an appetite among investors for this after being stung by the credit derivatives/ credit insurance model.
It's a role for governments IMHO. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
Which is why - yes, you're right - it should be reserved for governments.
