The General Steering Committee Meeting to be held in Paris
The Annual General Steering Committee Meeting of the Credit Alliance will be held in Paris on January 29th followed by the Country Risk Conference in January 30th. ECGA being a member of the General Steering Committee as well as Coordinator for Africa – Middle East Region has been invited and is also expected to attend the meeting and the conference.
Export Credit Insurance services continue to attract many Omani Exporters
The Export Credit Guarantee committee under the Chairmanship of H. E. Sheik Yaqoob bin Hamed Al-Harthy, approved a number of requests from the exporters. During the year 2000, the Export Credit Guarantee Agency (ECGA) has issued a total credit insurance cover of RO 116.9 million to exporters compared to RO 98.9 million in 1999 - an increase of 18.2%. The number of credit insured exporters in year 2000 rose to 110 compared to 97 in 1999. Moreover, the number of overseas buyers to whom ECGA provided credit insurance cover rose to 2310 in the year 2000 from 2077 in 1999 which represents an increase of 11%.
Questions and Answers
Q- What are the benefits and advantages of the export credit insurance services to the exporters?
There are numerous benefits to the exporters. The credit Insurance cover assists the exporters to sell safely on credit terms, thus increasing their competitiveness by allowing buyers more time to pay. Moreover, it provides greater financial liquidity and flexibility by guaranteeing their cash flow even when not receiving payments on their goods exported abroad. Furthermore, the policy covers the risks of non-payment - both political and buyer-related for selling to new markets, thus encouraging penetration into higher-risk foreign markets. In addition, the exporters obtain financial support for post shipment financing by bills discounting of credit insured exports through commercial banks at concessional interest rates. It also allows the exporters to assign the benefits under the Export Credit Policy as additional collateral to Banks thus raising and enhancing necessary financing for their export requirements. The credit insured exporters can also benefit from pre-shipment financing available with the commercial banks through the agency's pre-shipment credit guarantee scheme.
Tips to Exporters
This is a devoted special section of ECGA's News bulletin, for the year 2001 where the Agency would like to introduce brief tips to exporters while extending credit to buyers. Such helpful credit management tips will appear regularly in the future quarterly issues of the ECGA's News bulletin during the year.
A Buyer who can't or won't pay is worse than no buyer at all
All reputable companies will respect the professionals and good house keeping of a business that taken credit vetting seriously and are likely to question the propriety and credibility of one that does not.
ECGA's credit insurance policy provides you with the necessary protection against the risks of non-payment from such buyers while at the same time it gives you the opportunity of selling your goods at a very liberal credit terms.
When the buyer advises that he anticipates not being able to pay as agreed, the buyer had already broken one of the promises made when the account was opened - the promise that the buyer would meet the terms of payment. It is not necessary to wait for the other shoe to fall before taking protective action.