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BACK             Issue No. 1/2003
 Board of Directors reviewed ECGA's Performance

 ECGA of Oman signed Memorandum of Understandings with EGFI of Iran

 Certificate of Merit awarded by Credit Alliance to the General Manager of ECGA

 Oman Textile Mills Co. SAOG is accredited with ISO-14001 Certification

 Prague Club Meeting held in Ljublijana, Slovenia.

 ECGA's officials attended Corporate Governance Workshop.

 Certificate of Merit Awarded by the Agency

 Country Profile of Buyers of Omani Insured Exports

 Questions and Answers


 Role of the Export Credit Guarantee Agency (ECGA) in Promoting Omani Non-Oil Exports and its Future Outlook

 Tip to Insured Exporter

 Congratulatory Message

 Past News

 
Board of Directors reviewed ECGA’s performance
The Board of Directors of Export Credit Guarantee Agency under H. E. the Chairman Sheikh Yaqoob bin Hamed Al Harthy reviewed the performance report of the Agency up to the 3rd Quarter of the year 2002 at its sixth meeting of the year held on October 16, 2002. The report which provides the assessment of the performance of the Agency’s operational as well as financial position were reviewed by the members. The Board was pleased with the performance as the Agency continued to be on the right track as supported by various operational and financial indicators. The Agency remained self-sustaining while extending its credit insurance services to increasing number of Omani exporters.

 
ECGA of Oman signed Memorandum of Understanding with EGFI of Iran
Export Credit Guarantee Agency of the Sultanate of Oman signed Memorandum of Understanding (MOU) with the Export Guarantee Fund of Iran (EGFI). The Memorandum covers various areas of cooperation including exchanges of information on debtors/ buyers and banks, assistance in recoveries, exchanges of experiences in claim payments, training, etc. EGFI of Iran commenced its export credit insurance activities on 1993 and is now a member of the Credit Alliance Network.

 
Certificate of Merit awarded by Credit Alliance to the General Manager of ECGA
The Credit Alliance during its annual meeting in Paris on October 24th 2002, awarded Certificate of Merit to Mr. Nasir bin Issa Al Ismaily, the General Manager of ECGA. The award was presented through his involvement in the Credit Alliance Network since its creation in 1992. Mr. Nasir Al-Ismaily was also reelected for another term as Regional Coordinator for Africa-Middle East Group within the Alliance as well as member representing the Regional Group in the General Steering Committee of the Credit Alliance. New members that have recently joined the Credit Alliance include the Saudi Export Program, Export Guarantee Fund of Iran, Inter-Arab Investment Guarantee Corporation as well as Islamic Corporation of Investment & Export Credit. The Credit Alliance which operates under the auspices of COFACE has now grown to 52 members to different countries world-wide.

 
Oman Textile Mills Co. SAOG is accredited with ISO-14001 Certification
Oman Textile Mills Co. SAOG has been awarded with the ISO-14001 certification by Det Novskee Veritas (DNV) of Netherlands. Oman Textile Mills Co. SAOG is one of the first exporters to avail ECGA’s credit insurance service since 1992. It exports textile fabrics mostly to GCC countries. ECGA congratulates the company for its certification and achievements.

 
Prague Club Meeting held in Ljublijana, Slovenia
The Prague Club held its second meeting of the year 2002 in Ljublijana, Slovenia hosted by the Slovene Export Corporation (SEC) from November 4 to 6, 2002. ECGA of the Sultanate of Oman participated in the conference and its workshops. ECGA became the first ECA from an Arab country to be a member of the Prague Club in the year 2000. The Prague Club which operates under the auspices of the Berne Union – that is the International Union of Credit & Investment Insurers consists of a number of ECAs from the emerging markets including Central and Eastern Europe, Africa, Middle-East and Asia.

 
ECGA’s officials attended Corporate Governance Workshop
A number of ECGA’s staff, management and directors of the Board of ECGA attended Corporate Governance Seminars organized by Ernst & Young held in Muscat on October 30th, and December 21st, 2002 respectively. The seminars were highly useful as they provide insights into good corporate governance and raise the awareness of the roles and responsibilities of the audit committees.

 
Certificate of Merit awarded by the Agency
ECGA has awarded Certificate of Merit to two of its employees Mr. Ahmed bin Khalfan Al Balouchi – Underwriting Officer and Ms. Fahima bint Salman Al- Rashidy – Secretary for completion of ten years of Service with the Agency.

 
COUNTRY PROFILE OF BUYERS OF OMANI INSURED EXPORTS
UNITED ARAB EMIRATES

United Arab Emirates covers an area of about 83600 square kilometers. It has a population of over 3 million. It consists of Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al quwain, Ras Al Khaimah and Fujairah.

Total Omani non-oil exports including re-exports to UAE during the year 2001 were RO.314,050,089 while imports were RO.632,732,587. As for the first seven months of 2002 , The United Arab Emirates topped the countries importing Omani non-oil exports valued at R.O.49.6 million as per the Statistical Bulletin issued by the Ministry of National Economy.

Due to its geographical proximity with the Sultanate, UAE represents the largest market for Omani non-oil exports.

Export Credit Guarantee Agency has insured Omani exporters for various manufactured products to UAE. The total credit limits issued by ECGA to UAE amounts to RO.44 million to 1165 buyers. Total business declared as of date by the policyholders were RO.148 million. UAE constituted 12.2% of total cumulative amount of claims paid to exporters by the Agency with a recovery of 32%.

As per the latest publication of International Trade Finance Magazine (November 2002, Issue No. 417 published by Informa Professional) in its survey highlights on UAE it states as follows :

"Three out of five shipments are on open account. The reminder are either paid for in advance or are covered with 1/cs. Importers make dirham payments when due, but banks hold funds for up to three months before executing foreign exchange transfers."

Questions and Answers 
Q- As a distributor of Omani produced goods, can I avail ECGA’s credit insurance cover?
A- Yes indeed. The export credit insurance services is not a restricted only to manufacturers but also distributors and others involved in exporting Omani produced products.

Q- Does ECGA take over recovery action once a claim has been paid?
A- After payment of a claim, ECGA has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with ECGA subject to any further requirements it may have.

Q- As a credit insured exporter to ECGA how can I obtain cover for pre-shipment as well as post-shipment periods?
A- Export credit indemnity cover is available prior to shipment if your company is carrying any risk of loss. A Contract Policy can be issued by ECGA to the exporter for such shipment. The extent of pre-shipment risk will depend upon the type of goods produced. If non-standard or made to individual specification pre-shipment cover will be given. Otherwise post shipment only. The interest subsidy will be available from date of advance obtained from the bank only.

Q- Upon receiving ECGA's credit limit approval what should I do?
A- You should ensure that the approved buyer whose name and address is shown on the credit limit is the same party with which you have entered into the contract of sales. A slight variation in the name of a company can mean another separate legal entity. Should you wish to trade with the buyer's parent or associate or subsidiary companies, it is necessary for you to send in separate Credit Limit Application (CLA) since members of the buyer's group of companies are different legal entities. You should also pay particular attention to the amount, the payment terms, the expiry date (if any) as well as any specific conditions or endorsement shown or attached on it, e.g. the credit limit covers specific shipment only or you must report overdues to ECGA immediately or any other endorsement attached to the credit limit approval.

Q- What action as policyholder should take when recoveries are received from the buyer?
A- All proceeds of recovery action must be remitted in full promptly to ECGA for allocation. It will then allocate them in the proportion in which the original loss was shared and pay you your share.

Q- To remain fully insured is it necessary for me to limit the value of my contract to the precise value of the credit limit agreed by the Agency?
A- Not at all. On a large contract, you may for example be able to spread your dispatches so that the amount outstanding for goods exported is, at any one time, within the approved limit. This means you can undertake contracts of a value greater than that given of your credit limit, since it is revolving.

Q- When and how should I inform the Agency when the buyer delays payment?
A- Immediately any payment becomes two months outstanding, or when you notice the buyer has encountered financial problems, or when you hear an adverse information about the buyer. You can inform ECGA by phone or by any other means which are convenient to you such as E-mail and fax.

Q- Are credit limits issued to buyers by ECGA supersede earlier limits?
A- Credit limits issued by ECGA usually supersede all earlier limits but do not necessarily invalidate them. At Date of Ascertainment of Losses only one is judged applicable.


Tips to Exporters 

  In a business that is fiercely competitive and increasingly unpredictable, your ability as a growing enterprise to safeguard against bad debt and ensure the safety of your cash flow assumes even great significance. Hence it is important for you as an exporter to insure your exports receivables with ECGA.

 Credit insurance helps you to avoid the risks associated with non-payments resulting in a secure cash flow which gives you freedom to pursue your business strategies with confidence. Avail tangible benefits by credit insuring your export business with ECGA
3). Offering you the best credit risk protection at a price you can afford, let ECGA provides you with the reassurance needed in today’s business world to secure your company’s growth.

  By reducing management time spent on chasing aged debts, your own staff will be able to focus on key business goals.

 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.


CONGRATULATORY MESSAGE  

 ECGA takes this opportunity to congratulate our credit insured exporters and other Omani companies that have won His Majesty’s Cup for Best Five Factories in Oman for the year 2002.

Oman Fiber Optics Company SAOG
Jotun Paints Oman LLC
Voltamp Transformers Oman LLC
National Detergents SAOG
Mohsin Haider Darwish – Gas Division. LLC


 The Agency also compliments the credit insured exporters of ECGA and others for being awarded the Certificates of Appreciation for the year 2002.

Oman Cables Industry SAOG
Voltamp Manufacturers Co. LLC
Oman National Dairy Products Co. Ltd. SAOG
Reem Batteries & Power Appliances Co. SAOG
National Heaters Industries CO. LLC


The Omani exporters have long recognized and appreciated that one of major keys to success is to insure with ECGA for safe export business. The Agency provides confidence, encouragement and incentive in support of its services to exporters during the past ten years.


Past News 

Issue 1/2001, Issue 2/2001, Issue 3/2001, Issue 4/2001, Issue 1/2002, Issue 2/2002, Issue 3/2002, Issue 4/2002


   
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