ECGA's Policy Holder Omani Non-Oil Exports increased
The growth of Omani non-oil exports for the year of 2004 has been remarkable as per the latest export statistics issued by the Ministry of National Economy. Total Omani non-oil exports of Omani origin (excluding re-exports) for year 2004 were RO.420.3 million compared to RO.304.1 million of 2003 or significant increases of 38.2%.
Annual General Meeting of ECGA for year 2004 held
The Annual General Meeting of the Export Credit Guarantee Agency (S.A.O.C.) was held on March 23, 2005. The meeting was presided by H.E. Sheikh Yaqoob bin Hamed Al Harthy, the Chairman of the Export Credit Guarantee Agency (S.A.O.C.). The year 2004 marked the thirteenth year of its unique credit insurance operations. The year was characterized by impressively gone by growth of export credit insurance operations as well as increased interest by exporters to avail domestic credit insurance services.
The AGM reviewed the operations, activities and achievements of the Agency during the year 2004. It is worth mentioning that the total credit limits issued by the end of the year 2004 were RO.166.5 million compared to RO.155.6 million in 2003 or a growth of almost 7%. The year 2004 covered exports to 3574 buyers in 93 countries compared to 3345 buyers in 2003. The Agency’s Gross Premium Income increased during the year 2004 to RO.428770 compared to RO.277,787/- for the similar period in 2003 or a rise of almost 54.3%. The net income after tax for the year 2004 was RO.323936 compared to RO.153466 for 2003 or significantly up of almost 111%. The Agency's equity capital increased from RO.8.57 million in 2003 to RO.9.79 million in 2004.Thus the Agency has significantly improved its profitability and has continued to remain self-sustaining while contributing in the promotion of Omani non-oil exports through its various credit insurance services as supported by higher level of Omani non-oil exports as stated above.
Annual Credit Alliance Meeting to be held in Shanghai, China
The annual general meeting of the Credit Alliance will be held in Shanghai from 12th to 13th May 2005. Apart from COFACE and its owned subsidiaries, the Alliance consists of a number of ECAs from the emerging markets. ECGA of the Sultanate of Oman joined the Credit Alliance in 1996 when the Alliance had only 16 members and since then it has grown to over 60 members worldwide with the total market representing more than three quarters of world trade. Apart from the annual meeting, both the Regional Committees and General Steering meetings will also be held for which the General Manager of ECGA will attend as Chairman and Regional Coordinator for Africa-Middle East and member of the General Steering Committee of the Alliance.
COUNTRY PROFILE OF BUYERS OF OMANI INSURED EXPORTS - KENYA
KENYA is situated in Eastern Africa. The total area of the country is 582,650 square kilometers. The capital city is Nairobi. The population of Kenya is 32,021,856 (2004 est.).
Export Credit Guarantee Agency (SAOC) has insured Omani exports to various products to Kenya including baby diapers, dairy products, foodstuffs, ceramic tiles, sanitary ware items and polypropylene products etc. The total credit limits issued by the Agency to date amounted to R.O.645,770/- (R.O. 473,270/- or almost 73% under letters of credit and remaining 27% R.O.172,500/- are on Open Credit). Since ECGA’s inception, total business declared by policyholders to Kenya were RO.249,746/-. The Agency has not paid any claims on buyers to Kenya yet.
During the year 2004, total Omani exports to Kenya were RO.752,638/-, while imports were R.O.268,355/-. The Omani exports and imports to Kenya for the last 5 years are listed below. Oman has maintained a net trade surplus for the last 5 years.
As per the latest publication of International Trade Finance Magazine January 2005, issue No. 462, in its survey highlights in Kenya states as follows:-
“Half of all shipments are on open account; half are covered with L/Cs. Importers pay promptly, frequently before due date. Banks, however, delay the transfer of foreign exchange three months on average”.
As per D&B COUNTRY RISK INDICATOR, for the month of March 2005 a number of ECAs provide Medium and short term cover for Kenya including US Eximbank, Atradius, ECGD and Euler Hermes - UK.
The maximum terms of payment are (Sight Draft) SD and L/C’s with usual terms of 90-120 days.
Questions and Answers Q- In the event of non-payment of any bill, the exporter is expected to take what action? A- He is expected to take necessary action to minimize the possible loss. Action should be prompt and effective.
Q- What action needs to be taken? A- Action that needs to be taken in any particular case will depend upon the facts and circumstances of the case. The amount of the bill, the reason for non-payment by the buyer, the stand taken by the buyer, the buyer's financial position, the state of goods, market conditions, etc., will dictate the course of action most suitable for minimizing the loss.
Q- In case of insolvency or other causes what action should be taken by the policyholder? A- If non-payment is due to insolvency of the buyer, prompt and adequate action should be taken by the exporter to file his claim with the insolvency court. If any other event occurs which may lead to a loss, the exporter should take appropriate action to avoid or to minimize his loss.
Q- When should the policyholder submits Default Declaration Form? A-Notification of all payments not received within 2 months of their due dates should be sent to the Agency on the Overdue Declaration Form. The declaration should be sent on or before the 10th of every month.
Q- What is expected from the exporter with regard to the recovery? A-
A. The exporter should keep the Agency informed of all actions taken by him to recover amounts in default. The Agency will do all it can to help the exporter in his recovery action and may also suggest certain courses of action. The exporter must act on the basis of such advice.
Q- Will the Agency accepts liability on sale on discount to the same buyer? A- If in order to induce the buyer to accept the goods and/or to pay for them, the exporter allows a discount to the buyer and accepts an amount lower than the invoice value in full settlement of bill, the Agency will not accept liability for the resultant loss.
Hint to Exporter As the purpose of exports is to get payment from the buyer, it is essential that shipments are made to buyers who are creditworthy. The exporter who holds an ECGA policy is expected to select his buyers with care and prudent in order to keep a close watch on their credit standing on a continuing basis. He is the primary appraiser of the credit-worthiness of his buyers. ECGA policy is only an insurance against losses that may be sustained by the exporter due to unforeseen events. It is not a substitute for prudence on the part of the exporter. On the contrary, it is based on the assumption, in fact a condition, that the exporter conducts his business with normal care and prudence.
THE OMANI INSURED EXPORTER BY ECGA AMIANTIT OMAN COMPANY LLC Amiantit Oman Company LLC, was incorporated in 1974. The Company belongs to the Omzest and the Bahwan Groups, the leading business groups in Oman. The Company won His Majesty’s Award for being one of the best five factories in the year 1993, 2000, 2003 and in the year 2004. It has also been selected by the Ministry of Commerce and Industry for the Best Industry Certificate for the years 1995, 1996, 1997, 1998, 1999 and 2001.
The Company is in the manufacture of various types of pipes including (Fibre Cement, UPVC, High Density Polyethylene & GRP), The Glass Re-inforced Polyester (GRP) & Glass Re-inforced Concrete (GRC) Building Products and Roto-moulded products. It is a pioneer of roto-moulded products which include Water Tanks in Islamic designs in capacities ranging from 100 to 2000 USG, Air-Conditioner covers, Litter bins, Planters, Road Cones and many more.
The Company implants quality into each stage of manufacturing of its products. Each Division is committed to compliance with international standards and internal requirements through their Quality Assurance & Quality Control procedures. The Pipes’ and Rotational Moulding Divisions of the Company have been accredited to ISO 9001 and is fully committed to maintaining this status. In addition, the Company’s Environmental Management System has been accredited with ISO 14001.
AS ECGA'S POLICY HOLDER
Please do not
Inform ECGA immediately a loss is threatened
Ignore warning signs of a bad debt
Consult ECGA on every action you intend to take to recover the debt
Incur recovery costs without ECGA approval
Complete your claim form in full and send all relevant documentation with your form
Hang on to any sum recovered-where a claim has been paid most of it belongs to ECGA
Submit your claim in good time
Resell goods without ECGA's approval
Continue vigorous recovery action prior and after payment of your claim along the lines agreed with ECGA
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