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BACK             Issue No. 3/2003
 ECGA has been transformed as an Independent legal entity

 ECGA’s Credit Insurance Services reach many Omani exporters

 Domestic Credit Insurance of ECGA obtained reinsurance support from the reinsurers

 Prague Club Meeting held in Minsk, Belarus

 ECGA of Oman signed Framework of Memorandum Understanding with SEC of Slovenia

 ECGA Congratulates two of its policyholders

 A Number of ECGA’s officers attended short-term training

 ECGA approved to indemnified claims to exporters

 Omani non-oil exports revealed

 COUNTRY PROFILE OF BUYERS OF OMANI INSURED EXPORTS

 Questions & Answers

 Hint to Exporter

 Performance of Omani Non-Oil Exports

 ECGA’S contribution in supporting Omani non-oil exports

 Congratulatory Message

 Past News

 
Domestic Credit Insurance of ECGA obtained reinsurance support from the reinsurers
The domestic credit insurance has been introduced to the Omani exporters following the approval of its implementation by the Board of Directors of Export Credit Guarantee Agency (SAOC) has now been endorsed by the international reinsurers under both the Quota Share Reinsurance Treaty with Namur Re as well as under the Excess of Loss Treaty with Coface through ECAs from the Agency’s association within the Credit Alliance Network. This is a great achievement as ECGA of Oman is one the first Arab countries to introduce its domestic credit insurance to credit insured exporters under its existing services.

 
Prague Club Meeting held in Minsk, Belarus
The first meeting of the year of the Prague Club meeting was held in Minsk, Belarus from May to 25th to May 28th 2003, Mr. Nasir bin Issa Al Ismaily the General Manager of ECGA represented the Agency at its meetings. ECGA is an active member of the Prague Club which operates under the auspices of the Berne Union that is the International Union of Credit & Investment Insurers which consists of a number of ECAs from the emerging markets including ECAs from Central and Eastern European countries, Africa, Middle-East and Asia.

 
ECGA of Oman signed Framework of Memorandum Understanding with SEC of Slovenia
Export Credit Guarantee Agency (SAOC) of the Sultanate of Oman signed framework of Cooperation Agreement with SEC of the Republic of Slovenia. The framework of cooperation encompasses various important areas including exchanges of information on debtors / buyers, assistance in recoveries, exchanges of experience in claim payments, training, etc. Slovene Export Corporation of Slovenia as in the case of ECGA of Oman commenced their operations more than 10 years and both the ECAs are members of the Prague Club as well as the Credit Alliance Network.

 
ECGA Congratulates two of its policyholders
ECGA congratulated M/s. Al Khoudh Steel Furniture Co. and M/s. Al Khaleej Polypropylene Products Co. SAOG for winning the “ Small & Medium Sized Enterprises (SME)”and Exporter of the Year “Awards respectively. M/s. Al Khoudh Steel Furniture Co. has availed ECGA Export Credit Policy since 1993. Its insured exports with the Agency are exported to more than 16 countries. M/s. Al Khaleej Polypropylene Products Co. SAOG is one of leading exporters involved in manufacture of polypropylene and has been availing the services of the ECGA very effectively over the years with exports to …..countries.

 
A Number of ECGA’s officers attended short-term training
Two of the ECGA’s Underwriting Officers – Mr. Saif bin Nasir Al-Mahdy and Mr. Ahmed bin Khalfan Al Baloushi attended Customer Relationship Management course organized by Precept Management Consultancy. In addition, Mr. Ahmed Bin Moh’d Al Abdaly the Administration Officer attended a finance course while Mr. Imaad bin Soud Al Harthy the Claims Officer attended a training program on Team Work in Management both courses were organized by the Oman Chamber of Commerce & Industry.

 
ECGA approved to indemnified claims to exporters
ECGA indemnified two respective claims to its policyholders that is Oman Printers & Stationers Ltd. Co. LLC for an amount of RO.14,910.600 to its UK buyer and to Gulf Mushroom Products Co. SAOG for an amount of RO.4,000/= to its USA buyer for non-payments of delivered goods.

 
Omani non-oil exports revealed
As per the latest Foreign Trade Statistics, the total value of Omani non-oil exports in the year 2002 reached to RO.988.3 million compared to RO.843.4 million in 2001 or a remarkable growth of 17.2%. Excluding reports, non-oil Omani exports were RO.261.6 million or 26.5% of the total. For the first quarter of 2003, the value of the Omani non-oil exports (including re-exports) were RO.85.5 million compared to RO.80.4 million for the corresponding period of 2002. An article on performance of Omani non-oil exports and ECGA’s contribution is included on Page 2 of the News Bulletin.

 
COUNTRY PROFILE OF BUYERS OF OMANI INSURED EXPORTS
KINGDOM OF BAHRAIN

Bahrain consists of group of islands in the Arabian Gulf between Qatar and Saudi Arabia. Named Bahrain for the main island is the archipelago, the country includes some thirty small islands. Bahrain covers an area of about 692 square kilometers. The two major cities are the capital Manama which is also chief port and Al Muharraq. Both cities constitute about half of Bahrain’s population. The population of Bahrain is 650,000 inhabitants. Export Credit Guarantee Agency has insured Omani exports to various manufactured products to Bahrain. The total credit limits issued by the Agency to Bahrain amounts to 6739500/- over RO.6.7 million to 197 buyers world-wide. Of the total credit limits issued by the Agency for Bahrain, RO.3004400 million consists of open account and remaining RO.3735100/- under letters of credit. Total business to date declared by policyholders to Bahrain were RO.2.5 million. Bahrain constitutes 4.5% of the total credit limits issued. ECGA has not paid any claims to insured exporters to Bahrain market. During the year 2002 total Omani exports to Bahrain were over RO.8.62 million while imports were 33.25 million.

As per the latest publication of International Trade Finance Magazine (February 2003, issue No.423) in its survey highlights in Bahrain its states as follows :

“Virtually all shipments are on open account. Importers pay locally when due, with banks executing exchange transfers within two months”.


 
Questions and Answers


Q- Why do I need to avail domestic credit insurance from ECGA?
A- As an exporter of Omani produced products, ECGA provides, cover against both commercial and non-commercial risks to your buyers abroad. By availing domestic credit insurance, you ensure that all your receivables are covered by ECGA including domestic sales against the risks of protracted default or bankruptcy by the local buyers as well.

Q-How does ECGA evaluate the credit worthiness of the local buyers?
A-
ECGA being a member of the Credit Alliance Network can obtain credit information report instantly for both domestic as well as foreign buyers. In assessing the risks on local buyers, the Agency evaluates the information accordingly. The assessment include payment records, commercial morality, financial position, credit ratings as well as all other available but relevant information.

Q- What are other benefits to policyholders for availing domestic credit insurance?
A-
Considering the mitigation on the risk on non payment of their receivables, the suppliers will comfortably extend credit to many buyers in the local market considering the risks of non payment are covered by ECGA thus contributing in the management of credit sales effectively and therefore improving on their cash flows as well as the ability to compete with the imported goods which exporters in other countries are credit insured by their national ECAs.


Q- What goods are eligable for cover and percentage of the cover by ECGA?
A-
ECGA would cover any of the products being produced in Oman and sold to a local buyer. The percentage of such cover is 80%.

Q-Who is eligible to apply for domestic credit insurance?
A-
Any of the supplier of the Omani produced goods be it a manufacturer, wholesaler or distributor provided they have availed the Export Credit Policy of ECGA that is they are also insuring their export business of Omani products with the Agency.

Q-What are the premium rates for Domestic Insurance Policy?
A-
The domestic premium rates will vary depending on the credit period agreed with the local buyers. The premium rates will range from 0.6% for 30 days open account, 0.8% up to 90 days and 1% up to 180 days on the actual sales.

Q-Are there any exclusions under the domestic credit insurance policy?
A-
Yes. ECGA will not cover an associated company of the policyholders, private individuals or a public buyer. Moreover, the policy does not cover any disputes between the exporter and the buyer as well as any loss in excess of the credit limit. Furthermore, the policy does not apply to any sales contract under which payment to be received before delivery of goods.

 
Hint to Exporter
“ ECGA provides credit insurance cover to exporters in Oman to more than 85 countries throughout the world. If you are planning to export Omani products, ECGA can also extend cover to your domestic buyers thus protecting the risk of non payment of all your receivables"


 
CONGRATULATORY MESSAGE
ECGA takes this opportunity to congratulate our two credit insured Omani exporters for being awarded with the Omani Awards for Excellence 2002.

“Small & Medium Sized Enterprises (SME)” Award

Al KHOUDH STEEL FURNITURE CO.

Exporter for the Year Award

AL KHALEEJ POLYPROPYLENE PRODUCTS CO. SAOG

The Omani exporters have long recognized and appreciated that one of the 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 for more than ten years.


ECGA is here to help you minimize your risks

BUYER’S RISK
COUNTRY RISK
   buyer’s insolvency/bankruptcy

   buyer’s failure to pay

   buyer refusing delivery of goods


   foreign exchange transfer delay

   import bans or cancellation of import licence

   payment moratorium

   war, civil disorder, natural disasters



Other benefits of service provided to credit insured exporters include domestic credit insurance, post shipment financing through bills discounting by commercial banks as well as issuance of guarantees to commercial banks for pre-shipment financing needs of the exporters.

 
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
, Issue 1/2003
, Issue 2/2003

   
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