News Forum

HK Export Credit Insured Business Rises

Source: AFX Asia, May 2 2003

HONG KONG (AFX-ASIA) The Hong Kong Export Credit Insurance Corp's (ECIC) total insured business for the year to March rose 6 pct to 28.166 mln hkd thanks to a rebound in overseas consumer demand, especially in the second half of the year, as exports to major markets rose steadily, Comissioner K.K. Cheung said. 

Despite worsening corporate defaults in the overseas markets, ECIC's total cash claims payment declined 57 pct to 37.48 mln. "The results are encouraging indeed and better than our forecast at the beginning of the year," he said.  The US continued to top the list of ECIC's markets covered, contributing13.11 mln hkd in business insured. Germany came next at 3.98 mln, before the United Kingdom at 3.14 mln, Japan at 2.29 mln and Argentina at 2.09mln.  Recoveries for the year stood at 10 mln from 6 mln in the year earlier.  ECIC said recovery work had been particularly successful in China where two recoveries totaling 4 mln were received.  Commenting on the outlook for 2003, Cheung said: "The short Iraq war should not materially disturb the global economy. This is a relief to exporters. 

"On SARS, there is no information to suggest that contact with goods shipped from the affected areas has been a source of infection in humans. Documents and goods coming out of these areas do not pose a risk to public health. Therefore, the chances of import ban are remote. "Cheung added: "Import ban is a standard cover of ECIC policies".  ECIC provides export credit insurance to protect Hong Kong exporters against the risks of non-payment for the export of goods and services. The government, which owns the corporation, guarantees its liabilities up to12.5 bln.