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WEDNESDAY, MAY 8, 1985
+ WE ARE PRIMARILY INTERESTED IN THOSE BUSINESSES WHI CH ARE SEEKING TO EXPAND THEIR TURNOVER, AND THOSE WHOSE FINANCIAL STRENGTH IS SUCH THAT THEY WOULD HAVE DIFFICULTY IN OBTAINING ADEQUATE BILLS DISCOUNTING FACILITIES WITHOUT OUR COVER, HE ADDED.
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THUS THE AIM OF THE CORPORATION, HE SAID, WAS NOT GEARED TO CAPTURING A GIVEN SHARE OF HONG KONG'S EXPORTS, BUT TO PROVIDING PROTECTION AND PROFESSIONAL SERVICES FOR THOSE EXPORTERS WHO GENUINELY NEEDED THEM.
CURRENTLY, INSURED EXPORTS OF BOTH GOODS AND SERVICES WERE RUNNING AT A LEVEL OF SOME $6 BILLION A YEAR, MR YEUNG SAID.
HE SAID THAT IN THE EVENT OF A LOSS THE INSURED EXPORTER WAS INDEMNIFIED UP TO 90 PER CENT OF THE GROSS INVOICE VALUE OF THE SHIPMENT INVOLVED.
AT PRESENT, THE CORPORATION'S BASIC INSURANCE POLICY AFFORDED INSURED EXPORTERS THE PROTECTION OF ITS COVER FOR CREDIT PERIODS OF 180 DAYS FOR POST-SHIPMENT STAGE.
ON POSSIBLE FUTURE INSURANCE FACILITIES, MR YEUNG SAID THAT THE ECIC WOULD SOON BE PUTTING TO THE GOVERNMENT PLANS FOR LAUNCHING A COMPREHENSIVE PRE-SHIPMENT RISK POLICY.
THIS WAS TO COPE WITH THE INCREASING LEVEL OF RISKS AT THE PRE-SHIPMENT, OR MANUFACTURING, STAGE AS A RESULT OF THE CHANGE OF PATTERN BY WHICH OVERSEAS BUYERS HAD BEEN PLACING ORDERS WITH LOCAL EXPORTERS AND MANUFACTURERS.
EXPLAINING THIS, HE SAID THAT WHEREAS FIVE YEARS AGO IT WAS QUITE FEASIBLE FOR A MANUFACTURER TO START MANUFACTURING ONLY AFTER HE HAD RECEIVED A LETTER OF CREDIT, NOW THE MANUFACTURER OFTEN FOUND HIMSELF HAVING TO BEGIN MANUFACTURING AT A MUCH EARLIER DATE AND TO RISK HAVING THE BUYER RENEGE ON HIS CONTRACT.
MR YEUNG ALSO SAID THAT AN INSURANCE COVER MIGHT BE ESTABLISHED FOR CERTAIN DOMESTIC TRADE FLOWS ON ECONOMIC GROUNDS.
THE TRADE FLOWS MR YEUNG REFERRED TO INCLUDED THOSE BY WHICH MANUFACTURERS OF FINISHED PRODUCTS SUPPLIED EXPORT FIRMS WITH THEIR PRODUCTS AND THOSE BY WHICH MANUFACTURERS OF FINISHED PRODUCTS SUPPLIED THEIR PRODUCTS TO OVERSEAS BUYERS.
THE AVAILABILITY OF INSURANCE COVER WOULD ENABLE THE LOCAL SUPPLIER OF GOODS TO SUPPLY THEM ON CREDIT, THEREBY ENABLING THE FINAL MANUFACTURER OR EXPORT FIRM IN TURN TO EXPORT ON CREDIT TERMS.
*THIS MUST IMPROVE HONG KONG'S EXPORT COMPETITIVENESS PARTICULARLY DURING A PERIOD OF DECLINE IN EXTERNAL DEMAND FOR HONG KONG'S MANUFACTURES,+ MR YEUNG SAID.
/NOTING THAT