THURSDAY, MAY 9, 1991
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DEMANDS FOR EXPORT CREDIT INSURANCE ON THE INCREASE
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THE MORE CONSERVATIVE LENDING POLICY OF COMMERCIAL BANKS IN SOME MARKETS, COUPLED WITH THE OPENING OF NEW MARKETS, HAVE INCREASED THE DEMAND FOR SUPPLIER CREDITS AND INSURANCE PROTECTION, THE FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID TODAY (THURSDAY).
SPEAKING AT A KOWLOON ROTARY CLUB LUNCHEON, SIR PIERS SAID THIS IMPROVED BUSINESS PROSPECT HOWEVER CARRIED WITH IT A HIGHER LEVEL OF CREDIT RISKS.
THE
"TO CAPITALISE ON THE INCREASED OPPORTUNITIES AVAILABLE, HONG KONG EXPORT CREDIT INSURANCE CORPORATION (ECIC) WILL IMPROVE ITS ACCESS TO UPDATED INFORMATION ON THE STATUS OF OVERSEAS BUYERS, AS WELL AS ON THE POLITICAL AND ECONOMIC CONDITIONS OF IMPORTING COUNTRIES, SIR PIERS SAID.
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'MEANWHILE, TAKING INTO ACCOUNT THE INCREASED CREDIT RISKS, ECIC WILL KEEP ABREAST OF MODERN UNDERWRITING TECHNIQUES WHILE MAINTAINING A PRUDENT CREDIT MANAGEMENT STRATEGY.
ECIC
"IN LINE WITH THE DEVELOPMENTS IN INFORMATION TECHNOLOGY, HAS UPGRADED ITS COMPUTER SYSTEM, WITH THE INSTALLATION OF MODERN ELECTRONIC DEVICES WHICH ARE CAPABLE OF PROVIDING ON-LINE ACCESS TO STATUS REPORTS AND EXCHANGING BUYER DATA WITH OTHER CREDIT INSURERS.
"ECIC ALSO INTENDS TO MAKE EXTENSIVE USE OF ELECTRONIC DATA INTERCHANGE TECHNIQUES, THEREBY FULFILLING THE OBJECTIVE OF IMPROVING THE EFFICIENCY OF ITS SERVICES TO EXPORTERS.
SIR PIERS SAID IN THE INTERNATIONAL ARENA, ECIC HAD BEEN PLAYING AN INCREASINGLY ACTIVE PART IN THE INTERNATIONAL UNION OF CREDIT AND INVESTMENT INSURERS, OR THE BERNE UNION, OF WHICH IT' HAD BEEN A MEMBER SINCE 1969.
"THROUGH REGULAR EXCHANGES OF INFORMATION IN UNDERWRITING TECHNIQUES AND SO ON WITH MEMBERS OF ALL LEADING EXPORT CREDIT AGENCIES IN THE WORLD AND ATTENDANCE OF REGULAR WORKSHOPS ON VARIOUS TECHNICAL ASPECTS, ECIC HAS BEEN TRYING ITS BEST TO EQUIP ITSELF WITH THE LATEST TECHNIQUES IN EXPORT CREDIT INSURANCE SO AS TO MEET ANY UPCOMING CHALLENGES, HE SAID.
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SIR PIERS STRESSED THAT THE GOVERNMENT WAS FULLY COMMITTED IN SUPPORTING ECIC'S SERVICES TO THE EXPORT SECTOR, ADDING THAT TO COPE WITH ECIC'S ENCOURAGING GROWTH IN BUSINESS, THE GOVERNMENT HAD RECENTLY APPROVED ΤΟ RAISED ITS STATUTORY MAXIMUM LIABILITY FROM $6 BILLION TO $7.5 BILLION.
OBJECTIVE OF
THE ECIC WAS CREATED BY STATUTE WITH THE PROVIDING, ON THE GOVERNMENT'S BEHALF, A WAY TO OBTAIN INSURANCE COVER FOR EXPORTERS AGAINST THE RISKS OF NON-PAYMENT BY OVERSEAS BUYERS FOR GOODS EXPORTED OR SERVICES RENDERED.
/THE GOVERNMENT