THURSDAY, MAY 9, 1991
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AND
THE GOVERNMENT HAD PROVIDED A TOTAL CAPITAL OF $20 MILLION A 100 PER CENT GUARANTEE OF ALL MONEYS THE CORPORATION WAS LIABLE TO PAY, SIR PIERS SAID.
HE NOTED THAT ALTHOUGH ECIC WAS THE ONLY STATUTORY ORGANISATION RESPONSIBLE FOR PROVIDING A COMPREHENSIVE RANGE OF EXPORT CREDIT INSURANCE SERVICES, IT DID NOT HAVE A MONOPOLY IN THE PROVISION OF SUCH SERVICE.
CERTAIN
"OTHER FIRMS ARE FREE TO ENTER THE MARKET. INTERNATIONAL INSURANCE COMPANIES, INSURANCE BROKERS AND FACTORING COMPANIES HAVE BEEN, OVER THE YEARS, OFFERING ALTERNATIVES SHOULDERING EXPORT CREDIT RISKS TO EXPORTERS.
FOR
"TO ECIC, THIS IS, IN FACT, A WELCOMING TREND SINCE COMPETITION ENHANCES EXPORTERS' AWARENESS OF THE VALUE OF EXPORT CREDIT INSURANCE, GENERATES GREATER DEMAND FOR INSURANCE COVER AND CREATES A LARGER MARKET, HE SAID.
"
**IN THE FACE OF SUCH COMPETITIVE PRESSURE, ECIC WILL CONTINUE TO IMPROVE ITS SERVICES AND FACILITIES AND STRENGTHEN ITS CO-OPERATION WITH BANKS, TRADE AND INDUSTRIAL ORGANISATIONS IN ORDER TO MEET THE CHANGING NEEDS OF THE EXPORT SECTOR IN THE DAYS AHEAD, HE ADDED.
**
LOOKING AT THE INTERNATIONAL ECONOMIC SCENE, SIR PIERS SAID THE 1990'S WOULD BE A DECADE OF CHANGE AND TRANSFORMATION.
"THE PREVAILING INTERNATIONAL ECONOMIC CLIMATE HAS BEEN ONE OF SLOW GROWTH," HE SAID.
"NEVERTHELESS, THE OPENING OF EASTERN EUROPE AND LATIN AMERICA, AS WELL AS THE FORMATION OF A SINGLE EUROPEAN MARKET IN 1992, WILL BRING ABOUT NEW SOURCES OF GROWTH,
"THERE IS ALSO THE RAPID DEVELOPMENT OF INFORMATION TECHNOLOGY AND DRAMATIC POLITICAL CHANGES WHICH HAVE RENDERED THE WORLD A MORE CLOSELY INTEGRATED PLACE.”
SIR PIERS SAID THE IMPACT OF THESE CHANGES ON THE EXTERNALLY- ORIENTED ECONOMY OF HONG KONG WOULD PRESENT BOTH CHALLENGES AND OPPORTUNITIES.
"TO MAINTAIN HONG KONG'S REPUTATION AS AN INTERNATIONAL TRADE CENTRE, MUCH EFFORT HAS BEEN MADE ON THE PROMOTION AND DEVELOPMENT FRONT.
"THIS DIVERSIFICATION HE SAID.
INCLUDES THE OPENING UP OF NEW MARKETS, THE OF EXPORTS AND THE UPGRADING OF PRODUCT QUALITY,
THE ECIC WAS FORMED 25 YEARS AGO WHEN HONG KONG WAS STILL A BUDDING ECONOMY WITH A STRONG NEED TO EXPAND ITS EXPORT TRADE.
OVER THE PAST 25 YEARS, THE NUMBER OF ECIC POLICYHOLDERS HAS INCREASED FROM 250 EXPORTERS SELLING TO 1,000 BUYERS IN 1967 TO ABOUT 2,000 EXPORTERS SELLING TO 15,000 BUYERS TODAY.
THE CORPORATION HAS BEEN GROWING AT AN ANNUAL RATE OF SOME 20 PER CENT IN THE LAST FIVE YEARS. ITS TOTAL INSURED BUSINESS AMOUNTS TO $98 BILLION TODAY.
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