ENG-2000 — Page 157

COMMERCE AND INDUSTRY

senior corporate executives and decision-makers around the world. The TDC's sophisticated global networking also comprises bilateral business committees for the United States, the European Union and Japan, and 29 Hong Kong Business Associations around the world. In November, the Federation of Hong Kong Business Associations Worldwide was set up to serve as a platform for greater co-operation and business linkages among member associations and other business partners that have a connection to Hong Kong.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC) was created by statute in 1966 to provide insurance protection for Hong Kong exporters against non- payment risks arising from commercial and political events. Its capital is wholly owned by the Government, which also guarantees its maximum contingent liability, currently standing at $10 billion.

The ECIC's mission is to encourage and support export trade through the provision of professional and customer-oriented services. It provides a wide range of insurance facilities to Hong Kong exporters of goods and services trading on credit terms. The Comprehensive Cover Policy, which covers the payment for export, re-export and external trade of goods for credit terms up to 180 days, is the most widely used insurance scheme. Tailor-made policies are also developed to cater for the different needs of exporters in different business sectors.

To extend its continuous support to small and medium enterprises, the ECIC, jointly with financial institutions, introduced the 'ECIC Supported Export Finance for SMEs' in May. The scheme enables SMEs to acquire export financing from financial institutions by assigning the latter as the beneficiary of claims of the ECIC insurance policies held by the exporters, without the requirement of other forms of collateral security.

During the year, the corporation sought to enhance productivity on all fronts. Office automation in general has resulted in a reduction in paper consumption and more effective communication, both internal and external. The implementation of an imaging system has greatly helped enhance productivity and speeded up file management. E-commerce development was also actively pursued with a view to facilitating interactions and transactions with clients and business associates.

The ECIC's total insured business in 2000 amounted to $26.61 billion, representing an increase of 15 per cent over that in the previous corresponding period. Gross premium income grew 23 per cent to reach $136.88 million. Cash claim payments totalled $50.78 million, down by 18 per cent over 1999.

Internationally, the ECIC continued to maintain close co-operation with members of the International Union of Credit and Investment Insurers (Berne Union) through visits, meetings and workshops. As a member agency, the ECIC also took part in the activities of the APEC Export Credit Agencies.

Other Trade and Industrial Organisations

The local business community has a strong and well-established culture in forming trade and industrial associations to represent their interests. The Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Hong

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