27^TH NOV 2008

Export Trade suffers blow as export credit insurers withdraw credit insurance

The Irish Exporters Association (IEA) today advised that Irish exporters were finding it increasingly difficult to get credit insurance on their exports to Russia, Central America, South America, and Eastern Europe. There are also many cases of existing cover for exports to these countries being withdrawn by insurers. These markets although more risky, are currently offering some of the best export growth opportunities.

John Whelan, Chief Executive of the IEA stated;

‘’In a period when credit is restricted from the banking sector internationally, any lack of any export credit insurance means that it becomes almost impossible for Irish exporters to trade in these markets.

‘’Under these circumstances the Government must intervene in the market, to provide complimentary cover when the credit insurance industry withdraws cover.’’

He concluded by saying;

‘’If Ireland is to have any chance of recovery in these traumatic times it will be down to the export sector, both foreign owned and the indigenous exporters. But credit support in guaranteeing the exporters efforts must be available.’’

The IEA went on to point out that today the French Government announced that they will provide a state-backed credit insurance scheme to companies left without cover because of rising fear of bankruptcy.

The French Ministry of Finance stated that the Caisse Centrale de Réassurance, a publicly owned insurer of last resort, will ensure that suppliers remain covered against their customers’ potential failure to pay bills. This is the latest in a string of initiatives by the French Government to support business as the economy heads into recession.

In conclusion , the IEA urge the Government to put aside their decades old refusal to enter the export credit guarantee market because of a potential abuse of a Government backed scheme . These are difficult times and exporters need fresh solutions to todays trade finance and market risk problems .

In particular , Irish exporters must not be left out on their own , when exporters in other countries are receiving state export guarantee backing .

END

For further information contact:

John Whelan, Chief Executive, Irish Exporters Association

Mobile: 087 9271243

Email: jfwhelan@irishexporters.ie