2009
UK BUDGET MEASURES ON TRADE CREDIT INSURANCE WILL HELP IRISH EXPORTERS - statement by Irish Exporters Association
The announcement in yesterday's UK 2009 Budget that the British Government will provide a �top-up� trade credit insurance scheme up to €5 billion is welcomed by the Irish Exporters Association. It is clearly too early to judge whether the proposals will be a success or not. However, over the past 12 months the reduction in credit insurance and in some instances the withdrawal of it has hurt Irish exporters to the UK and restricted the credit terms available from their suppliers in the UK .This has created major difficulties for a wide range of businesses in Ireland .Hence this move will boost confidence and is strongly supported by the IEA, who recommended a similar scheme to Irish Government back in January of this year.
John Whelan, CEO of the Irish Exporters Association said;
"It is now more vital then ever that the Irish Government revisit the Export Credit insurance scene and initiate a scheme to support Irish business , similar to the one the UK Governments announced yesterday , which although it will help Irish exporters dealing with the UK , but it will also put Irish exporters at a disadvantage on the global stage where we compete with UK producers. "
The IEA pointed to the key reasons why the Government must revisit Credit Insurance as a key trade facilitation measure in the current recession;
} It will create additional credit capacity through medium of insurance.
} The Government initiative will supplement existing private credit insurers.
} It will support existing and new credit insurance policyholders through reinsurance co-insurance scheme
} It would add huge value to existing credit insurance policies and facilitate significant additional / existing trade to be transacted.
} It will give additional confidence to the business community
} It will give a much needed lifeblood to a market starved of credit options
John Whelan concluded by saying;
"Credit insurance is vital for exporters, importers and retailers because the sources of finance, usually banks, insist on it. Without it, suppliers� face the loss of funding that allows them to trade and also increases their risk of loss of income should the retailer collapse and for small and medium sized businesses the inability to make a claim when needed could even result in bankruptcy. It also creates great uncertainty for exporters over the security of supply and damages cash flow management with some suppliers demanding payment upfront. Therefore, today's move by the British Government provides some welcome good news to an industry under pressure, and hopefully now the Irish Government will take courage and introduce a similar scheme here."
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For PRESS COMMENTARY please contact John Whelan at 087 9271243About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and promoted at the highest level.
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