New Zealand Export Credit Office
The New Zealand Export Credit Office (NZECO) and Euler Hermes Trade Credit jointly announced today the launch of a top-up cover arrangement to assist New Zealand exporters.
This arrangement enables an exporter to obtain an excess layer of trade credit insurance underwritten by the NZECO. This excess layer of cover may either replace primary cover that Euler Hermes has partially withdrawn on an exporter's buyer, or provide a top-up layer of cover where Euler Hermes has only partially approved the buyer limit that has been requested by the exporter.
The launch of this top-up cover arrangement with Euler Hermes is in direct response to the Government’s decision earlier this year to extend the NZECO's mandate to support the private sector’s provision of short-term trade credit assistance. "The Government is committed to supporting exports and this initiative will help ensure trade opportunities are not missed," Finance Minister Bill English says.
Euler Hermes is the first of the private trade credit insurers to negotiate this type of arrangement. "This arrangement creates a facility for exporters that enables trade to continue, backed by good commercial risk management practices using a unique combination of public and private sector resources," New Zealand's Managing Director of Euler Hermes Burke Steel says. "As a result, trade volumes may be maintained at reasonable levels despite extraordinary risk conditions in numerous export markets."
"We are delighted to have collaborated with Euler Hermes and look forward to supporting their exporting clients via this innovative arrangement", the Chair of the NZECO Advisory Board, Anthony Ractliffe says.
The top-up cover arrangement complements NZECO's short-term trade credit guarantee, which provides trade credit insurance on creditworthy buyers direct to exporter where the private sector is unable to provide any cover.
Euler Hermes is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections. With 6,200 employees in over 50 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of €2.2 billion in 2008. Euler Hermes has developed a credit intelligence network that enables it to analyse the financial stability of 40 million businesses across the globe. The group protects worldwide business transactions totalling €800 billion. Euler Hermes, subsidiary of AGF and a member of the Allianz group, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor’s. View their website at www.eulerhermes.com. Contact: Burke Steel, (649)3542992, [email protected]
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