15 June 2010
MUSCAT -- Export Credit Guarantee Agency of Oman has indemnified a claim for loss lodged by one of its credit insured exporters Oman Ceramics Company SAOG against non-payment of export sales of manufactured sanitaryware items to a buyer in the United Kingdom.
The cheque for the claim amount was handed over to the Representative of Oman Ceramic Company, Akshaya Kumar Tripathy, Acting Finance Manager, Internal Auditor by Nasir bin Issa al Ismaily, General Manager of ECGA of Oman.
Since global financial crisis from the last quarter of 2008 and 2009, all of the ECGA of Oman paid claims to exporters were for buyers in the EU countries like the United Kingdom, France, Greece and Netherlands.
According to the May 2010 issue of the International Trade Finance Magazine, payment defaults reported by European Union (EU) based buyers during a recent six months period remain above 2008 levels.
Nasir al Ismaily commented: "Despite a gradual recovery of global economies, payment defaults risks are still a critical issue in the OECD countries."
Other countries for which the ECGA of Oman has paid claims to exporters included Germany, Italy, and USA.
In the past the agency also paid claims to buyers in the GCC countries including Saudi Arabia, Kuwait, UAE and Qatar as well as Jordan and India.
There has been increasing demand for credit insurance cover by exporters to ECGA of Oman in view of higher level of credit risks from protracted default, insolvency and non acceptance of the goods by the buyers worldwide attributed by credit crunch resulted from global financial crisis.
Huge levels of claims have been paid by ECAs in many other countries to exporters where claim loss ratio have increased significantly.
Al Ismaily stated that ECGA of Oman advises its exporters to be diligent and careful in their selection of buyers. With increases in the number of claims cases, exporters have realised the importance of mitigating both their commercial and non-commercial risks through ECGA's of Oman credit insurance protection worldwide.
Because of its careful assessment of buyers' risks and sound underwriting, the Agency's claim loss ratio has been relatively lower than many other ECAs in the developed markets.
To meet the growing needs for credit insurance cover by the Omani exporters and mitigate higher credit risks, the Agency has issued a total credit limits of RO 254.4 million in the first three months of 2009 compared to RO263.3 million for the corresponding period of 2010. This represents an increases of almost 3.5 per cent.
MUSCAT -- Export Credit Guarantee Agency of Oman has indemnified a claim for loss lodged by one of its credit insured exporters Oman Ceramics Company SAOG against non-payment of export sales of manufactured sanitaryware items to a buyer in the United Kingdom.
The cheque for the claim amount was handed over to the Representative of Oman Ceramic Company, Akshaya Kumar Tripathy, Acting Finance Manager, Internal Auditor by Nasir bin Issa al Ismaily, General Manager of ECGA of Oman.
Since global financial crisis from the last quarter of 2008 and 2009, all of the ECGA of Oman paid claims to exporters were for buyers in the EU countries like the United Kingdom, France, Greece and Netherlands.
According to the May 2010 issue of the International Trade Finance Magazine, payment defaults reported by European Union (EU) based buyers during a recent six months period remain above 2008 levels.
Nasir al Ismaily commented: "Despite a gradual recovery of global economies, payment defaults risks are still a critical issue in the OECD countries."
Other countries for which the ECGA of Oman has paid claims to exporters included Germany, Italy, and USA.
In the past the agency also paid claims to buyers in the GCC countries including Saudi Arabia, Kuwait, UAE and Qatar as well as Jordan and India.
There has been increasing demand for credit insurance cover by exporters to ECGA of Oman in view of higher level of credit risks from protracted default, insolvency and non acceptance of the goods by the buyers worldwide attributed by credit crunch resulted from global financial crisis.
Huge levels of claims have been paid by ECAs in many other countries to exporters where claim loss ratio have increased significantly.
Al Ismaily stated that ECGA of Oman advises its exporters to be diligent and careful in their selection of buyers. With increases in the number of claims cases, exporters have realised the importance of mitigating both their commercial and non-commercial risks through ECGA's of Oman credit insurance protection worldwide.
Because of its careful assessment of buyers' risks and sound underwriting, the Agency's claim loss ratio has been relatively lower than many other ECAs in the developed markets.
To meet the growing needs for credit insurance cover by the Omani exporters and mitigate higher credit risks, the Agency has issued a total credit limits of RO 254.4 million in the first three months of 2009 compared to RO263.3 million for the corresponding period of 2010. This represents an increases of almost 3.5 per cent.
By Staff Reporter
© Oman Daily Observer 2010
