Beijing municipal government has signed a strategic cooperative agreement with the China Export and Credit Insurance Corporation. The move will provide more credit to Chinese exporters, thus cushioning the impact of the financial crisis.
A large number of exporters in China is under rising financial pressure as a result of reduced orders and delayed payment of credit accounts. The agreement signed today will provide more export credit insurance to help reduce export risk. It generally covers commercial loses associated with international trade -- insolvency of the buyer, and bankruptcy.
Chen Zexing, Deputy Director of Beijing Commerce Commission said "Beijing's export enterprises have seen export volume declining due to the impact of the financial crisis. Exports dropped 16 percent year-on-year in the five months between January and May. Now we are making every effort to help enterprises cope with the difficulties and boost exports."
Liang Zhidong, Deputy GM of China Export & Credit Insurance Co. said "This is the fifteenth agreement signed with the Beijing municipal government since the financial crisis first hit. We aim to join hands with local governments to boost export enterprises, safeguard their interests, and strengthen their confidence."
China's export credit insurance coverage is expected to hit 10 percent this year, compared to 3 percent in general trade last year. Earlier in May, the State Council released a series of preferential policies to expand the nation's export credit insurance coverage, as well as arranging 84 billion US dollars in short-term export credit insurance.
No comments:
Post a Comment