| Date: |
23-05-2011 |
| Subject: |
Government Increases State Guarantees For Exporters |
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The Knesset Finance Committee approved last week a NIS 500 million (US$142 million) expansion of export credit for ASHRA – The Israel Export Insurance Corp. Ltd. ASHRA is a company fully owned by the Israeli government aiming to encourage Israeli exports by insuring medium and long term export credit transactions (one to ten years) and investments abroad.
ASHRA is involved in approximately 80% of Israeli medium and long term export transactions to developing countries, mostly in South Eastern Asia, Eastern Europe and South America.
The Knesset Finance Committee approved an addition NIS 500 million in export credit in an attempt to stop exports from losing profitability as a result of a strong shekel. The extra credit will cut back exporters long-term export contract insurance premiums.
Meanwhile the ICIC - The Israeli Credit Insurance Company, a leading credit insurer in Israel which insures sales totaling over US$11 billion annually, in both local and foreign trade transactions, noted it has experienced during the last five months a 42% increase in demand to insure export transactions to Brazil, Russia, India And China – BRIC.
In a press release the company noted that the credit demand to Russia has gone up by 85% compared to the corresponding period last year. China was up 62%, Brazil 48% and India up 25%.
Source : port2port.com
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