Ex-Im Bank Will Reinsure Coface North America’s Issue of Export-Credit Insurance
October 22, 2012
(Ex-Im Bank)
WASHINGTON, D.C., Oct. 22, 2012 – The Export-Import Bank of the United States
(Ex-Im Bank) announced today an agreement with trade credit insurer Coface North
America Insurance Company to provide reinsurance. The Bank introduced its
reinsurance product two years ago in order to help U.S. small business exporters
obtain short-term export credit. Since then, participating private-sector
insurers of export credit are eligible to apply for Ex-Im's reinsurance.
The Bank's reinsurance product is designed to increase overseas sales by
American small- and mid-sized businesses. Participating insurers use reinsurance
to originate and underwrite transactions that otherwise might be proscribed
because of credit-limit caps on foreign countries or on buyers regarded as
higher risk. Under terms of the agreement, Ex-Im Bank will provide reinsurance
for export-credit insurance policies written by Coface North America Insurance
Company to protect the accounts receivables and cash flow of American companies
exporting goods and services overseas.
"With Ex-Im Bank's trade finance insurance from Coface, American exporters now
can access new markets for which insurance previously was unavailable or
prohibitive in cost," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"Our partnership with Coface will result in more U.S. export sales, and more
export-related jobs for Americans."
Trade credit insurance from Coface, and reinsurance from Ex-Im Bank will enable
American companies to increase the amount of credit they offer their overseas
customers, who therefore can increase their purchases of American goods and
services. Coface North America Insurance Company and the global Coface Group are
active in trade receivables management, business intelligence and insurance
services, with operations in 66 countries and 35,000 insurance clients. Ex-Im
Bank is a self-sustaining federal agency that provides export financing to
strengthen U.S. exporter competitiveness and to help create and maintain U.S.
jobs.
"International trade has been a bright spot for the U.S. economy and American
jobs in the last few years. Our partnership with Ex-Im Bank is designed to
support U.S. exports and competitiveness. Trade credit insurance protects one of
the most valuable assets that a company has – its accounts receivable. The
reinsurance program will enable more American companies to take advantage of the
protection that credit insurance provides," said Michael Ferrante, CEO of Coface
North America Insurance Company.
Trade finance insurance is a useful tool for exporting companies. In addition to
protecting accounts receivable and ensuring cash flow, it enables companies to
offer customers more favorable terms and accept larger orders. Without trade
credit insurance, companies are vulnerable to economic, social and political
threats that inhibit their ability to succeed in international markets. For more
information about trade credit insurance, contact Walter Kosciow at (202)
565-3649, or visit www.exim.gov.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.