Export credit insurance safeguards foreign trade enterprises

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Category: Ningbo Business

Published: Wednesday, 28 June 2023 16:28

It is quite unexpected for a foreign trade enterprise that a reliable customer would go out of business in a sudden A US business, once a reliable customer of a household heater dealer in Cixi County, has been making purchases in China for over 20 years, with annual sales volume of over 200 million dollars, and has business relations with many enterprises in Ningbo. Recently, when the Ningbo branch of China Export & Credit Insurance Corporation handed over a compensation payment of 1.8 million US dollars to the foreign trade in Cixi County, the person in charge of the enterprise said, "Fortunately, we have been covered by the export credit insurance, otherwise the losses would be unimaginable". 

Since the beginning of this year, the world economic landscape has been complex and ever-changing. Faced with the potential emergence of "black swan events" and "grey rhinoceros events" at any time, Ningbo has given full play to the financial tool role of export credit insurance, increased countercyclical regulation, and fully assisted enterprises in expanding the market, seizing orders, and preventing risks. In the first five months of this year, the Ningbo branch of China Export & Credit Insurance Corporation has cumulatively approved a risk

guarantee fund of 7.9 billion US dollars, a year-on-year increase of 27%. The risk coverage rate is 91.5%, an increase of 5.8 percentage points year on year, setting a new historical high.

Over the first five months of this year, the coverage of import and export credit insurance in the city has steadily expanded, serving over 7,300 customers (including over 5,100 small and micro enterprises), with a year-on-year increase of nearly 20%. With the support of relevant departments, the Ningbo branch has given full play to the financing and credit enhancing role of the insurance, and made good use of  such carriers as "Ningbo Trade Loans", "Single Window", and "Cross-border Financial Service Platform". Over the first five months, it has provided financing and credit enhancement of over 4.1 billion yuan to enterprises in Ningbo.

Some financial solutions will be deepened and implemented to support the  development of cross-border E-commerce and shipping service industry. In the first five months, 720 million US dollars were used to support new foreign trade formats and service trade, accounting for over 60% of the total of the province. Among others, the "cross-border insurance" platform has achieved a cumulative insurance amount of one billion US dollars, and the first insurance policy in China covering overseas warehouse sales risk and cross-border e-commerce platform risk has been  implemented in Ningbo