Berne Union: Demand for capital goods cover still rising

The Berne Union, the industry organisation representing export credit agencies (ECAs) and private insurers, reports that demand for insurance on capital goods exports has increased by 8% compared to 2008. The increase reflects the increasingly risk-averse economic environment and heightened concerns surrounding non-payment by buyers.

However, the union has also seen a sign of recovery, reporting that particularly in the strong Asian economies of China, India and Korea, economic growth has bounced back, and the number of insolvencies is no longer rising. The union also noted that liquidity costs for banks are decreasing, in turn making imports cheaper for these countries.

The observations were made at the Berne Union’s annual general meeting, this year held in Seoul, South Korea from October 12 -16.

During the meeting, a new president and vice-president of the union were elected in. Angus Armour of EFIC (the Australian ECA) was elected as president of the union, succeeding Hidehiro Konno of Nexi (Japan). Johan Schrijver of Atradius (Netherlands’ ECA) was elected to be vice-presisent, succeeding Malgorzata Rutkowska of Poland’s Kuke.

Lindley Franklin from the private US trade credit insurer FCIA is chair of the short-term committee, with Edvard Stang, GIEK (Norway) as vice-chair.
Topi Vesteri, Finnvera (Finland) is chair of the medium-long -term committee, with Emile Matthee, ECIC SA (South Africa), as vice-chair.