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Atradius and other commercial credit insurers will provide Canadian businesses access to additional credit insurance capacity for their domestic sales through the new CAD 1 billion reinsurance facility of EDC. This additional reinsurance capacity was created subsequent to the Government’s 2009 budget, which granted EDC a two year broadening of its mandate to undertake domestic financing and insurance. EDC does not intend to provide domestic credit insurance directly. This legislation was enacted on March 12, 2009.
When an Atradius policyholder requires a larger credit limit that, for capacity reasons, Atradius cannot approve, this program will enable a supplementary credit limit to be issued to increase the amount of cover available. The arrangements for this additional cover can be realised through the insurance broker in concert with Atradius.
While the use of this $1 billion in new re-insurance capacity will be determined solely by market demand, it could support up to $4 billion in transactions for Canadian companies insured by
Ian Miller, Country Manager Canada of Atradius Credit Insurance N.V. commented, “More restrictive bank financing has made financing business projects and managing receivables very challenging. This refinancing arrangement will help Atradius continue its support of good businesses that can help drive the Canadian economy and can help improve the access of these businesses to financing.”
The additional capacity is meant to insure the gap between the amount of insurance cover requested by the policyholder and the amount of cover granted by the private insurer. It is intended to facilitate transactions that are creditworthy and supported by a viable business model, but for which Canadian companies are having a difficult time finding credit.
“By increasing domestic insurance capacity, Canadian businesses will enjoy greater flexibility to continue trading and commercial credit insurers will have more capacity to insure greater volumes of trade. This could ultimately create more opportunities for Canadian exports as well.” concluded Miller.
About Atradius:
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 42 countries. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services they buy. With total revenues of more than EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.
For further information:
Ian Miller, Country Manager
Tel.: +1 613-256-9134
E-mail:
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