EDC and Credit Insurance Industry to Bring 1 Billion in New Credit to Domestic Market



    OTTAWA, May 21 /CNW/ - Atradius Credit Insurance today announced its
intention to collaborate with Export Development Canada (EDC) in its
facilitation of up to CAD 1 billion in new domestic credit to help Canadian
companies.
    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 Canada's commercial credit
insurance providers.
    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:

For further information: Ian Miller, Country Manager, Tel: (613)
256-9134, E-mail: ian.miller@atradius.com


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