Credit insurance for Portuguese exports to Angola fully subscribed

20 April 2007

Lisbon, Portugal, 20 April – The line of credit insurance for Portuguese exports to Angola has been fully subscribed, with the construction industry absorbing 80 percent of the 300 million euros made available the chairman of credit insurance company, Cosec (Companhia de Seguro de Crédito) said Thursday in Lisbon.

Speaking on the sidelines of a conference organized by the Portuguese-French Chamber of Commerce, the chairman of the credit insurer responsible for the operation said that they continued to receive requests, but there was “no indication” that the credit line would be increased.

In March 2007, the total amount insured as part of the line was 321.2 million euros, of which 84 percent (269.2 million euros) were used by construction companies said José Miguel Gomes da Costa.

Credit insurance covers non-payment of the sale of goods and services and in this case, guarantees that Portuguese exporters will receive the value of their sales to Angola in situations of bad debts.

In 2004 Portugal and Angola set a limit of 100 million euros for covering credit risk and tripled that figure last year.

Through its Finance Ministry Angola guarantees the payment and transfer of the amounts relating to exports carried out under the terms of the Convention.

Cosec is 50 percent owned by bank BPI, and 41 percent owned by the world’s largest credit insurance group, Euler Hermes. (macauhub)