The Hong Kong Export Credit Insurance
Corporation

The Hong Kong Export Credit Insurance Corporation (ECIC) was created
by statute in 1966 to provide insurance protection for Hong Kong
exporters against non-payment risks arising from commercial and political
events. Its capital is wholly-owned by the HKSARG, which also
guarantees its maximum contingent liability, currently standing at $10
billion.

The corporation's mission is to encourage and support export trade
through the provision of professional and customer-oriented services. It
provides a wide range of insurance facilities to Hong Kong exporters of
goods and services trading on credit terms with overseas buyers and
clients for credit periods normally up to 180 days. The most popular
facility is the Comprehensive Shipments Policy which covers export and
re-export of goods from the date of shipment. The External Trade
Shipments Policy, which covers the export of goods manufactured
outside Hong Kong and delivered direct to the buyer, ranks second.

To improve on its existing services, the ECIC developed and launched in
1997 a new Comprehensive Cover Policy and a new Small and Medium
Enterprises Policy which represent a more convenient package with
simplified documentation and procedures. Medium- and long-term cover
for credit periods up to five years or beyond for export of capital goods
is also available.

To support the development of the service industry which has become
predominant due to the structural change of the Hong Kong economy, the
ECIC has developed various policies to meet the specific needs of
different service sectors. The Freight Forwarding Services Policy and
Advertising Services Policy are two such examples.

The ECIC's total insured business in 1996-97 amounted to $20.11 billion,
representing an increase of 14 per cent over that in 1995-96. Gross
premium income grew 9 per cent to reach $108.39 million. Despite higher
claims, the ECIC was able to achieve a surplus of $17.25 million for the
year.

Internationally, the corporation continued to maintain close co-operation
with members of the International Union of Credit and Investment
Insurers (the Berne Union) through visits, meetings and workshops. The
ECIC was honoured to be the first credit insurer in the world awarded
the ISO 9002 certification during 1996-97.

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