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CMA Webinar MANAGING INTERNATIONAL CREDIT RISK DURING THE ECONOMIC DOWNTURN AND THE COMING RECOVERY PRESENTED FEBRUARY 2010 BY GARY MENDELL MERIDIAN FINANCE GROUP
Exporting in the Economic Downturn Amidst the challenges in the world’s present economic situation, there are also opportunities for growth. The global financial crisis is not affecting every sector of the real economy. Many companies will continue to grow and in many cases their growth will come from export sales. While total export volumes may fall short of earlier projections, worldwide market demand for goods and services will continue to engender a considerable amount of international trade, and even expansion in some sectors.
Purchasing Power in Other Countries The U.S. economy is projected to continue declining for some time before it begins to recover, but with just five percent of the world’s population and less than one-quarter of global GDP, the U.S. is not the only country with purchasing power. While all countries are linked to some degree by economic interdependence, different cultural, political, and market forces will lead Europe, Asia, Latin America, and other regions each on their own trajectory during the present downturn and into the coming recovery.
Credit Overview by Region Europe Latin America Northern Europe Mexico Southern Europe Brazil Eastern Europe Chile, Colombia , Peru Argentina, Ecuador Asia Venezuela, Bolivia Japan Central America China India Africa Pacific Rim Sub-Saharan Southern Africa Middle East Saudi Arabia/UAE Turkey Israel
protects foreign receivables against virtually all commercial/political non-payment risks
Export Credit Insurance - Update While constrained by increasing claim activity, contracting reinsurance capacity, and other factors engendered by the economic downturn, export credit insurance underwriters remain active and to the extent possible are rising to the challenge of continuing to support international trade credit.
No insurers have entirely exited the trade credit market
Several insurers have expanded their trade credit products