The webinar discusses managing international credit risk amid economic downturns, highlighting growth opportunities in exports despite the global financial crisis. Various challenges such as limited lending, payment delays, and the need for working capital are explored, along with strategies for mitigating credit risks through export credit insurance and financial practices. The document emphasizes the importance of understanding regional economic conditions and leveraging credit information as businesses navigate both downturns and recoveries.

1. CMA WebinarMANAGING INTERNATIONAL CREDIT RISK DURING THE ECONOMIC DOWNTURNAND THE COMING RECOVERYPRESENTEDFEBRUARY 2010 BY GARY MENDELLMERIDIAN FINANCE GROUP

2. Exporting in the Economic DownturnAmidst 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 ofearlier projections, worldwide marketdemand for goods and services will continueto engender a considerable amount ofinternational trade, and even expansionin some sectors.

3. Purchasing Power in Other CountriesThe 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 degreeby economic interdependence, different cultural,political, and market forces will lead Europe,Asia, Latin America, and other regions eachon their own trajectory during the presentdownturn and into the coming recovery.

4. Credit Demand During DownturnLittle or no lending by local banks

5. Limited access to capital from non-bank lenders

6. Currency exchange/transfer controls

7. Inability to remit cash in advance

8. Bank fees/rates too high to open L/Cs

9. Pushing you and other suppliers as a competitive tactic

10. Need for working capital via longer payment terms

11. Making credit a condition for representation

12. Maintaining in-country supply chains

13. Keeping doors open in strategic markets Export Credit Risks in DownturnVoluntary bankruptcy

14. Involuntary receivership

15. Other forms of insolvency (e.g. just closing the doors)