Export Bad Debt Troubles Fujian'S Export Shoe Enterprises

After the outbreak of the financial tsunami, "export bad debt" has begun to plague our export enterprises.

In the first 10 months of this year, the total amount of foreign trade export losses reported in our province amounted to US $51 million 150 thousand, up 8.5 times compared with the same period last year, of which 80% came from the United States.

The proportion of insurance coverage in the province is less than 1%, and many export enterprises can only undertake overseas bad debts caused by the financial tsunami alone.

The salesman of the export enterprise is busy with the promotion of money. He is a salesman of a shoe export enterprise in Fuzhou. The main task recently is not to pull the bill, but to urge the importer to pay on time.

Xiao Chen said that there are still many foreign trade workers who focus on money raising.

Xiao Chen said his company exports large quantities of shoes, and has insured export credit insurance every year for the past 8 years.

Unexpectedly, a group of shoes exported to the United States last month, the United States dealers have closed down, tens of millions of dollars have never come back.

It is reported that from 1 to October this year, 21 cases of Fujian export credit insurance reported losses occurred in the United States, the number increased by 50% compared with the same period last year, and reported losses of 41 million 760 thousand US dollars, an increase of 66 times compared with the same period last year.

There were 110 cases of overseas reported losses, an increase of 49 over the same period last year, and the reported losses amounted to $51 million 150 thousand, an increase of 8.5 times compared with the same period last year.

Latin America and other countries are also beginning to face a crisis of payment.

These reported cases are mainly concentrated in the traditional advantageous foreign trade industries in our province, such as shoes and hats, handicrafts, stone and so on.

At the end of the week, the insurance companies of Fujian export insurance companies have less than 200 insurance companies, less than 1% of the total.

This means that the losses actually incurred by enterprises may be dozens or even hundreds of times of reported losses.

The proportion of insurance coverage abroad is generally 20% to 30%.

With the increasing financial crisis, more and more export enterprises began to take the initiative to lock risks and attach importance to the role of export credit insurance.

In the first 10 months of this year, our province's export credit insurance increased by 26%.

Zhang Wu, deputy director of the Business Administration Office of China export credit insurance Fujian branch, said that as the only policy insurance institution, the company was obviously tight in the second half of this year.

Recently, they worked overtime every weekend to export export credit insurance knowledge to all export enterprises in the province.

Zhang Zhang also told reporters that after the financial tsunami, the traditional mode of thinking of export enterprises has been subverted. In the past, as long as the supply of large enterprises was not big, the investment impulse of large enterprises often led to bankruptcy, which brought disaster to exporters.

Export emerging markets may face the impact of settlement sanctions.

"The most direct benefit of insuring export credit insurance is that the seller can get compensation for damages in time when the buyer is bankrupt and the business is in arrears, and the maximum compensation can reach 80%."

Zhang Wu said.

It is reported that in order to encourage insurance companies in Fujian Province, our province recently introduced a policy of fiscal discount on export credit insurance policy financing, raising the proportion of new export credit insurance premium supported by the end of the year, from the original 20% to 40% to 60%.

These subsidies are borne by the financial sector.

At the same time, it also gives the discount payment for the export credit insurance policy.

In addition, export credit insurance undertook 4 new categories of goods this year, reaching 47, and the number of countries and regions that supported the export of Fujian enterprises increased to 110, an increase of 9 compared with the same period last year. The new countries and regions mainly concentrated in emerging markets such as Asia, Africa and Latin America, including Equatorial Guinea, Ethiopia and Kenya.