Exporters get extra cover

PUBLISHED : Thursday, 30 March, 2006, 12:00am
UPDATED : Thursday, 30 March, 2006, 12:00am

The government has increased its guaranteed contingent liability to $15 billion from $12.5 billion, enhancing protection for the city's exporters, according to the Hong Kong Export Credit Insurance Corp (ECIC).

'Despite the encouraging performance of Hong Kong exports in recent years, there are still uncertainties in major export markets,' ECIC commissioner Cheung Kam-kay said.

'With the growing demand for insurance cover, it is important for the ECIC to increase its underwriting capacity.'

He said the ECIC's underwriting capacity was close to saturation. As of the end of last month, the aggregate maximum liability of the ECIC was $11.77 billion, or 94.2 per cent of the contingent liability for the previous cap of $12.5 billion guaranteed by the government.