ICIC: US economic situation is beginning to hurt Israeli exporters

Israeli Credit Insurance Company reported last week a 45% jump in unpaid debts by US customers to Israeli exporters in the third quarter of 2008
 
Israeli Credit Insurance Company Ltd. (ICIC) reported last week a 45% jump in unpaid debts by US customers to Israeli exporters in the third quarter of 2008, compared with the corresponding quarter of 2007, to $105 million.
 
ICIC - The Israeli Credit Insurance Company, is a leading credit insurer in Israel. ICIC has been insuring credit since 1957 and today insures sales totaling over $11 billion annually, in both local and foreign trade transactions. ICIC insures credit in 115 countries and the company’s 500 policyholders include many of the leading companies in Israel and their subsidiaries abroad.
 
ICIC covers exporters against the following types of risk:
A. Trade risks - non-receipt of payment from the client due to the client’s insolvency or financial difficulties, in the event of protracted non-payment for 4 or 6 months from the agreed payment date.
B. Political risks - non-receipt of payment due to a political event in the client’s country, such as: war, coup, ban on exporting foreign currency, moratorium, nationalization, cancellation of import license, etc.
 
ICIC defines unpaid debt as more than 30 days arrears beyond the terms of payment in a sale contract between an Israeli exporter and its overseas customer.
 
ICIC predicted last week that credit risk for Israeli exporters to the US will undoubtedly increase in the coming months, following the worsening crisis in the US financial sector and its impact on the general economy.