Israel's Finance Ministry announced an expansion of government export guarantees in an attempt to boost exporters struggling with the strong shekel.
Accountant General Michal Abadi-Boiangiu signed last week the expansion of guarantees for Ahsra - The Israel Foreign Trade Risks Insurance Corporation Ltd and Israeli Credit Insurance Company (ICIC) as approved by the Knesset Finance Committee.
The guarantee for Ashra, a government company, was expanded by US$550 million, and the guarantee for ICIC, was expanded by US$300 million. The expanded guarantees increases Ashra's credit framework to US$2.7 billion, and ICIC's credit framework to US$3 billion.
ICIC is an equal partnership company, jointly owned by EULER HERMES - the largest credit insurer in the world, and Harel Insurance Investments and Finances Ltd. ICIC insures credit in 115 countries and the company’s 500 policyholders include many of the leading companies in Israel and their subsidiaries around the world.
ICIC insurance protects importers and suppliers in the domestic market who sell to their clients on credit. If a client does not pay his debts, whether due to insolvency, financial difficulties or adverse political events in the client’s country that prevent him from paying his debts, ICIC policyholders are covered.
ASHRA a government-owned company is an Export Credit Agency typically found in most developed countries. ASHRA is also a member of the Berne Union of foreign trade risk insurance companies, and has close working relations with international organizations, such as the World Bank, the European Bank for Reconstruction and Development, the International Monetary Fund, embassies and foreign attaches.
ASHRA provides assistance under mutual insurance agreements with other ECA institutions worldwide. Minister of Finance Yair Lapid said in a press release that the agreement with Ashra and ICIC was one of a series of initiatives by the finance ministry to help local exporters. He said that the step would insure more export transactions, making it easier for exporters to deal with global competition.
