Australia aids exports to RI

Australia aids exports to RI

CANBERRA (Dow Jones): Australian Deputy Prime Minister and Trade Minister Tim Fischer said Monday that the government has extended credit insurance facilities for exports to Indonesia and Korea by a further four months to July.

"This decision will help Australian exporters to maintain trade with Asia in difficult times and to consolidate market share in these two countries," he said in a statement.

The facilities are provided through the government's Export Finance & Insurance Corp., or EFIC, and were put in place during 1998. EFIC provides credit insurance for Australian exporters against default by overseas buyers. The insurance coverage is provided by EFIC either on commercial terms or in exceptional circumstances where the government will cover exporters on its so-called national interest account.

In 1998, EFIC made available a A$500 million short-term credit insurance facility for exports to South Korea on the national interest account, and provided A$500 million and A$380 million respectively for wheat and cotton exports to Indonesia.

The trade minister also said that credit insurance arrangements for exports to Indonesia will continue to be provided on a case-by-case basis.