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Deal makes global joint contracts easier

Deal makes global joint contracts easier article image
Government export credit agency Export Finance and Insurance Corporation (EFIC) has signed reciprocal reinsurance agreements with its French and US counterparts, enabling Australian, French and US companies to participate more easily in joint international contracts. The deal, between EFIC and Compagnie Française d'Assurance pour le Commerce Extérieur (COFACE) and Export-Import Bank of the United States (US Ex-Im Bank) will also see benefits through streamlined financing and administrative efficiencies. "These agreements can facilitate the participation of Australian exporters in large overseas contracts, as they know that EFIC has the ability, along with other export credit agencies, and subject to EFIC’s usual commercial terms, to package the required financing," said Chang Foo, head of Product Management and Risk Transfer at EFIC. "Overseas buyers find reciprocal reinsurance agreements particularly appealing when choosing suppliers because of the one-stop nature of the service - they need only negotiate one set of documents, with the lead export credit agency." The agreement will make multi-sourcing from global supply chains more accessible to Australia exporters as the credit agencies are more likely to approve financing for risks it can share.

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