CGIC will look after short-term credit insurance

WHILE THE government intends pulling out its project finance insurance from the assessor/valuator operation, Credit Guarantee Insurance Corporation (CGIC), this commission agency will still be tending to the vast proportion of the country's trade credit insurance. According to figures released to FTW by executive, Chris Leisewitz, CGIC recorded an insured turnover of R71.4-billion in 2000 - R18.5-bn from export credit insurance and R52.9-bn from domestic credit insurance. According to the Department of Trade & Industry's project manager, Pat Kohlo - who is guiding the formation of the registered insurance company, the Export Credit Agency, which will be handling the medium- and long-term credit insurance cover - the business the government has separated out is an estimated R12-bn. The way Leisewitz sees it, the CGIC has been left with its short-term (up to one year) credit insurance. "The core of CGIC business," he said, "is domestic credit insurance (that R52.9-bn figure) and export credit insurance for consumer goods." And, he added, the short-term export credit insurance turnover is "considerably larger" than the export turnover of capital goods - which fall into project finance insurance. "And," said Leisewitz, "the project export business is ad hoc, not on-going as with consumer goods."