Ashra secured $ 2.8 billion worth of exports a year

by time news

Nissim Ben Eli (Photo by Tamar Mitzpi)

Credit has insured $ 2.8 billion in exports to various countries (other than Western Europe or North America) in the past year, according to a summary of 2021 data compiled by the company that deals with foreign trade risk insurance.

The company’s data show that this is an increase of about 52% compared to 2020 when the corona crisis broke out, which caused a significant decrease in the execution of medium- and long-term transactions backed by credit insurance. Credit insurance is backed by a state guarantee provided by the Accountant General in the Ministry of Finance, and most applications for approvals in principle are approved by a committee headed by the Accountant General.

The main activity of Ashra is through the provision of credit insurance services and the provision of credit to finance large export transactions of Israeli companies, and for relatively long periods of up to 15 years. Credit insurance protects the exporter or the bank giving the credit from non-payment from the customer as a result of financial difficulties or a political event. Credit credit insurance allows banks to provide a credit line for transactions when the insurance policy, backed by a state guarantee provided by the Accountant General, is secure for financing and allows the exporter to receive the payment in advance.

The credit says that government support for exporters, especially at a time when there is uncertainty in the markets due to the continuation of the corona crisis, is helping and supporting the return of the economy to full economic activity. This, among other things, with regard to the creation of jobs and the return of workers from the IDF to which they were expelled, following the previous waves of the corona.

The highest volume of approvals in 2021 – for projects in the Dominican Republic

The data show that most of the deals approved in 2021 were in the areas of health infrastructure, water, education and security. The volume of the average export transaction approved in the past year was about $ 72 million.

The highest level of approvals in principle over the past year has been for export transactions to the Dominican Republic (about $ 550 million), Azerbaijan (about $ 330 million), Paraguay (about $ 280 million) and Senegal (about $ 290 million). Other countries for which large-scale export transactions have been approved are China, Ivory Coast, Kenya and Ukraine.

The company explains that in light of the corona crisis, in many developing countries the economic difficulties and liquidity difficulties have intensified. These difficulties affected the ability of those countries to fund large infrastructure projects. Credit’s credit insurance allows Israeli exporters to offer these countries cheap financing packages and thus execute the implementation of these projects.

Nissim Ben-Eli, CEO of Ashra: “Even in days like theirs, the main problem of many developing countries is the problem of funding. Especially these days, in light of the corona crisis, these countries are suffering more severely from the problem of liquidity and economic slowdown. “They have difficulty, and sometimes are unable, to provide long-term funding for projects in the various areas of infrastructure, even when it is clear that these projects are a catalyst for economic growth and basic livelihoods.”

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