Let's go outside the EU together (The Prague Post)

Wednesday, 8. June 2011

Year by year, we feel more intensively how interest of Czech exporters has also been growing in other markets than the European one. The Union market remains the main market and there is no logical reason for changing it but it has no substantial dynamics which will not change in a next couple of years. Other markets are offering greater opportunities and our present offer, primarily in the form of machinery and equipment for a number of industries can fulfil them when supported by export experience, good reputation and, last but not least, by advantageous conditions of insured financing.

We were successful in a strong return to Russia and other CIS countries, undoubtedly also thanks to language and cultural affinities. A number of exporters advanced from positions of sub-suppliers among a select few experienced suppliers of large capital goods and built up a strong competitive position for them. Recently, they have been more successful on other markets as well, e.g. in Vietnam, turkey and in North Africa countries.

Foundation of our activities is insurance of exports financed by medium- and long-term buyer credits to countries with higher level of political and commercial risks. Insurance with state support is regarded as a standard pro-growth and anti-crisis instrument with a relatively quick return of invested funds, which is used for stimulation of economy in all developed countries. Incidentally, it follows from the study prepared by the consultancy EEIP that CZK 1 billion provided by the state for EGAP’s insurance funds generates cumulative benefits for public budgets approximately CZK 1.7 billion during 10 years and average annual employment in form of 1,750 jobs.

This year’s new product in our offer is an option of a full cover of the risk of non-payment of a bank credit for pre-export financing of commercial development of results of science and research for export purposes. This is a credit enabling the financing of the path from a good idea in form of a patent, or industrial or utility model to domestic production designated largely for the export. By way of this above-standard measure, we would like to assist the Czech export with a high level of added value within the bounds of our possibilities.

Vlastimil Nesrsta