São Paulo – Last Thursday (5th), the Foreign Trade Chamber (Camex), an organization under the Brazilian Ministry of Development, Industry and Foreign Trade, announced measures aimed at broadening the scope of Export Insurance Credit (Seguro de Crédito à Exportação – SCE) by micro, small and medium businesses.
According to a statement issued by the Camex, the top annual revenue range for enterprises to be insured has been raised from 60 million reals to 90 million. The intention is to “fill up a gap in the private market.” Furthermore, businesses are required to post export revenues of up to US$ 1 million per year. The figures concern the period preceding the request placed by the business, that is, if the proposal is made this year, 2011 figures will be considered.
The insurance, according to the statement, will apply both to pre-shipping financing – credit for production of the export good – and to post-shipping – credit for sale of goods or services. The insurance protects exporters against hazards such as importer insolvency, political instability in the target market, natural disasters among others.
Regarding financing guarantees, the Camex announced that for micro and small businesses in the revenue range of up to 3.6 million reals and operations worth up to US$ 50,000, the exporter himself will be able to present them, with no need to obtain a letter of credit. The guarantees accepted will include financial guarantees, such as bonds or surety, or material ones, such as movable or immovable assets.
*Translated by Gabriel Pomerancblum
