During the civil uprisings in the Middle East and North Africa in the spring of 2011 EKF suspended the issuing of new guarantees to a number of countries where the disturbances made it very uncertain to do business. EKF now reopens for guarantees for business transactions in Tunisia and Egypt on normal terms. After breaks with the former regimes the countries are considered to be so stable that doing business there is possible once again. EKF’s improved coverage is a result of this. From now on EKF is able to issue guarantees for short term and medium/long term transactions in the two countries.
”Tunisia and Egypt are experiencing a positive development, and the security situation is now so good that business can flourish again. This is good news, above all for the populations of the two countries but also for Danish exporters who wish to enter the North African markets or for the Danish exporters who have already resumed their activities there”, says Thomas Blomgren-Hansen, head of EKF’s department for Countries and Banks.
Egypt and Tunisia are experiencing economic growth and hold good potential for Danish export companies. The Egyptian market in particular – as the region’s biggest market – offers good opportunities.
Peace of mind with guarantees
Availability of cover does not mean that there are no risks involved in export to Tunisia and Egypt. It means that doing business in the two countries is once again possible and that is great progress. EKF, however, assesses the payment risk, i.e. the risk that a foreign buyer of Danish goods is unable or unwilling to pay, to be above-average for both countries making it essential to secure your business transactions with customers in Tunisia and Egypt. This can be done for instance with a guarantee from EKF.
Already in April 2011, EKF resumed part of our cover for Tunisia and Egypt, but only for short term transactions and including a low overall limit of the amount of guarantees that EKF would issue for business transactions in the two countries. EKF now returns to normal terms of cover for the two countries with guarantees for long and short credit periods and a considerable increase in the limit on our maximum guarantee exposure. The difference in our cover policy before and after the disturbances is that EKF needs a bank guarantee or a letter of credit to cover Egyptian buyers and, in the case of Tunisia, the requirements of the creditworthiness of the buyer are more restrictive than before the disturbances. Cover is still suspended for other countries from the “Arab Spring”
EKF continues our suspension of new guarantees for business transactions in Bahrain, Syria, Libya and Yemen. The situation in the four countries remains unresolved and business opportunities are limited. EKF, however, monitors the development closely and will adjust our risk assessments accordingly so that we are ready to issue guarantees when the situation stabilises. See EKF’s risk assessments of most countries in the world under EKF’s country information