Oman's Export Credit Guarantee Agency (ECGA) is recommending that exporters trade on letter of credit (L/C) terms when exporting to Egypt.

The ECGA is amongst several export credit agencies worldwide adopting a cautious approach to Egypt in the light of political, economic and social instability there.

Reassessment

The ECGA says it has reassessed its position on providing new credit insurance coverage for Egypt and isrecommendingthat exporters, even those with credit insurance, should trade on L/C terms.

Moreover, L/Cs should be confirmed by Omani or internationally acceptable banks according to the agency.

The ECGA has also stopped temporarily issuing new limits on open account cover for Egypt.

Negligible exposure

According to the ECGA's general manager, Nasir bin Issa Al Ismaily, the level of the agency's exposure to Egypt is currently negligible, constituting just 2.2 per cent of its total commitments.

Al Ismaily said the ECGA would reconsider its position on Egypt once the situation there improves.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.