Brazilian govt launches export credit insurance for MSMEs

11 Feb '14

2 min read

The Brazilian Ministry of Finance has launched export credit insurance for micro, small and medium enterprises (MSMEs), including textile and apparel enterprises in the country, in order to encourage entrepreneurs to increase exports.

According to a statement issued by Brazilian Government, the companies eligible to avail the export credit insurance are those with annual revenues of up to US$ 90 million and exports products worth US$ 1 million.

The insurance will be granted on the export of goods and services with the marketing term financing of up to two years operations. The Brazilian Government's goal is to reach $1 billion in guarantees per year by 2018 through this tool.

According to the Ministry, the lack of guarantees is a limitation for these MSMEs, including textile and apparel, to access public and private funding, and with this insurance the Government aims to facilitate exports of various products, including textiles and apparel, from the MSMEs.

The insurance can ensure the financing of exports of the MSMEs conducted through any bank and would increase competitiveness between these MSMEs.

The MSMEs willing to avail the export credit insurance would be required to visit the website of the Brazilian Export Credit Insurance (ESCB) and would need to provide information required by the Public Guarantees System.

Fibre2fashion News Desk - India

More Textiles News - Brazil...