DEVELOPING CREDIT INSURANCE IN AFRICA AND THE MEDITERRANEAN UNCTAD/WTO – TUNISIA 23-24 OCTOBER...

DEVELOPING CREDIT INSURANCE IN AFRICA AND

THE MEDITERRANEAN

UNCTAD/WTO – TUNISIA23-24 OCTOBER 2000

REGIONAL CREDIT INFORMATION SYSTEMS FOR

AFRICA

GRAHAM YOUNG BA BSc PhD FRGS FZS

MANAGING DIRECTOR

INTERNATIONAL FINANCIAL CONSULTING LTD

APPROACH

• IMPORTANCE OF INFORMATION• WHAT INFORMATION• RELIABILITY AND CONSISTENCY• WHY DO WE NEED INFORMATION• WHEN DO WE WANT INFORMATION• HOW DO WE NEED INFORMATION• THE PRESENT SITUATION• WAYS FORWARD

VITAL IMPORTANCE OF

INFORMATION

VITAL IMPORTANCE OF INFORMATION

________________________

• TRADE AND INVESTMENT FLOWS DEPEND ON RELIABLE AND UP TO DATE INFORMATION


________________________


• DECISIONS CANNOT BE TAKEN IN AN INFORMATION VACUUM


________________________


• DECISIONS CANNOT BE TAKEN IN AN INFORMATION VACUUM

• NO INFORMATION MEANS RESTRICTED OR DELAYED OR NO FLOWS


________________________

• KEY STAGES TO ENSURE ADEQUATE FLOWS-


________________________


– BANKS AND COMPANIES TO PRODUCE INFORMATION IN CLEARLY SPECIFIED FORMAT AND DETAIL


________________________


– BANKS AND COMPANIES TO PRODUCE IN CLEARLY SPECIFIED FORMAT AND DETAIL

– MONITORING OF COMPLIANCE AND, WHERE NECESSARY, ENFORCING


________________________


– BANKS AND COMPANIES TO PRODUCE IN CLEARLY SPECIFIED FORMAT AND DETAIL

– MONITORING OF COMPLIANCE AND, WHERE NECESSARY, ENFORCING

– ENSURING INFORMATION GENERALLY AVAILABLE IN MOST COST-EFFECTIVE WAY

WHAT INFORMATION

WHAT INFORMATION ________________________

• FINANCIAL STATEMENTS AUDITED TO INTERNATIONAL STANDARDS



• INFORMATION ON RELEVANT ASPECTS OF LEGAL SYSTEM AND RELATED GOVERNMENT POLICY



• INFORMATION ON RELEVANT ASPECTS OF LEGAL SYSTEM AND RELATED GOVERNMENT POLICY

• DETAILS OF COURT JUDGMENTS AND DEBT ENFORCEMENT

RELIABILITYAND CONSISTENCY OF

INFORMATION


INFORMATION________________________

• INFORMATION MUST BE

RELIABLE


INFORMATION________________________


RELIABLE

CONSISTENT


INFORMATION________________________


RELIABLE

CONSISTENT

TRANSPARENT

WHY THE NEED FOR INFORMATION?


________________________

• FOR RISK ASSESSMENT


________________________

• FOR RISK ASSESSMENT

• TO ESTABLISH BUYER’S STATUS


________________________

• RISK ASSESSMENT

– THE CREDITWORTHY BUYER IS ONE WHOM THE UNDERWRITER JUDGES TO BE WILLING AND ABLE TO MEET ITS OBLIGATIONS


________________________

FOR RISK ASSESSMENT

– THE CREDITWORTHY BUYER IS ONE WHOM THE UNDERWRITER JUDGES TO BE WILLING AND ABLE TO MEET ITS OBLIGATIONS

– THE GOOD BUYER IS ONE WHO SHOWS COMMERCIAL MORALITY, GOOD MANAGERIAL CAPACITY, TRADING PRUDENCE, GOOD PAYMENTS RECORD ETC


________________________

• TO ESTABLISH BUYER STATUS

– IN WHICH SECTOR DOES IT OPERATE?

• PRIVATE

• PUBLIC

• SOVEREIGN


________________________

• PRIVATE

• TYPE OF BUSINESS- SOLE TRADER, PARTNERSHIP, LIMITED COMPANY (MULTI-NATIONAL, SUBSIDIARY ETC)


________________________

• PRIVATE

• TYPE OF BUSINESS- SOLE TRADER, PARTNERSHIP, LIMITED COMPANY (MULTI-NATIONAL, SUBSIDIARY ETC)

• TRADE SECTOR- MANUFACTURER, DISTRIBUTOR, WHOLESALER, RETAILER ETC


________________________

• PUBLIC

– STATUS- STATE TRADING ORGANISATION, PUBLICLY-OWNED CORPORATION, LOCAL AUTHORITY


________________________

• PUBLIC


– EXPERIENCE- IN TRADE SECTOR


________________________

• PUBLIC



– SOURCE OF REVENUE


________________________• PUBLIC



– SOURCE OF REVENUE

– INSOLVENCY


________________________

• SOVEREIGN

– ABILITY TO COMMIT THE FULL FAITH AND CREDIT

OF THE GOVERNMENT, ESPECIALLY, AS REGARDS PAYMENT IN FOREIGN CURRENCY

WHEN DO WE WANT THE INFORMATION

WHEN DO WE WANT THE INFORMATION

________________________

• AS SOON POSSIBLE- THE KEY IS FRESHNESS

HOW DO WE WANT THE INFORMATION


________________________

• READILY ACCESSIBLE


________________________


• READILY AVAILABLE


________________________


• READILY AVAILABLE

• AT ECONOMIC COST

THE PRESENT SITUATION

THE PRESENT SITUATION________________________

• GLOBALLY POOR WITH A FEW BRIGHT SPOTS


• MAIN PLAYERS

– CREDIT INFORMATION AGENCIES

– ECAs AND COMMERCIALBANKS

– BUYERS AND SELLERS

– IFIs


• MISSING PLAYERS

• TOO MANY GOVERNMENTS


• WHY TOO MANY GOVERNMENTS ARE MISSING PLAYERS?

• LACK OF POLITICAL WILL


• WHY TOO MANY GOVERNMENTS ARE MISSING PLAYERS

• LACK OF POLITICAL WILL

• LACK OF RESOURCES AND/OR TECHNICAL KNOWLEDGE

WAYS FORWARD

WAYS FORWARD________________________

• ATTRACT AND RETAIN GOVERNMENTS’ ATTENTION

WAYS FORWARD________________________


• ATTRACT AND RETAIN IFIs ATTENTION

WAYS FORWARD________________________


• ATTRACT AND RETAIN IFIs ATTENTION

• SOURCE FUNDING AND TECHNICAL KNOWLEDGE

WAYS FORWARD________________________

• INDIVIDUAL COUNTRY ORGANISATION

• V

• REGIONAL ORGANISATIONS

WAYS FORWARD________________________

• WHO SHOULD OWN/CONTROL/OPERATE?

• OWNERSHIP- THE STATE

• CONTROL- THE STATE (WITH PRIVATE SECTOR ASSISTANCE)

• OPERATE- THE PRIVATE SECTOR

WAYS FORWARD________________________

• THE EFFECTS OF E-COMMERCE

– WILL BECOME A FORCE IN TIME

– B2B WILL DEMAND INFORMATION – FAILURE TO PROVIDE WILL BE POTENTIAL DISASTER FOR THOSE COUNTRIES FALLING SHORT

BUT-

BEWARE FOR IMMEDIATE FUTURE

WAYS FORWARD________________________

• PROGNOSIS

AS GOVERNMENTS INCREASINGLY COME TO RECOGNISE THAT FAILURE TO ENSURE INFORMATION IS AVAILABLE

WILL BE TO THEIR OWN DETRIMENT, SO WILL THEY TAKE NOTICE AND TRY TO DO SOMETHING ABOUT GAPS.

BUT VERY MANY WILL NEED HELP – BOTH FINANCIAL AND TECHNICAL

WE ALL HAVE A ROLE TO PLAY IN THE FUTURE

DEVELOPING CREDIT INSURANCE IN AFRICA AND THE MEDITERRANEAN UNCTAD/WTO – TUNISIA 23-24 OCTOBER...

Documents

Transcript of DEVELOPING CREDIT INSURANCE IN AFRICA AND THE MEDITERRANEAN UNCTAD/WTO – TUNISIA 23-24 OCTOBER...