RTTNews - The New Zealand government is extending its short-term trade credit insurance guarantee for exporters by NZD100 million, the Finance Minister Bill English said Wednesday.
This was mainly to help exporters to maintain their cash flows and keep New Zealanders in jobs during the recession, the minister said. The global downturn affected the availability of both short-term and long-term credit, which left exporters facing canceled orders due to lack of trade credit insurance, English pointed out.
One of the best ways to ensure New Zealand grows strongly out of the recession is to reduce borrowing and consumption and increase exports and investment. Ensuring our exports continue in the face of the global credit crunch will help achieve that, he said.
The initiative was in addition to other measures introduced by the government to make it easier for small and medium-sized firms during the recession such as the NZD500 million tax assistance package announced in February, the Minister noted.
The credit extension scheme follows the Export Credit Office's initial NZD50 million facility for the guarantee, established in February, which is almost completely allocated, the government said.
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