Emerging multinationals in Brazil, Russia, India and China (BRIC) have been urged to seek to protect themselves from trade and political risks from their Western counterparts.
The International Credit Brokers Alliance (ICBA) made the call last week during its Annual General Meeting in Johannesburg, South Africa.
“While economies in America and Europe continue to experience headwinds, growth is increasing in Brazil, Russia, India and China (BRIC) and the surging economies in Mexico, Australia, Vietnam, Indonesia, Nigeria and South Africa (MAVINS) as well as Colombia and Turkey.
“The world’s emerging multinationals need to adopt the best practices of more established multinationals regarding trade and political risk, and ICBA brokers are here to help,” says ICBA Operating Chairman Emmanuel Portier.
In a press release copied to ghanabusinessnews.com, the ICBA citing an article published in the Korea Times last month said each of the BRIC countries is predicted to become one of the six largest economic powers by surpassing traditional economic powers, including Germany, England, France and Italy, by 2050, and the MAVINS could easily equal 60 percent of America’s current economy by as early as 2020, over 200 percent by 2050.
ICBA says it offers trade credit and political risk insurance, and reliable, innovative solutions that meet 2011 business requirements.
“ICBA brokers have a financial rather than a basic insurance background. This is a critical differentiator in the industry as trade credit insurance coverage becomes increasingly driven by banking and financial rules, such as European IFRS and Basel II protocols, and to generate an insured’s cash capacity, based on receivables secured, is also a primary concern when building a credit insurance policy that works for a company” says Portier.
By Emmanuel K. Dogbevi