Cofide receives US$50mn to kick-start export insurance

Peru's development bank Cofide has received US$50mn in government funds targeted to finally kick-start the country's export insurance sector, local press reported. According to Peru's Exporter Association (ADEX) chairman Alfonso Velasquez, around 10,000 new companies within the local corporate sector will benefit from the government export insurance aid. Micro and small-sized companies will have 50% of their export operations guaranteed under the terms of the new insurance package with that guarantee rising to 75% in the case of medium- to large-sized enterprises. Peru's exporters blamed the bickering between banks and Cofide for the delay in releasing the US$50mn in government export insurance aid that was originally promised over a year earlier, local daily Diario Gestion reported last month. One of the main points of contention between banks and Cofide was the interest rate exporters with Cofide sponsored insurance would have to pay on export loans, the paper added.