One of SA's top ferrochrome exporters has found itself in trouble after failing to secure payment for an export deal to Canada.
This was announced by export credit agency Credit Guarantee to illustrate the need for export credit insurance in developed and emerging markets. "Exporters don't have to go to Africa to encounter credit risks these days," said Credit Guarantee exports general manager Gernot Kruger.
"Economies worldwide are not shaping up, and commercial defaults are arising not only from poorer countries, but also from first world countries.”
He said Hernic Ferrochrome was the victim of the unexpected default on payment by an established Canadian importer in June this year. "It learnt that one of its major trading partners in Canada, Slater Steel, had defaulted on an agreement reached with Hernic's representatives in Canada," said Kruger.
