Eritrea has become the ninth country to sign up to the only pan-African credit insurance agency The African Trade Insurance Agency (ATI).
Eritrea hopes its entry into ATI will stabilise the country’s banking system by letting banks offset some of its risks through ATI insurance policies. In turn importers will be able to import their goods at lower banking costs and with insured political risks.
The country's main local trading partner is Sudan and main international trading partners are currently Italy, Japan and the United Arab Emirates. Credit products eligible for cover under ATI include bank loans, goods sold on credit terms, letter of credit confirmation or leases.
President H. E. Isayas Afeworki estimated entry into ATI would encourage US$5bn worth of extra trade over the next ten years, as foreign creditors will have increased confidence.
