Coface Romania estimates income worth €6.5 mln in 2008

An intensification of its commercial credit insurance activity contributed significantly to the increase in turnover of the local branch of the Coface rating agency. The company posted income worth €3 mln in 2007.

Last year, on the basis of market potential, Coface launched commercial credit insurance, to cover the risk of unpaid invoices, and is now testing the market. The company could launch a factoring service for Romanian companies. Coface sold credit insurance worth €140 mln in the first 8 months of activity, and estimates such insurance will increase to €500 mln in 2008.

Coface insures 85 percent of a contract or the entire turnover, with the credit period being up to 120 days from the time the invoice was issued. The company had some 23 clients on the credit insurance segment by the end of 2007 through whom they reached some 2,000 companies.