Foreign media: With Brazil's interest rates at the top among major global economies, Brazilian importers are turning to China's state-owned credit insurer — China Export & Credit Insurance Corporation (Sinosure) — to maintain trade flows with China.
Facing financing costs exceeding 2% per month (equivalent to an annual rate of about 27%), mid-sized importers are leveraging Sinosure's credit lines to secure deferred payment terms directly from Chinese suppliers, avoiding involvement from domestic Brazilian banks or exhausting their own credit quotas.
Sinosure is one of the world’s largest trade credit insurers, with total insurance coverage reaching $1.02 trillion in 2024, a year-on-year increase of 10%. Among this, short-term export credit alone exceeded $860 billion, accounting for approximately one-quarter of China’s total commodity exports.
The company does not directly transfer funds but provides protection for Chinese exporters, ensuring they receive compensation if foreign buyers default. Typically, buyers have 30 days to settle payments; otherwise, suppliers can file claims.
Original source: toutiao.com/article/1861376861784138/
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