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Friday, July 3, 2009

New Zealand Extends Surety Bond Assistance For Exporters To U.S.
Story from Guide2.co.nz

Wellington, July 1 NZPA - New Zealand companies wanting to sell their goods and services to United States authorities received a welcome boost today.

Finance Minister Bill English announced the Export Credit Office's United States Surety Bonds programme would be extended from $75 million to $100m.

The United States government requires any company supplying it to have a bond with a registered US company for the total amount of its contract.

The bond ensures the US government will get its money back if a company fails to deliver. The bond companies will not usually provide bonds directly to New Zealand companies.

The surety bonds programme underwrites the bonds, allowing New Zealand companies to trade with the United States government.

Mr English said the $25m boost was a "lifeline to several more exporters".

Without the bond programme many New Zealand companies "would have been unable to tender and win multi-million dollar contracts".

Auckland baggage-handling systems operator Glidepath and Christchurch real-time public transport information company Connexionz have both made use of the programme.

Last week, the Government announced an extension of the short-term Export Trade Credit Guarantee.

The $150m scheme provides insurance for exporters whose banks require it.

Increasing exports is one of the best ways to support jobs and help New Zealand out of the recession, Mr English said.