2004 REVENUES FROM BAEI ALMOST FIVE-FOLD UP
Revenues from the operation of the Bulgarian Agency for Export Insurance (BAEI) for 2004, including a gross premium income and proceeds from fees, increased almost five-fold, the agency's press centre announced. These are some of the company's inconclusive financial results. 2004 revenues from operation amounted to almost BGN1,246,000 and premium income rose considerably to almost BGN1,100,000, up from a little over BGN262,000 for 2003. Proceeds from operation on behalf of the State totalled BGN453,000, and BGN645,000 came from the agency's activities at its own expense. The main reason for that distribution is the fact that more than 50% of the Bulgarian export is directed to EU countries, and payments under such deals are insured by the BAEI at its own expense. The significant growth of revenues is connected with both Bulgaria's economic upheaval and the activation of the agency's operation. The stability and the trends for development in the economy, as well as the Government's measures for promotion of exports, gave companies an opportunity to plan their financial activities in a more long-term perspective. This results in an increase of their export potential and at the same time they seek various forms to guarantee the payments.On the other hand, the BAEI gradually passes to signing framework insurance policies, including the entire export and sales at deferred payment of a certain company. Premium levels for such policies are much lower and give BAEI an opportunity to accept for insurance payments, which it would refuse individually due to the high risk. This is also the practice of export insurers in almost all European countries. According to forecasts, premium proceeds will be still growing in 2005, Docho Karadochev, Executive Director of the BAEI believes. That expectation is connected also with the approved amendments to the Export Insurance Act and the Ordinance on the Order and Methodology for Specifying the Coefficient under article 10, item 4 of the law.The Council of Ministers has set the highest possible coefficient at 10, which means that the insurance capacity of the BAEI will increase ten times from the previous year.