United Nations Conference on Trade And Development (UNCTAD) and International Trade Centre - UNCTAD/WTO (ITC)First International Conference on Developing Credit Insurance in Africa and the Mediterranean
PUBLIC INFORMATION SOURCES IN THE MIDDLE EAST Presented By Mrs. Katerina Miltiadou Malek
CREDIT INFORMATION In Developed Countries: • Connected with the Development of Risk Management and • Credit Insurance
CREDIT INSURANCE IN THE MIDDLE EAST • Recently developed • People not yet very familiar with the “Concept”.
CREDIT INFORMATION AGENCIES IN THE MIDDLE EAST • Appeared 30 years ago • NOT widely Accepted by the Business People • Considered to be serving the competition • Business people were Conservative, Secretive, and Uncooperative.
CREDIT REPORTS Enable Credit Insurers and Credit Managers to: • Assess the level of risk involved in dealing with certain Business Entity • Decide whether to trade with a particular business and on what terms • Set the credit limit • Avoid potential bad debts.
Should: Contain accurate and reliable information Be comprehensive Up to date On Time CREDIT INFORMATION REPORTS
A. PUBLIC SOURCES - Company Registries (Governmental) - Chamber of Commerce -Court B. OFFICIAL PUBLICATIONS - Gassettes, etc. C. PRIMARY DATA - Personal Interviews with the Business Key Management, and Observations D. REFERENCES - Newspaper / Magazine Cuttings E. The Market Itself Sources of Information
COMPANY REGISTRIES • Governmental Authorities • Responsible for the registration of all companies/Business Entities Operating in a country.
“COMPANY LAW” • Regulates the registration procedure of the various Business Entities. • Companies should FILE CERTAIN DOCUMENTS Identifying their status. • REGISTERED Companies become Juridical Persons.
Upon Registration Each Company Obtains Its Commercial Registration Number and Becomes a Juridical Person JURIDICAL PERSON
JURIDICAL PERSONS • Behave as Physical persons in business life. Contract, BUY/SELL, SUE and be SUED, Take Decisions, etc.
BEFORE DEALING WITH A REGISTERED COMPANY BE INFORMED ON ITS: 1. Legal Status 2. Owners 3. Management 4. Capital 5. Finance 6. Nature of Activities
TRANSPARENCY OF COMPANY LAWS AND REGULATIONS The Public HAS THE RIGHT TO Access Official Authorities’ Records on Business Entities.
TIME In the Middle East the search with Public Sources is allowed only on written request and at the payment of a substantial fee. • Information might be obtained LATE. • Business deal might be CANCELED. • LATE information will be of No Use.
Results Strengthening of Trust and Confidence in the Business Environment Elimination of Fraud, Payment Delays, Bad Debts. USE OF ACCURATE CREDIT INFORMATION
CONCLUSION • FAST DECISION MAKING IS IMPORTANT • TIME IS CRUCIAL • PROVISION OF INFORMATION ON LINE IS ESSENTIAL TODAY.