ALMONTE, ON - Atradius, a trade credit insurer based in Almonte, Ontario, has released its Global Economic Crisis Survey based on more than 3,500 interviews with executives and senior managers from companies in North America, Europe, Asia and Australia. The survey was designed to learn business leaders' views on current economic indicators, including:

- Viability of their businesses, industries and financial institutions
- Value of government interventions
- Business practice modifications to maintain cash flow and prevent
payment defaults

"This survey provides us with a current snapshot of the global business community and our domestic economy," said Ian Miller, Country Manager, Atradius Credit Insurance. "Economists' forecasts and insights from policy leaders are helpful, but when it comes to managing risks and uncovering new business channels in this economic environment, it is vital to understand how business decision makers are modifying their practices and planning for a recovery."

Key survey findings include:

Recovery Timeline

- Nearly 71% of global respondents expect the economic crisis
to end in the fourth quarter of 2010. 75% of
Canadian respondents anticipate a rebound in business by the end
of 2010.
- 54% of Canadian respondents believe their
companies' financial position will stabilize at the end of 2009,
and 39% anticipate an improvement in their financial
stability by this year's end. In respect to these numbers,
Canadian optimism shows as they top the list when it comes to
financial stability of their own companies.

Impact on Business Practices - Canadian respondents

- Thirty-four% have suffered a decrease in their access to
financing.
- Canada is among the most optimistic of countries surveyed when
it comes to expectations of failures of large banks and
financial institutions, with only nineteen% reporting an
anticipated increase in failures.
- Thirty-seven% have changed their credit terms, 38%
have increased their use of outsourced collection services, and
47% have increased the frequency of their buyers' credit
reviews.
- Finding new markets or sales channels for products and services
(56%) and placing a heightened focus on customer service
(62%) have proven essential elements for business
continuity, as have gaining access to financing and conducting
staff level reviews.
- Twenty-four% are considering or have begun using credit
insurance as a risk mitigation tool.

Government Stimulus Efforts

- In 17 of the 20 surveyed countries, more than 40% responded
that they have experienced no impact from government initiatives
to stimulate the economy.
- In Canada, 47% think the government's efforts thus far have
largely been ineffective, and 71% think the government
should stimulate economic growth through tax cuts and incentives
with 68% reporting favor with lower interest rates. No
other action was even half as popular as these.

"To effectively manage risk and capitalize on economic opportunities in this market requires an understanding of business leaders' mindset - what actions boost confidence, which in turn inspires activity and the capital gains needed for long-term investments," added Miller. "Recovery rests with our economy's business leaders, which is why these insights and this level of outreach are so significant to our business endeavors related to protecting companies from the risk of catastrophic losses and uncovering new areas of economic opportunity worthy of investment."

The complete Atradius Global Economic Crisis Survey can be downloaded from www.atradius.com.

Source: CNW Group