21 - 27 June 2001

Association of Credit Management set up

Following a number of meetings between Malta’s main automotive and FMCG suppliers, the Malta Association of Credit Management was formed on 1 June 2001, with the primary object of providing a central national organisation for the promotion and protection of all credit interests pertaining to local businesses.
Developments both locally and internationally necessitate an upgrading of the way credit transactions are carried out and through the sharing of credit information and enhancement of professional skills required in this area, the Association is confident that the necessary results will be achieved.
The initial founder members are made up of the main companies in the manufacturing, importation and distribution of food, beverages and personal care sectors as well as automotive importers. In total they represent a market turnover of over Lm200,000,000 and employ over 4,000 people reflecting the importance that has been given to this critical function by private enterprise.
Although the Association has just been formed, a considerable amount of interest has been expressed among the business community at large in Malta, and it is expected that several other enterprises will be joining the Association in the very near future. The Association will initially focus on working groups for the FMCG and automotive sectors and alternative business sectors, selling on credit, will be addressed in due course.
A number of meetings have already been carried out with the banks, while sub-committees have been formed to address four critical areas at the outset :
• Legislation and enforcement
• Credit insurance and factoring
• Distressed Businesses Services
• Credit Rating Systems
A separate premises and secret-ariat is being set up to ensure focus on achieving the objects set out in the statute. Letters advising all the customer base have been circulated to all clients in Malta and Gozo by all the members to inform the market that this is a coordinated effort by all suppliers with an aim of improving the current credit environment.
The first council was elected and the officials and members are :
Geoffrey D. Borg, President; Victor Brockdorff, deputy president; Anthony Bonello; Paul Bonnici; Franco Busuttil; Joseph Chetcuti; Hugh Mercieca; Vince Sladden; and Alfred Triganza.