In an article in the Business Report focusing primarily on the possibility of a rates cut next month, Credit Guarantee Insurance Corporation senior economist Luke Doig commented on the decease in claims against the company :

“….if our claims gauge is correct as a leading indicator, a possible 50 basis point cut in interest rates next month, together with a 15 cents per litre cut in fuel prices next week, may yet provide impulse to overall demand while also assisting to improve current business cash flows,” he said.

The company said its threatening losses or overdue advised accounts by policyholders fell 28.4 percent in number and 21.9 percent in value in the first six months of 2010 compared to the first half of last year.

“We remain hopeful that this improving trend in potential claims is further corroboration of an improvement in overall business conditions which in turn will lead to an eventual decline in business failures,” commented Doig.

There have been, according to Credit Guarantee, 99 construction closures in the first five months of 2010 compared to 88 in the same period last year as projects linked to the World Cup ended.

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