Exporting out of recession - Business, Innovation and Skills Committee Contents


BRIEFING—DUTCH EXPORT CREDIT INSURANCE SCHEME

  

  On 2 October, the European Commission authorised a Dutch measure to provide export insurance coverage to businesses unable to obtain cover, or partial cover, from the private market as a result of the current financial crisis.

  

  The main features of the scheme are that:

  

    — The State will provide a reinsurance facility to top up cover offered by credit insurers in cases where the existing credit limits have been reduced or new limits given by credit insurers which are lower than the amount requested by the insured company.

  

    — The maximum possible top-up amount provided by the Dutch state is 100% of the credit limit offered by the credit insurer.

  

    — The premiums are aligned to those of the private market, as stipulated by the safeguard clause in the Commission's Communication on short-term export-credit insurance.

  

    — The premiums are set at a level that provides an incentive for exporters to have recourse to private insurers once there is again sufficient cover on the private market.

  

    — The measure presents safeguards to avoid financially-unsound transactions and counterparties, which would not obtain the insurance cover even under normal market conditions, unduly benefiting from the measure.

  

    — The Commission found the measure to be in line with the conditions outlined in its communication published at the end of 2008 on the temporary framework for state aid measures to support access to finance in the current financial and economic crisis.

  

    — In particular, the measure requires market-oriented remuneration and has a specific objective.

  

    — It is authorised until 31 December 2010.

  

30 October 2009

  





 
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