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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