Short-term credit insurance for marketable risks continues
On 21 December 2010, the European Commission granted Finnvera a new, temporary permission to guarantee export transactions in EU Member States and in other Western industrialised countries when the payment term is under two years. The permission is valid until 31 December 2011. The exporter must always first apply for insurance cover from a private provider of credit insurance.
According to the EU rules on State aid, Finnvera – as a public export credit agency – cannot insure risks that private insurance companies are able to cover in a normal market situation. Risk-taking by private credit insurance companies has increased to some extent during 2010, but there is still demand for a public provider of credit insurance in short-term exports. In consequence, the Finnish authorities notified to the European Commission the measure aimed at publicly providing short-term export-credit insurance in cases where cover for marketable export credit risks is temporarily unavailable. This measure has been in force since summer 2009.
The permission now granted by the Commission applies to exports to EU Member States and other Western industrialised countries made by 31 December 2011. Finnvera can only insure the export transactions that private providers of credit insurance do not cover. When granting credit insurance for exports to EU Member States and other industrialised countries, Finnvera applies its normal risk assessment practices, meaning that the buyer must be creditworthy.
Additional information:
Eeva-Maija Pietikäinen, Vice President, tel. +358 20 460 7279
Benita Salenius, Senior Adviser, Head of Team, tel. +358 20 460 7342
Taru Eskelinen, Senior Adviser, tel. +358 20 460 7126
Otto Lindstedt, Senior Adviser, tel +358 20 460 7368
