Short term Finnish export credit scheme approved by EU Commission
The proposed export credit insurance scheme by the Finnish government gives the country – according to Joaquin Almunia, EU Commission Vice President in charge of competition – effective means to support firms, including SME’s, in areas where the market is currently not offering insurance cover but providing safeguards to limit distortions of competition
The Finnish state agency Finnvera plc will provide short-term export-credit insurance coverage to companies established in Finland which are confronted with a temporary unavailability of cover in the private market. Coverage will be only available for financially sound transactions. Two categories of risks are currently inadequately covered by private insurers, risk cover for exporting SME with a total annual export turnover of maximum EUR 2 million and cover in cases where the risk is associated to a single export transaction which is not covered under a portfolio insurance from private insurers or in cases where the cover is or includes pre-credit risks. The temporary export credit insurance is authorised by the EU Commission until December 31, 2012.