On 16 April 2013, the European Commission approved the Danish 2013 short-term export credit insurance scheme. Similar schemes were introduced in Denmark in 2009 (cf. Related Measures).
The programme involves the provision of short-term (i.e. 180 days - 2 years), single-risk cover export credit for transactions not covered by the private market. The credits will be distributed by the Eksport Kredit Fonden.
The budget of the measure which was supposed to be in force until 31 December 2015 was estimated at 22-30 million USD (150-200 million DKK).
According to the EC, "it has been difficult for exporters to find cover for short-term, single risks from the private market. The lack of export credit insurance exacerbates that the banks are still generally unwilling to cover risks in this segment due to the amounts involved and the duration between 181 days and two years" (par.7, letter from the EC to Denmark, 16.03.2013).
In the same communication, it goes on to say that it "observes that the short-term export-credit insurance is provided by State insurers, and therefore involves State resources. The involvement of the State may give the insurers and/or the exporters a selective advantage and could thereby distort or threaten to distort competition and affect trade between Member State" (par. 34).
On 15 December 2015, the Commission approved the prolongation of the scheme until 31 December 2020.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.