AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 6 March 2013, the European Commission approved the Finnish short-term export credit insurance scheme.
The programme involves the provision of short-term export credit for transactions not covered by the private market. The credits will be distributed by the national export credit agency Finnvera.
The budget of the measure which was supposed to be in force until 31 December 2015 was not provided. However, a maximum liability of 12.5 billion EUR was set.
According to the EC, "it has been difficult for exporters to find cover for single risks from the private market. Also, enterprises with a small export portfolio do not have a similar access to the private credit insurance market as the larger companies. If the portfolio covered is very small or the exporter only applies insurance for a single transaction, the private market is not often able to offer cover as the supply of credit insurance connected to single buyer/export transaction has been very limited by the two private insurers in Finland." (par. 4, letter from the EC to Brussels, 06.03.2013)
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. 33).
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.
⚑ Please report this page in case you detect an inaccuracy in its content.