ANNOUNCEMENT 26 Nov 2009In November 2009, the government of Lithuania announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
the letter from the EC to Lithuania - http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N659_2009
WTO report on G20 Trade Measures (May to October 2010). http://www.wto.org/english/news_e/news10_e/igo_04nov10_e.htm
On 26 November 2009, the Lithuanian authorities notified to the Commission a public short-term export credit insurance scheme.
The private export credit insurers present in 2008 in the Lithuanian market are all international players - the three major monoline credit insurers: Euler Hermes (market share in credit insurance of 36.3%), COFACE (45.7%) and Atradius (18%). The Lithuanian authorities estimate that due to the financial crisis the total export credit insurance supply has decreased by around 20-40%.
The purpose of the Lithuanian scheme is to provide short-term export credit insurance coverage to exporters established in Lithuania who are temporarily confronted with unavailability of cover in the private market for financially sound transactions with buyers in countries listed in the Annex of the Communication as a result of the financial crisis.
The Lithuanian authorities foresee a budget of LTL 100 million (29 million euro) for the scheme. The total amount of the INVEGA guarantees granted to one policyholder and valid simultaneously cannot exceed LTL 5 million (1.5million euro).