ANNOUNCEMENT 06 Nov 2009In November 2009, the government of Belgium announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Letter from the EC to Belgium, 6.11.2009
Press release by the EC
Letter from the EC to Belgium, 30.05.2011 (in French)
On 6 November 2009, the European Commission approved a Belgian short-term export-credit reinsurance scheme called BELGACAP, which will temporarily offer reinsurance of export credit insurance policies at above market rates.
The maximum credit limits were set at 3 million EUR for large companies and 1.5 million EUR for SMEs. The quarterly budget of the scheme is estimated at 300 million EUR.
According to the Commission, "because of the crisis, they 'Belgian private credit insurance companies' are facing requests for higher compensation than in the past, which is forcing them to adopt a more cautious approach. However, while there has been a deterioration in the general situation since the start of the international financial crisis, the Belgian authorities consider that the reassessment of acceptable risk levels by credit insurance companies is further contracting the supply of insurance cover. The credit insurance companies are therefore over-reacting to the crisis, which justifies intervention by the public authorities. "
The scheme was initially introduced on 9 July 2009 and lasted until 31 December 2010 but was prolonged by state aid case SA.32159 for another year (cf. Sources).
The list of potentially affected trading partners and tariff lines is based on Belgium's bilateral export flows in 2008 with jurisdictions the EU classifies as marketable risk countries (i.e. either OECD or EU member states).