ANNOUNCEMENT 06 May 2009In May 2009, the government of Denmark announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Letter from EC to Denmark, 06.05.2009
Press release by the EC
On 6 May 2009, the European Commission approved a Danish short-term export-credit insurance scheme. The programme will provide insurance in cases where the private market insurer has reduced his cover("defined as the ratio between the amount of coverage approved by the insurers and the total amount applied for") by at least 20% from the pre-crisis period and covers less than 60% of the credit limits the exporter had applied for.
The Danish authorities argued the scheme was necessary, as "during the last 6 months, Denmark faced the decrease in the total export volume of 4%. At the same time, the '...' main private credit insurers have withdrawn their insurance coverage of short-term (i.e. below two years) export credit risk by '0-10'% to '30-40'%, depending on the countries. Further reductions are expected by Danish authorities in 2009." (par. 6)
The scheme does not include any budgetary limitations.
The programme came into force initially on 17 March 2009 and was intended to last until 31 December 2010 but it was amended on 29 October 2009 (cf. Related Measures).
The list of potentially affected trading partners and tariff lines is based on Denmark's bilateral trade flows in 2008 with the countries the EU classifies as marketable risk countries (i.e. either OECD or EU member states).