Brussels, 22/12/2009 (Agence Europe) - On Monday 21 December, the European Commission authorised the measure taken by Lithuania to limit the harmful consequences of the current financial crisis to its exporting companies. The Commission concluded that this measure was compatible with its temporary framework for state aid designed to promote access to funding against the backdrop of the current financial and economic crisis. In particular, the measure provides for remuneration in line with market conditions and focuses on currently inadequate coverage of risks on the private market. The Commission has authorised this measure until 31 December 2010.
In the framework of the notified regime, the Lithuanian state-owned company INVEGA will offer additional short-term export credit insurance cover to companies established in Lithuania and which are faced with temporary insufficiency of cover on the private market. Only financially healthy operations will be able to benefit from aid under this scheme. The share of the guarantee taken on by INVEGA will not exceed 50% of the total cover and exporters must continue to assume at least 20% of the underlying risk. (L.C./transl.fl)