Brussels, 08/03/2011 (Agence Europe) - After an in-depth inquiry begun in 2009 and thanks to information provided by the French authorities, the European Commission concluded, on Tuesday 8 March, that the state guarantee, Aero 2008, established by France to cover the exchange rate risk for aeronautic suppliers, is in line with market conditions and does not therefore constitute state aid within the meaning of European Union law.
The guarantee, managed by Coface, one of the main French credit insurance companies operating for the French authorities, allows French aeronautics suppliers at tier 2 and below to benefit from a state-guaranteed US dollar forward rate for a specific amount of turnover and for a maximum five-year period. To date, the amounts covered represent about €10 million and only four companies have taken up the guarantee.
The Commission had doubts as to whether the premiums paid really did cover Coface's costs in administering the guarantee, the suppliers' default risk, the credit risk involved in the staggered payment of premiums, and a profit margin. Information provided by the French authorities made it possible to quell such doubts and lead the Commission to conclude that the functioning of the Aero 2008 guarantee can be considered as being in line with the market economy investor principle. (F.G./transl.jl)