Brussels, 07/12/2011 (Agence Europe) - The European Commission decided that a Lithuanian short-term export credit insurance scheme was in line with EU state aid rules, because it requires a market-oriented remuneration and is limited to insurance cover that is currently not available on the private market. The Commission authorised the measure until 31 December 2012. Under the notified scheme, the Lithuanian state-owned company INVEGA will provide additional short-term export-credit insurance coverage to companies established in Lithuania, which are confronted with a temporary insufficiency of cover in the private market for credits in respect of exports to France, Italy, Poland, Spain, Estonia and the United Kingdom. Only financially sound transactions will be eligible for support. INVEGA's share will not exceed 50% of the total cover and exporters will have to retain the responsibility for at least 20% of the underlying risk. During the investigation, Lithuania supplied sufficient proof that the necessary cover is temporarily unavailable on the private insurance market, owing to a lack of insurance capacity. In addition, the premiums required by INVEGA are aligned with those of the private credit insurance market. In particular, the premiums are set at a level that provides an incentive for exporters to have recourse to private insurers once there is again sufficient cover on the private market. Moreover, the measure provides safeguards ensuring that financially unsound transactions and counterparties, that would not obtain cover even under normal market conditions, do not unduly benefit from the measure. (FG/transl.fl)