Brussels, 22/06/2009 (Agence Europe) - On Monday 22 June, the European Commission authorised a measure adopted by Finland to limit the adverse impact of the current financial crisis on export firms. Under the notified scheme, the Finnish state agency Finnvera plc would provide short-term export-credit insurance coverage to companies established in Finland, which are confronted with a temporary unavailability of cover in the private market, for financially sound transactions. Finnvera´s share of risk would depend on the buyer's creditworthiness and on the level of political risk relating to the buyer's country. The maximum coverage would be 90% for both commercial and political risk, which means that the exporters would have to assume at least 10% of the underlying risk themselves.
The Commission concluded that the measure complies with the conditions laid down in the Temporary Framework for state aid to business during the crisis. In particular, the measure requires market-oriented remuneration and tackles the problem of the current unavailability of short-term export credit insurance cover in the private market. The Commission authorised the measure until 31 December 2010. Competition Commissioner Neelie Kroes said, "The export credit insurance scheme provides Finland with means of supporting firms in the areas where the market is temporarily not functioning properly while, at the same time, establishing safeguards to limit distortions of competition." (O.L./trans/rh)