The European Commission Friday cleared a Belgian plan providing short-term export-credit insurance to companies established in Belgium and suffering from a lack of insurance cover from the private market.
The commission has authorized the measure until end of 2010.
"The Belgian short-term export credit insurance scheme provides the appropriate balance between supporting exporters in areas where the market is temporarily not functioning properly and limiting distortions of competition. Ensuring effective export credit insurance is vital for building the basis for a strong economic recovery," said Competition Commissioner Neelie Kroes.
The premiums charged under the public scheme will be aligned with those of the private market, the commission said. Furthermore, the premiums are set at a level that provides an incentive for exporters to have recourse to private insurers as soon as sufficient cover becomes available on the private market, the commission added.
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