The European Commission on Wednesday approved a Swedish scheme to provide export-credit insurance to companies whose exports were hurt by the financial and economic crisis.
Under the scheme, the Swedish state agency EKN would provide short-term export-credit insurance coverage to companies established in Sweden which have been unable to get cover on the private market.
Only financially sound transactions would be eligible for support under the scheme. EKN's share of risk would depend on the buyer's creditworthiness and on the level of political risk relating to the buyer's location.
The maximum coverage would be 90 percent for both commercial and political risk, which means that the exporters would have to assume at least 10 percent of the underlying risk themselves.
The commission found the measure to be in line with its rules on state aid measures to support access to finance in the current financial and economic crisis.
"The Swedish scheme provides exporting firms with the insurance cover they need and, at the same time, contains adequate safeguards to avoid the crowding-out of private companies from the credit insurance market," said EU Competition Commissioner Neelie Kroes.
Source:http://news.xinhuanet.com