📋 Tender Overview
The European Commission has approved under EU State aid rules a Danish guarantee scheme to support the trade credit insurance market in face of the coronavirus outbreak.Executive Vice-President Margrethe Vestager in charge of competition policy said The Danish guarantee scheme will help ensure that trade credit insurance remains available to all companies to secure their commercial exchanges. This will protect their liquidity needs and help them continue their activities in these difficult times. We continue working closely with Member States to ensure that national support measures can be put in place in a coordinated and effective manner in line with EU rules.The Danish support measureDenmark notified to the Commission a State guarantee scheme supporting the insurance of trade between companies affected by the coronavirus outbreak.Trade credit insurance protects companies supplying goods and services against the risk of non-payment by their clients. Given the economic impact of the coronavirus outbreak the risk of insurers not being willing to issue this insurance has become higher. The Danish scheme ensures that trade credit insurance continues to be available to all companies avoiding the need for buyers of goods or services to pay in advance therefore reducing their immediate liquidity needs.The Commission assessed the measure under EU State aid rules and in particular Article 1073b of the Treaty on the Functioning of the European Union TFEU which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy.The Commission found that the scheme notified by Denmark is compatible with the principles set out in the EU Treaty and is well targeted to remedy a serious disturbance to the Danish economy. In particular i the trade credit insurers have committed to Denmark to maintain their current level of protection in spite of the economic difficulties faced by companies due to the coronavirus outbreak ii the guarantee is limited to only cover trade credit originated until the end of this year iii the scheme is open to all credit insurers in Denmark iv the guarantee mechanism ensures risk sharing between the insurers and the State up to a volume of approximately 670 million DKK 5 billion and provides an additional safety-net to cover up to approximately 4 billion DKK 30 billion in total if required and v the guarantee fee provides a sufficient remuneration for the Danish State.The Commission therefore concluded that the measure will contribute to managing the economic impact of the coronavirus in Denmark. It is necessary appropriate and proportionate to remedy a serious disturbance in the economy of a Member State in line with Article 1073b TFEU and the general principles set out in the Temporary Framework adopted by the Commission on 19 March 2020 as amended on 3 April 2020 and 8 May 2020.On this basis the Commission approved the measures under EU State aid rules.
