MILAN, Aug 13 (Class Editori) -- The European Commission has approved, within the framework of the EU rules on state aid, an Italian scheme worth 2 billion euros addressed to commercial credit insurances, in the context of the coronavirus pandemic. "It will ensure that all companies can continue to have credit insurance in order to protect their trade, helping them meeting their liquidity needs and carrying out their business during and after the crisis," as the EU Commission Vice President, Margrethe Vestager, Commissioner for competition, has declared.
"We continue to work closely with Member States to ensure that national support measures can be implemented in a coordinated and effective way, in line with the EU standards," she added. Italy has notified to the EU Commission a state guarantee scheme for the reinsurance of commercial credit risks in support of companies affected by the COVID-19 pandemic. The scheme will be managed by SACE, the Italian export credit agency.
Trade credit insurance protects companies that supply goods and services from the risk of non-payment by their customers. Due to the economic impact of the pandemic, as Brussels has noted, the risk that insurers will not be willing to take out such policies has increased. The Italian scheme, with an estimated budget of 2 billion euros, will therefore allow all the companies to continue to have commercial credit insurance, by avoiding that buyers of goods or services might have to pay in advance and thus reducing their immediate liquidity needs.
The EU Commission has also assessed that the measure is in compliance with the State aid rules, in particular with the article of the Treaty on the Functioning of the European Union, which allows the Commission to approve the State aid measures implemented by the Member States aimed at remedying a serious disturbance in their economy. And it has observed that the scheme notified by Italy is in line with the principles set out in the EU treaty and is "well aimed" at remedying a serious disturbance in the Italian economy.
In particular, commercial credit insurers have committed themselves in respect of Italy to maintaining or restoring the level of protection they have been offering since April 1 of this year, despite the economic difficulties faced by companies due to the COVID-19 pandemic; the guarantee is limited only to the commercial credit which has arisen until the end of this year; the scheme is open to all credit insurers in Italy; the guarantee mechanism allows for risk sharing between insurers and the State up to a maximum of 2 billion and the guarantee commission represents a sufficient compensation for the Italian State.
“A measure which is necessary, appropriate and proportionate in order to remedy a serious disturbance in the economy of a Member State" in line with Article 107 (3) (b) of the Treaty on the Functioning of the European Union and with the general principles established in the temporary framework. The Commission concluded that the scheme is in line with the Short-Term Export Credit Notice. On this basis, it approved the measure in accordance with European state aid rules.
(Source:Class Editori)
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