The EFTA Surveillance Authority clears amendments to the Norwegian trade credit insurance scheme due to the COVID-19 pandemic

COVID-19 pandemic: ESA clears amendments to Norwegian trade credit insurance scheme*

The EFTA Surveillance Authority (ESA) has today approved amendments to a scheme ensuring access to trade credit insurance for enterprises with activity in Norway. The changes will align the scheme with developments in comparable EEA states.

The scheme ensures access to trade credit insurance in order to protect businesses in Norway against losses resulting from credit risks. It contributes to avoiding negative effects of the COVID-19 pandemic through the economy, and thus promotes trade and helps stabilising the economy.

By introducing amendments, Norway aims for the scheme to better cater for the situations that trade credit insurers will face in 2021. In the amended scheme, the state guarantee covers 90% of claim losses above NOK 1.8 billion (EUR 17 million), instead of 100% as in the initial scheme. In return for the higher risk taken by participating insurers, they are allowed to retain 41.5% of the premiums, up from 35%. The changes will align the scheme with developments in comparable EEA states.

The Norwegian Export Credit Guarantee Agency (GIEK), a state agency, has since the launch of the scheme in June issued public guarantees to trade credit insurers, who in turn have committed to maintaining their insurance limits on par with pre-COVID-19 levels.

ESA on 18 June approved the initial guarantee scheme up until 31 December 2020. Given the pandemic’s continued effect on the economy, enterprises operating in Norway are expected to suffer financial losses also in 2021. Therefore, ESA on 12 November approved a prolongation of the scheme until 30 June 2021.

ESA today recognises the need to provide stability for enterprises with activity in Norway, and today’s decision approves the proposed amendments.

ESA’s decision can be found here.

*This is the original title of the press release. The title above has been amended in order to match the e-Competitions format. Individual authors are welcome to provide original independent commentaries on the case law. Articles are subject to approval by the Board of e-Competitions Bulletin before publication based on the Editorial Policy (click here).

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EFTA Surveillance Authority, The EFTA Surveillance Authority clears amendments to the Norwegian trade credit insurance scheme due to the COVID-19 pandemic, 15 décembre 2020, e-Competitions January 2021, Art. N° 98392

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