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The purpose of the Communication is to remove such distortions due to State aid in that sector of the export credit insurance business in which there is competition between public or publicly supported export credit insurers and private export credit insurers. The Communication stipulates that marketable risks cannot be covered by export credit insurance that is backed by Member States. Marketable risks are commercial and political risks with a tenor of two years or less on public and non-public debtors in certain countries listed in the Annex to that Communication. However, the Communication allows the possibility under certain conditions to underwrite those “normally” marketable risks on the account of a public or publicly supported export credit insurer. One area in particular which was introduced in 2005 as a temporarily non-marketable area is where the policyholder is a small or medium-sized enterprise.
In December 2008, the Commission adopted the Temporary Framework which introduced a temporary procedural simplification, regarding the demonstration of the unavailability of cover for short-term export credit in light of the financial and economic crisis. This procedural simplification expired at the end of 2011.
The purpose of this Study is to provide analysis to the European Commission on:
On the basis of the above analysis of Options, the Commission considers that on balance the best Option is to continue to have a Communication defining marketable and non-marketable risks, but to consider a restructuring of the system for reviewing and processing. In the Commission's view, the problems identified earlier in this Report clearly demonstrate the need for a fundamental change in the methodology both for assessing changes in the short-term credit insurance market, and for handling the need for any consequent amendments to the definitions of marketable/non-marketable risks in relation to the involvement of ECAs.