Credit insurance for exports in great demand

Since the end of June, Finnish export companies have applied for Finnvera’s guarantees for their exports to EU Member States and Western industrialised countries. This became possible when the European Commission gave Finnvera temporary permission to grant credit insurance for exports to industrialised countries also when the payment term is under two years. Most of these short-term credit insurance policies have been granted for exports to the UK, Sweden, Spain, Italy and France. Among business sectors, the timber industry has been the most interested in this type of insurance.

Companies normally obtain their short-term credit insurance from private credit insurers. Because of the financial crisis enterprises in many EU Member States hoped that public export credit agencies, such as Finnvera, would temporarily grant them insurance policies. Enterprises must still primarily apply for insurance from a private credit insurer. The two private credit insurers operating in Finland are Atradius Credit Insurance N.V. and Euler Hermes.

Finnvera can only insure export transactions that are not covered by private credit insurers. The permission granted by the Commission is valid for export deliveries until 31 December 2010.

The opportunity given to Finnvera to provide credit insurance for short-term export transactions to EU Member States and Western industrialised countries is an important public measure to assist Finnish export companies.

“Credit insurance is useful for the exporter, for instance, when a private credit insurer has terminated its own credit insurance policies and there is the risk that exports to an established customer with a good payment history will cease or diminish because of lacking credit risk protection. With the help of this temporary permission, we are able to fill market gaps in service supply and to open opportunities for international exports by Finnish enterprises,” says Senior Vice President Annamarja Paloheimo of Finnvera.

Guarantees have been in demand for exports to a total of 31 EU Member States and other Western industrialised countries. The total value of the guarantees granted is EUR 32 million.

Additional information:

Annamarja Paloheimo, Senior Vice President, tel. +358 20 460 7267
Tuukka Andersén, Director of Finance, tel. +358 20 460 7351
Benita Salenius, Senior Adviser, Head of Team, tel. +358 20 460 7342