regjeringen.no (10.11.2020) The guarantee scheme was established as a temporary measure in light of the corona situation in order to maintain a sufficient credit insurance offer to companies in Norway. The scheme means that the state covers losses with the credit insurance companies totaling up to NOK 20 billion. kroner, through so-called re-insurance. In return, credit insurance companies must pay for reinsurance and commit to maintaining the business.
The guarantee scheme was established as a temporary measure in light of the corona situation in order to maintain a sufficient credit insurance offer to companies in Norway. The scheme means that the state covers losses with the credit insurance companies totaling up to NOK 20 billion. kroner, through so-called re-insurance. In return, credit insurance companies must pay for reinsurance and commit to maintaining the business.
Will extend warranty scheme
Press release | Date: 10.11.2020
The Government will extend the temporary guarantee scheme for credit insurance until 30 June 2021.
The guarantee scheme was established as a temporary measure in light of the corona situation in order to maintain a sufficient credit insurance offer to companies in Norway. The scheme means that the state covers losses with the credit insurance companies totaling up to NOK 20 billion. kroner, through so-called re-insurance. In return, credit insurance companies must pay for reinsurance and commit to maintaining the business.
- Access to credit insurance is important for maintaining trade in many industries where trading takes place on credit. As a result of the uncertainty associated with the pandemic seems to persist, we now propose to continue the temporary credit insurance scheme for another six months, says Minister of Trade and Industry Iselin Nybø.
- The seafood industry is one of the industries where credit insurance is used a lot, and is important. Continuation of the scheme is therefore important for the industry, says Minister of Fisheries and Seafood Odd Emil Ingebrigtsen.
The credit insurance companies experience that there is still great uncertainty in the markets as a result of the corona pandemic. It is expected that the companies, without government intervention, will reduce their offers to companies in Norway significantly from the turn of the year. In order to continue to contribute to maintaining an adequate credit insurance offer for companies in Norway, the Government proposes in the supplementary issue to the Government's proposal for the state budget for 2021 to extend the scheme. An extension must also be approved by the EFTA Surveillance Authority ESA.
As of August 2020, the scheme covered credit sales of approximately NOK 144 billion from 538 companies. About 54 percent were domestic sales, and about 46 percent were exports. At the same time, compensation payments under the scheme were NOK 13.8 million, and revenues NOK 104 million. Claims payments are expected to increase in the future, also in 2021 for credit insurances granted in 2020.
The scheme is managed by GIEK, but means that companies in Norway can relate to the credit insurance companies.