European Commission opens consultation on extending temporary State export credit aid

(Lexology, London, 4 October 2021) The European Commission launched a consultation process on 30 September 2021, sending a proposal to Member States on a sixth draft amendment to the Temporary Framework on State aid measures to support member economies in the current COVID-19 outbreak. The Temporary Framework sets out various categories of aid [subsidies?] that can be implemented by Member States, one of which is more flexible rules on short-term export credit (which are not covered by the OECD Arrangement), permitting state aid via export credit insurance to riskier countries, allowing generous financial terms beyond fair market competition. The Commission proposes to extend until 30 June 2022 the temporary removal of all countries from the list of “marketable risk countries” under Annex 1 of the Communication on short-term export credit insurance. Marketable risk countries are those which may have risks due to exchange rate volatility, foreign exchange control regulations, lack of foreign exchange for repayment, etc.