State aid: Commission approves the Estonian short term export credit scheme

(European Commission, Brussels, 20 June 2016) The European Commission has found that the Estonian short-term export-credit scheme was in line with EU state aid rules, and in particular with the 2012 Short-term export-credit Communication. The Commission concluded in particular that the kind of insurance cover provided by the scheme to exporters established in Estonia is currently unavailable in the private market. There is a lack of insurance coverage for small and medium-sized companies (SMEs) with a small export turnover or for single export transactions (i.e. on a transaction-by-transaction basis as compared to insuring the entire export portfolio of a company). This is because private insurers are less interested in this type of transaction. In this context, the Estonian scheme allows the State to cover risks of single export transactions and risks incurred by SMEs with a small export turnover. The scheme is authorised until 31 December 2023.