European Commission approves German export credit scheme

(Reuters, Brussels, 15 September 2009) European Union competition authorities have cleared a German scheme aimed at unclogging the supply of export credit from crisis-hit banks. Under the scheme, the German public credit institution Kreditanstalt fuer Wiederaufbau would be allowed to buy existing export loans from banks. The lenders would use the cash to grant new export loans to purchasers outside the European Union. The EU competition watchdog, said the plan was in line with guidance provided last October on national measures to help banks hit by the crisis. It authorised the plan for six months. The EU executive has approved similar schemes for other countries in the 27-nation bloc.