Featured Product

    EC Authorizes Reinsurance Scheme to Support French Credit Insurance

    July 20, 2020

    Under the EU state aid rules, EC has authorized a French short-term credit reinsurance scheme to support the credit insurance market in the context of the COVID-19 epidemic. Credit insurance protects businesses providing goods and services against the risk of non-payment from their customers.

    Given the economic impact of the COVID-19 epidemic, the likelihood of credit insurers refusing to cover a risk has become higher. The French reinsurance regime, which complements the other measures implemented by France in the field of credit insurance, ensures that credit insurance remains available to all businesses, preventing buyers of goods or services from paying for their purchases in advance, thus reducing their immediate liquidity needs. The estimated maximum budget of EUR 2 billion, for the measure, comes from a reallocation of the budget of EUR 10 billion planned for a previous French credit insurance measure approved by EC on April 12, 2020.

    EC assessed the measure in the light of EU state aid rules, and in particular Article 107 (3) (b) of the Treaty on the Functioning of the European Union (TFEU), which allows EC to authorize State aid measures put in place by member states to remedy a serious disturbance in their economy. The Commission considered that the scheme notified by France was necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in accordance with Article 107 (3) (b) TFEU and the general principles set out in the temporary framework adopted by EC. On this basis, EC cleared the measure under EU state aid rules.

     

    Related Links

    Keywords: Europe, EU, France, Insurance, Reinsurance, Short-Term Credit, Credit Risk, COVID-19, EC

    Featured Experts
    Related Articles
    News

    BCBS Proposes to Amend Rules on Minimum Haircut Floors for SFTs

    BCBS is consulting on two technical amendments to the rules on minimum haircut floors for securities financing transactions, or SFTs.

    January 26, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Framework

    EC launched a targeted consultation on the review of crisis management and deposit insurance framework in EU.

    January 26, 2021 WebPage Regulatory News
    News

    EIOPA Sets Out Principles for Liquidity Stress Test for Insurers

    EIOPA published a paper that sets out the methodological principles of insurance stress testing with a focus on the liquidity component.

    January 26, 2021 WebPage Regulatory News
    News

    BIS Launches Euro Green Bond Fund for Central Banks

    BIS launched a EUR-denominated, open-ended fund for green bond investments by central banks and official institutions, following the launch of the first BIS green bond fund denominated in USD in September 2019.

    January 25, 2021 WebPage Regulatory News
    News

    EBA Announces Stress Test Timeline; ECB Sets Up Climate Change Center

    EBA announced that it will launch the 2021 EU-wide stress test exercise, with the publication of the macroeconomic scenarios on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    BoE Discontinues Form CX on Capital Expenditure and Finance Leasing

    BoE announced that the reporting entities are no longer required to report Form CX after the fourth quarter of 2020 reference period, with the last collection on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    PRA Updates Q&A on Branch Return, Announces End Date of COVID Facility

    PRA published Version 3 of the questions and answers (Q&A) on the Branch Return form, with this version superseding the version published in October 2020.

    January 25, 2021 WebPage Regulatory News
    News

    IAIS Consults on Application Paper on Supervision of Control Functions

    IAIS is consulting on a draft application paper on the supervision of control functions.

    January 25, 2021 WebPage Regulatory News
    News

    ECB President Answers Queries on Application of EU Taxonomy

    ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance.

    January 22, 2021 WebPage Regulatory News
    News

    PRA Issues Direction on Capital Buffers, Finalizes PS1/21 on SM&CR

    PRA published a direction for modification by consent of 5.1 to 5.3 and 5.5 of the Capital Buffers Part of the PRA Rulebook.

    January 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6499