The European Commission (EC) has approved Romania's EUR 103 million (RON 500 mln) guarantee scheme to support the commercial credit insurance market in the context of the coronavirus pandemic.

"Given the economic impact of the coronavirus pandemic, the risk of insurers not being willing to maintain coverage has become higher. The Romanian scheme guarantees that commercial credit insurance continues to be available for all companies, avoiding the need for advance payments by buyers of goods or services and thus reducing their immediate liquidity needs," the European Commission said in a statement, News.ro reported.

The Commission has found that Romania's scheme is necessary, appropriate, and proportionate to remedy a severe disturbance in the economy of a Member State, under Article 107 (3) (b) TFEU and the general principles set out in the Temporary Framework state aid.

The Commission also found that the scheme was in line with the Communication on short-term export credit insurance.

andrei@romania-insider.com

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