Credit insurance covers companies against the risk of non-payment of customers to whom they grant delays.
It thus plays an essential role in the financing of economic activity, in securing corporate cash flow and the inter-company credit.
Faced with the health crisis, from April 10, Bercy supported the system through four public credit insurance products:
- CAP,
- CAP+,
- Cap Francexport
- Cap Francexport +.
On June 10, faced with the scale of the consequences of the pandemic, a third amending finance bill (PLFR3) was presented to the Council of Ministers. It includes two new tools called “Cap Relais”.
→ Twelve billion euros of guarantees are injected into the economy in the hope of facilitating the recovery. These financing tools must end on December 31, 2021.
Note: A fourth amending budget was published in the Official Journal on December 1. It adds an additional 20 billion euros to account for the re-containment.
But, the President has promised support for the economy “whatever the cost”, and the lobbies are active so that the government retains public credit insurance guarantee during the year 2121.
So the national federation of timber and materials trading (FNBM) “tweeted” its satisfaction on November 17, following the adoption, as part of the study of the bill by the Assembly, of amendment No. 3463 presented by the Government. Its goal: to keep the State guarantee, and to reinsure the new credit insurance operations that will take place between December 31, 2020 and December 31, 2021.
At the same time, companies seem to have been heard by Bercy. In fact, in a press release dated December 14, Bruno Le Maire, Franck Riester and Alain Griset announced the conclusion of a new agreement with the main French credit insurers: Euler Hermes, Coface, Groupama Assurance-crédit & Caution, Axa Assurcredit.
→ The state-guaranteed credit insurance scheme is extended until June 30, 2021.
One caveat, the extension must be authorized by the European Commission in advance. This agreement is a “copy and paste” of the existing device.
We remember that Bruno Le Maire announced on June 11 an agreement with these same credit insurers. The goal also remains the same: secure, via public funds, all outstanding credit insurance.
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