BERLIN, July 10 (Reuters) - The German government has agreed a plan to offer companies guarantees to enable them to get credit insurance, a government source told Reuters on Friday.
A government body responsible for decision-making on state aid had agreed on the plan, which could involve guarantees worth a 'high single-digit billion euro sum', the source said.
Industry groups have complained that credit insurers are cutting back the insurance cover on offer, fearing climbing losses as payment defaults rise.
Under the plan, the state will consider topping up coverage -- for a fee -- if private credit insurers cut the proportion of default risk they cover to significantly less than 50 percent.
Funding for the plan will come from a 115 billion euro government fund set up to help struggling firms.
Credit insurance in Germany is dominated by three players - Allianz's Euler Hermes, Atradius and Coface, part of French investment bank Natixis.
Together they make up around 90 percent of the market and insure 40,000 companies.
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