BRUSSELS (Dow Jones)--The European Commission Wednesday approved a Swedish plan to provide export credit insurance to companies that are unable to get cover on the private market, aimed at tackling the effects of the financial crisis on exporting firms.
"The Swedish scheme provides exporting firms with the insurance cover they need and, at the same time, contains adequate safeguards to avoid the crowding-out of private companies from the credit insurance market," competition commissioner Neelie Kroes said.
Under the plan, the Swedish state agency will provide short-term export-credit insurance coverage to companies established in Sweden. Only financially sound applications will be eligible for support under the scheme, the commission said.
The risk premiums will depend on the buyer's creditworthiness and on the level of political risk relating to the buyer's location. The maximum coverage the government agency will accept is limited at 90%, the commission added.
The insurance plan can stay in force until the end of 2010, the commission said.
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