- Danish government and trade credit insurers reach agreement to extend the support scheme to sustain trade
- Despite Covid-19, Danish businesses continue to benefit from credit limits to secure their commercial transactions
COPENHAGEN, 8 DECEMBER 2020 – The Danish federal government, Euler Hermes – the world leader in trade credit insurance – and the other Danish credit insurers have jointly decided to extend their protective shield for the Danish economy by six months until 30 June 2021. By working alongside the public authorities, Euler Hermes continues to support Danish companies in overcoming this economic crisis of unprecedented proportions. The agreement protects businesses and their supply chains.
Michael Lercke Pedersen, Euler Hermes Denmark CEO: "We are very pleased that we were able to extend the support mechanism by working closely together with the Danish government. Given the persistent pandemic and the unprecedented negative impact of Covid-19, the agreement is an important signal. Trade credit insurance plays a key role in the economy and we as Euler Hermes have committed ourselves to continue to sustain trade in Denmark. Despite significantly increased risks, our customers will be able to continue their business in the coming six months – and this is anything but self-evident in these times.”
and indemnifies a policyholder in the event of an unpaid invoice by a buyer. Thanks to this support scheme, credit-insured companies will be shielded from the deterioration of companies’ credit worthiness brought about by the crisis. This in turn will substantially reduce the domino effect that payment defaults can create across the supply chain. It will also ensure that a number of buyers which experience temporary difficulties due to Covid-19 do not face an additional strain from reduction in supplier credit available to them.
Both domestic and export B2B transactions of Danish companies are covered under the support scheme.