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The state support scheme has achieved its goal - supply chains stabilised and trade supported during difficult times

Copenhagen May 6, 2021 - Following extensive discussions, EKF Danmarks Eksportkredit, which is owned by the Ministry of Industry, Business and Financial Affairs, and the private trade credit insurance companies have agreed that the state support scheme will not be extended and thus expires on 30 June 2021.

"We are pleased and proud that Euler Hermes has been part of the state support scheme. We have played an important role in the success of the support scheme by offering additional cover to our customers. The scheme achieved its goal of stabilizing supply chains and supporting trade, while there was increased financial uncertainty,”says Rik Heijne, CEO of Euler Hermes Denmark.

Trade credit insurance protects B2B companies against the risk of non-payment and indemnifies a policyholder in the event of an unpaid invoice by their customers (‘the buyer’). Thanks to the state support scheme, credit-insured companies have been shielded from deterioration in their buyers’ credit worthiness caused by the corona crisis.

Euler Hermes expects economic and corporate credit risks to remain at high levels, and recognises that it will continue to be challenging times for many companies.

Rik Heijne elaborates: “As always, we are committed to support our customers and the broader Danish economy. We can do this by leveraging our global knowledge and data to calculate trade and credit risks, thereby protecting our customers' future liquidity. We are therefore already in contact with our customers and business partners to help them create a good transition."