- Norwegian government and trade credit insurers reach agreement to extend the support scheme to sustain trade
- Despite Covid-19, Norwegian businesses continue to benefit from credit limits to secure their commercial transactions
OSLO, 5 JANUARY 2021 – The Norwegian federal government, Euler Hermes and the other Norwegian credit insurers have jointly decided to extend their protective shield for the Norwegian economy by six months until 30 June 2021. By working alongside the public authorities, Euler Hermes continues to support Norwegian companies in overcoming this economic crisis of unprecedented proportions. The agreement protects businesses and their supply chains.
John Justad, Euler Hermes Norway CEO: "We are very pleased that we were able to extend the support mechanism by working closely together with the Norwegian government. Trade credit insurance plays a key role in the economy and we have committed ourselves to continue to sustain trade in Norway. Despite significantly increased risks, our customers will be able to continue their business in the coming six months.”
Trade credit insurance protects B2B companies against the risk of non-payment 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 Norwegian companies are covered under the support scheme.