The continuing spread of the coronavirus pandemic is putting more and more German companies - even those that were previously healthy - under considerable pressure. In order to protect these companies and their supply chains, the German Federal Government and private credit insurers in the German Insurance Association (GDV) today agreed on a far-reaching protective shield for German companies: This is intended to ensure that the German trade credit insurers will be able to maintain most of the existing cover commitments and even take on new ones.
The agreement specifically provides that the German Federal Government will guarantee compensation payments by credit insurers to the value of 30 billion euros until the end of the year to cover business transactions of German companies with their domestic and foreign buyers.
The credit insurers also make a substantial own contribution to this protective shield for the German economy: they transfer 65 percent of the premium income to the German Federal Government and bear losses in the amount of 500 million euros as well as the default risks exceeding the guarantee of the Federal Government of 30 billion euros.