Many export firms are suffering under the current credit crisis and the increasing difficulty of insuring the export-credit risk on the private market is only adding to their problems. To mitigate this situation, the Danish State export-credit agency, Eksport Kredit Fonden (EKF) has set up a credit insurance scheme, which provides export-credit reinsurance to the front line private insurers, allowing them to provide (better) credit insurance coverage to the export companies.

The European Commission has now declared this scheme compliant with the EU State aid rules on the basis of the following considerations: (i) the premiums charged by EKF reflect the private market rate; (ii) the premiums are set at a level that ensures that exporters will revert back to the private market once sufficient cover has become available; and (iii) the measure is limited in time and is, for the moment, only approved until 31 December 2010.