State aid: Commission approves €800 million Polish receivables insurance scheme to support domestic trade credit in context of coronavirus outbreak

The European Commission has approved, under EU State aid rules, an approximately €800 million (PLN 3.7 billion) Polish receivables insurance scheme to support domestic trade credit in the context of the coronavirus outbreak. Trade credit insurance protects companies supplying goods and services against the risk of non-payment by their clients. Given the uncertainties caused by the prolonged economic impact of the coronavirus outbreak, private insurers became more reluctant to offer sufficient insurance coverage to Polish sellers. The Polish scheme ensures that trade credit insurance continues to be available to all companies, avoiding the need for buyers of goods or services to pay in advance, therefore reducing their immediate liquidity needs. The Commission assessed the measure under Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy. The Commission found that the scheme notified by Poland is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the general principles set out in the State aid Temporary Framework. On this basis, the Commission has approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.59800 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.