Broadening the Cap Francexport short-term export credit reinsurance scheme
With the Cap Francexport scheme, the French government, acting via Bpifrance, will reinsure private insurance companies to support the credit insurance market as regards short-term export receivables (less than two years), with dual cover: as a supplement to cover offered by a private insurance policy or to enable cover to be maintained for clients that have more difficulty securing it.
The scheme will apply for a wide range of export destinations (in addition to the 17 currently covered), including EU Member States and OECD Member countries.
The government’s contribution to this scheme has been doubled and is now capped at €2 billion thanks to the guarantee stipulated in the Supplementary Budget Act of 23 March 2020.
Tangible changes brought about by the measure
For businesses: preservation of credit insurance arrangements allowing cash-flow to be secured.
For insurance companies: a public reinsurance capacity enabling them to address a mainstreamed rise in payment defaults on the international stage due to worsening global economic conditions.
Cap Francexport: short-term export credit insurance enabling payment options and lead times granted by exporters to their buyers to be guaranteed, usually by several months. It allows international payments to be secured and boosts the competitiveness of the French offering by letting exporters offer attractive financing terms to their customers. The Cap Francexport scheme, which was unveiled in 2019, includes a reinsurance contract between the government, via Bpifrance Assurance Export, and four private insurance companies, which focuses on 17 countries in which market failures have been identified.
Contact : Bpifrance Assurance Export.