Credit insurer Coface is working with the French government to extend its CAP Relais reinsurance scheme until 30 June 2021.
The programme covers the outstanding inter-company loans of French policyholders, on both their domestic and export markets.
As part of this agreement, Coface will maintain the total amount of its outstanding loans.
This reinsurance scheme takes the form of portfolio reinsurance, and is designed to facilitate the broadest possible maintenance of insured loans as soon as it comes into force. The reinsurance rate on the concerned portfolio will now be 20%.
In addition, the CAP and CAP+ solutions, which are based on line-by-line public reinsurance, have also been extended and their terms and conditions relaxed, notably via lower rates, and the extension of eligibility conditions to all companies, regardless of their size and larger amounts.
Antonio Marchitelli, Managing Director of Coface France & Western Europe commented: “The maintenance of public support for the economy, the prospects for an improvement in the health situation and the expected rebound in the economy have led to a decrease in the reinsurance rate to 20%.
“As a credit insurer, we believe it is essential to send a strong signal to companies about our commitment to them as we face the expected gradual recovery at the beginning of next year in terms of trade.
“Coface is confident in its ability to effectively support its clients in this context of progressive normalisation of the economic environment. Since the very beginning of this unprecedented crisis, Coface’s teams have organised themselves to help them get through this difficult period.”