Federal Government and commercial credit insurers agree on scheduled expiry of protective scheme for supply chains

The protective scheme that was jointly launched by the Federal Government and commercial credit insurers to stabilise supply chains will expire as planned on 30 June 2021. The contracting parties agree that the protective scheme has been an important and very successful pillar in bringing calm and stability to the market. Given the current market situation and data, it is not necessary to extend this scheme again, especially since the expiry of this scheme will be cushioned by other government measures aimed at securing liquidity that are being continued.

The Federal Government and insurers providing credit for goods will continue to remain in very close contact beyond 30 June 2021 so as to be able to act quickly within the scope of European law in the event that the economic situation should worsen significantly and jeopardise supply chains. To this end, any actions taken will be carefully coordinated and market developments closely monitored.

From the Federal Government's point of view, the protective scheme that was put in place in spring 2020 has been a complete success and has helped to stabilise supply chains and flows of goods to the tune of around €420 billion . The supply chains on which the German economy relies, which had been put at risk in the wake of the COVID-19 pandemic, have been able to be maintained.

The overall economic outlook currently points to a recovery. In addition, many of the public support measures will be continued until the end of the year. These will help to support the recovery of the German economy. Against this background, it is the right time for the Federal Government and the private-sector commercial credit insurers to make insurance cover available again on the basis of market principles and to gradually reduce any government intervention in the market. As established experts in navigating risks, the credit insurers have a concept for risk monitoring and management that has been tried and tested for years, which focuses on prevention and a close exchange with clients and their customers. The credit insurers are aware of their economic responsibility and will continue to provide insurance cover based on a sound risk assessment even without a protective scheme being in place.