A cargo ship docked at Foynes port, Co. Limerick. \ Donal O' Leary
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There are growing calls for the Government to introduce a State-backed export credit insurance scheme.
Export credit insurance is a form of business insurance that covers the value of
goods being exported to countries or customers where
there may be a risk of non-payment.
Companies can usually source export credit insurance from the private insurance market but this has dried up following the outbreak of the COVID-19 virus.
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In April, the European Commission relaxed state-aid rules to allow member states introduce state-backed export credit insurance schemes to support businesses through the COVID-19 crisis.
According to Paul Kelly, director with industry body Food Drink Ireland (FDI), Ireland is one of the only countries in Europe yet to introduce such a scheme.
Outlier
“Ireland is now an outlier in Europe when it comes to introducing state-backed export credit insurance.
“Even the UK has introduced this scheme. It’s leaving Irish food and drinks companies at a competitive disadvantage,” said Kelly.
A survey of CEOs in the Irish agri-food industry carried out by FDI found that 68% of companies are experiencing reduced production, 64% are seeing a reduction in their customer base while 73% expect a decline in export sales.
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There are growing calls for the Government to introduce a State-backed export credit insurance scheme.
Export credit insurance is a form of business insurance that covers the value of
goods being exported to countries or customers where
there may be a risk of non-payment.
Companies can usually source export credit insurance from the private insurance market but this has dried up following the outbreak of the COVID-19 virus.
In April, the European Commission relaxed state-aid rules to allow member states introduce state-backed export credit insurance schemes to support businesses through the COVID-19 crisis.
According to Paul Kelly, director with industry body Food Drink Ireland (FDI), Ireland is one of the only countries in Europe yet to introduce such a scheme.
Outlier
“Ireland is now an outlier in Europe when it comes to introducing state-backed export credit insurance.
“Even the UK has introduced this scheme. It’s leaving Irish food and drinks companies at a competitive disadvantage,” said Kelly.
A survey of CEOs in the Irish agri-food industry carried out by FDI found that 68% of companies are experiencing reduced production, 64% are seeing a reduction in their customer base while 73% expect a decline in export sales.
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