In the context of the COVID-19 crisis, the European Commission has authorized a guarantee scheme amounting to €10 billion to support the internal credit insurance market. The likelihood of credit insurers refusing to cover a payment default has indeed become higher. This guarantee scheme makes it possible to maintain the credit insurance offer for all companies. It also allows buyers of goods or services to avoid paying for their purchases in advance, which will reduce their immediate liquidity needs.
The Commission also accepted the extension of the Solidarity Fund. This measure has a forecast budget of 1.7 billion euros for March 2020 and 2.9 billion euros for April 2020. Eligible companies will be able to benefit from aid of up to €8,000.