Euler Hermes casts doubts over gov's credit insurance support scheme

Credit insurer says talks with the European Commission are taking longer than expected

Euler Hermes has revealed that the government's credit insurance support package has hit a bump in the road during talks with the European Commission.

The government was praised when it revealed a package that would temporarily reinsure coverage offered by credit insurers - at a time when insurers were considering reducing their exposure.

But Euler Hermes has now revealed that the package offered by the government may not be as expected, casting doubt over the future of the plan.

In a note sent to brokers, seen by CRN, Euler's UK CEO Milos Bogaerts said: "The negotiations between HMG (the government) and the European Commission are taking longer than planned and there are discussions that could impact the way the scheme is implemented operationally.

"Unfortunately, we need to pause the implementation of the scheme and we cannot reinstate cover just yet."

When contacted by CRN for comment Euler added: "We remain confident that the discussions will reach a successful conclusion in due course."

The note from Bogaerts revealed that Euler plans to reinstate overseas limited with two days of the government's support package being given the go-ahead.

Within four days brokers will be able to start re-applying for UK buyers. It added that any reinstatements applied for under the government scheme will remain pending until further clarification is provided.