Tuesday, 16 June 2020
Department of Jobs, Enterprise and Innovation
Covid-19 Pandemic Supports
463. To ask the Minister for Jobs, Enterprise and Innovation if a scheme is being proposed to deal with the withdrawal of credit insurance for businesses similar to that announced in Germany and the UK; if so, the details of the scheme; the estimated annual cost of implementing such schemes here; and if she will make a statement on the matter. [11583/20]
I am aware of the impact that the Covid-19 pandemic has had on all businesses and this includes the private trade credit insurance market.
As a result of the significant economic shock, there is increased uncertainty regarding the financial performance of many companies in our economy. I understand that the trade credit insurance companies have had to adjust their coverage in response to this adverse economic environment.
In response the Government has already introduced a range of measures and supports to the economy in order to sustain and over time facilitate a return to a more normal trading environment. This in turn should permit the trade credit market to reconsider the risk environment and adjust their coverage as appropriate.
My Department continues to consider further options for appropriate and effective assistance to businesses and this includes the possibility of supports to ensure the continued provision of credit insurance and the appropriate mechanism to do so. This has included examination of trade credit interventions undertaken in other countries.
My officials are engaging with the private trade credit insurance providers to assess the impact of the current crisis on trade credit insurance and the scale of the consequential impact on Irish businesses, and whether specific support can be provided to this market and how this could complement other general supports provided by the Government.
Any support will need to be considered alongside these other available options, which may be capable of achieving an effective outcome and minimising the risk exposure to public funds.
This is an ongoing process.