Bercy renews the system protecting companies against unpaid debts

Posted on Oct 18, 2020 at 1:31 PM

The executive does not want to deprive itself of this key instrument of its business relief kit. According to our information, Bercy has decided to extend the safety net deployed at the start of the Covid-19 crisis so that credit insurers continue to protect the cash flow of companies.

An amendment to the 2021 finance bill should therefore maintain, beyond the end of the year, the public guarantee of 15 billion euros put in place for this purpose in the spring (of which 5 billion are intended to cover companies exporters).

Credit insurers are an essential link in the economy because they cover companies against the risk of default of their customers. However, when a crisis weakens businesses, these insurers seek to reduce their risks by limiting the level of protection offered against default.

Less expensive and more covering offers

Faced with business concerns, the government decided in the spring to grant a public guarantee to credit insurers until the end of the year. Thanks to this safety net, credit insurers, even if they are more cautious than before, can further protect companies subscribing to certain offers (“CAP” and “Cap +”).

These offers will continue to be offered next year thanks to the maintenance of the public guarantee. In recent days, professionals have also worked with the public authorities to make these solutions – little used until now – less expensive, more covering and accessible to more companies.

These are all elements likely to reassure credit insurers. For now, the wave of business failures feared by professionals has not materialized. However, “ we remain fairly convinced that this wave will be shifted in time and should occur perhaps slower in fiscal year 2021. CAP, CAP + will make it possible to manage this ”, explains Eric Lenoir, chairman of the executive committee of Euler Hermès France.

Concerns about rising premiums

For now, the executive has not decided to extend another support system for credit insurance called CAP Relais. Set up in the summer, this is also based on a public guarantee. But this is granted globally to credit insurers rather than in a targeted manner for the benefit of CAP and CAP + clients.

This device, reminiscent of the one that was put in place across the Rhine “Was not designed to be extended”, we explain to Bercy. Caution remains, however, when confinements cloud the economic outlook. “We are on subjects on which we have visibility in a few weeks”.

Some would welcome the extension of “Cap Relais”. “ What we lack is to have a little visibility on what will happen tomorrow, explains Jean-Michel Pérès, CEO of Groupama Assurance-Crédit & Caution, seeing it as a pledge of “Stability”.

On the side of the insured, concerns remain. ” There are members who have seen their premiums increase by 30 to 50%, or even more ”, alert Laurent Martin Saint Léon, general delegate of the federation of timber trade and building materials, wishing that the State put a stop to these increases.

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