The Belgian government confirms its anti-crisis measures !
The Cap system (Complément d'Assurance-Credit Public-Public Credit Insurance Supplement) , Belgacap has been launched!
(Arrêté Royal/Koninklijk Besluit-Moniteur Belge/Belgisch Staatsblad-09.07.2009)
(Arrêté Royal/Koninklijk Besluit-Moniteur Belge/Belgisch Staatsbald-11.01.2010)
Businesses which can no longer afford to insure their client risk can now rely on Belgacap.
Supplier credit is one of businesses fundamental sources of funding. In these difficult times where bank credit options are few and far between, businesses are more and more likely to rely on supplier credit. Now, creditors are suffering from the increased risk of their clients going into insolvency, from lengthier payment terms and a rise in the number of bankruptcies.
And so there's Belgacap , a creative solution to the problems caused by the current economic climate. This tool is a simple mechanism whereby the Government guarantees extra insurance which is granted to suppliers by their private credit-insurer.
Belgacap is exclusively for businesses which are alreday covered by a credit insurance policy and whose registered office is based in Belgium , whose cover has been reduced or is being reduced by their insurance provider since 1st January 2009. In the beginning, only the domestic risks (Belgian customers) will be covered by Belgacap.
If they request a Government supplement , they will pay a premium of 0,5% per quarter. The supplemement is capped at 3 million for large businesses and 1,5 million for SMEs. This temporary measure (a period of 3 months, renewable, up to 8th January 2010) will help businesses continue to cover their risk. The Government thus hopes to help companies get through the financial crisis.
For further information, please call us on 02/404.01.11 or email us at : belgacap@coface.be
