KredEx Credit Insurance obtained insurance license from the Estonian Financial Supervisory Authority

On May 26th, the Estonian Financial Supervisory Authority issued insurance license to KredEx Credit Insurance Ltd (KredEx Krediidikindlustus AS). This state owned new insurance company will help Estonian companies to manage trade credit risks related to export and domestic sales and support expansion to new export markets.

The company was founded on November 26th, 2009 and license application was submitted to the authorities in January 2010. Preparations are now being made to start operations already in July 2010. According to the Minister of Economic Affairs and Communications, Juhan Parts, the creation of a new credit insurance company will support export growth and create a local long-term partner for exporters to manage business risks resulting from trade transactions. 

“The activities of the new insurance company have a long-term perspective and the foundation of the company was not based only on the present economic situation. In addition to improving the local credit insurance offering, another goal is to create additional competence in Estonia for financing export projects,“ Minister Juhan Parts said.

Due to the state aid rules valid in European Union, state owned Credit and Export Guarantee Fund KredEx has previously issued state export guarantees mainly just to third countries located outside the EU and OECD. The new credit insurance company plans to offer export insurance also in the direction of EU and OECD countries.

According to Mr. Meelis Tambla, Chief Executive Officer of KredEx Credit Insurance, similar insurance companies or export agencies with state participation operate in many countries.

 “Years 2008 and 2009 were quite difficult for global credit insurance due to increased loss rates, but there is a tendency towards improvement and I think that timing for launching KredEx Credit Insurance is very good”, Mr. Tambla said.

The Supervisory Council of the company is chaired by Mr Andrus Treier, manager of  Credit and Export Guarantee Fund KredEx. Council members are Ms. Kertu Fedotov from the Ministry of Finance and Mr. Jarmo Tuisk from the Ministry of Economic Affairs and Communications. Two-member management board has also been appointed and includes Mr. Meelis Tambla and Ms. Mariko Rukholm.