While the Covid-19 epidemic is receding in France, the government is partially maintaining the CAP, an acronym for public credit insurance supplement. The office of the Minister of Economy, Finance and Recovery, Bruno Le Maire, confirmed on June 25 in a press release the renewal in the second half of 2021 of the CAP and CAP+ credit insurance schemes, for exchanges on the domestic market, as well as the CAP Francexport and CAP Francexport+ programs for international trade. This maintenance should make it possible to “facilitate relations between companies” and “to secure their cash flow in the recovery”, justifies Bruno Le Maire, quoted in the press release. “Credit insurance covers companies against the risk of default by customers to whom they grant payment terms”, recalls his firm.
How CAP, CAP+, CAP Francexport and CAP Franceexport+ work
The retained products “enjoy reinsurance” from the public reinsurer CCR and a state guarantee. They had been put in place in 2020, “to maintain or strengthen individual credit insurance coverage”, at a time when the health crisis was increasing the risk of default.
As Bercy explains in a brochure, if your credit insurer offers you a reduction or does not wish to grant you a guarantee, you have the possibility of benefiting from a public system.
You are likely to obtain an additional CAP or CAP Francexport guarantee in the event of a reduction in the guarantee. Are you subject to a denial or termination of warranty? You can use CAP+ or CAP Franceexport+. Various credit insurers participate in these programs, including Axa Assurcredit, Coface and Euler Hermes.
Read also Credit insurance: Bercy maintains its guarantees in 2021
The end of CAP Relay, a “transition” program
Bercy confirms the termination on June 30 of the CAP Relay program, which represented “a transition device to ensure the overall maintenance of guarantees at the height of the crisis and which fully played its role”, boasts the cabinet of Bruno Le Maire.
For the government, the rebound in economic activity is the basis for this withdrawal. CAP Relai, “which initially covered outstanding domestic credit insurance and VSE, SME and ETI risks” was “fully operational since July 17, 2020”, indicated the Ministry of the Economy in a response to a Written question from Senator Les Républicains (LR) Florence Lassarade (OJ Senate of February 4, 2021). It had been extended “to all large companies and export operations, in accordance with article 34 of the third amending finance law for 2020”.
According to Bruno Le Maire’s cabinet, Bercy will continue to closely monitor “the evolution of credit insurance market conditions” in the country, in conjunction with the main credit insurers and professional federations.
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