Talks of French-style state credit cover are premature

Credit insurers met the government’s Department of Business, Enterprise and Regulatory Reform (BERR) last Friday as part of BERR’s efforts to helps small businesses and keep supply chains operating.

An ABI spokesman told Insurance Times: “We had discussions. We went there to explain to them how credit insurance works and that we weren’t there to bring about the demise of Woolies or anyone else. We will be liaising with the government in the future but any talk of a French-style rescue package is premature.”

A BERR spokesman told Insurance Times: “The government is looking into the issue of credit insurance and is looking at supporting the supply chain. The pre-budget statement made clear our commitment to providing access to cashflow and credit for small businesses.”

The FT claims at least one chief executive from the UK’s big three credit insurers wants a French-style rescue package in which the state offers to guarantee half a small firm’s credit cover.