The Council adopted Directive 98/29/EC on the harmonisation of
medium and long-term export credit insurance. The Directive sets
out common principles for export credit insurance relating to the
scope of cover, premiums, the determination of country cover
policies and notification procedures.
The Directive applies to insurance cover for export
transactions for goods and/or services originating in a Member
State and involving a repayment period of two years or more or a
manufacturing period and a repayment period of two years or more in
total. The Directive applies insofar as the cover is provided
directly or indirectly for the account of or the support of one or
more Member States. The Directive does not apply to cover for
advance payment, performance and retention bonds, or for risks
relating to construction equipment and material when locally used
for the performance of the commercial contract.
The Directive aims to prevent competition
distortions arising from differences between Member States'
provisions on insurance provided to nationally-based companies. It
replaces two 1970 Directives which covered public and private
sector credit insurance.