Salmon companies hail export insurance guarantee

NORWAY’S decision to extend export credit insurance for the seafood industry will be decisive for ensuring the flow of salmon exports over the next few weeks, says the employers trade body representing both fishing and fish farming.

Sjømat Norge (Seafood Norway) said previous crises had shown just how important the right credit insurance was for trade and the market and it praised both the country’s Business Minister Iselin Nybø and the Seafood Minister Odd Emil Ingebrigtsen for continuing with the scheme known as GIEK (Export Credit Guarantee Agency).

Seafood Norway director Sverre Johansen said:

This is a very targeted and effective measure from the government. For the entire national value chain related to the seafood industry, it is crucial that we maintain the flow of exports to as many markets as possible. This is also an important measure to avoid any unnecessarily weakening trade.\’

He said it would also help to maintain activity and the continued flow of salmon at the many fish farms along the Norwegian coast.

The seafood industry was already a major user of short-term credit insurance to cover risk against periodic defaults by foreign customers. However, the normal state aid rules prevent the authorities from providing short-term credit insurance in trade to various trading blocs and countries such as the EU, the UK and North America. But the current crisis now meant a number of rule changes had been made by some of these countries which made extending the scheme aimed at reducing much of the risk in exporting even more important.