• The rule completes the decree of July last year that laid the foundations for the privatization of CESCE
  • It aims to contribute to the improvement of competitiveness and greater effectiveness in internationalization policies

The Council of Ministers approved today the Draft Law on coverage on behalf of the State of the risks of internationalization of the Spanish economy, an activity that the current regulations entrust exclusively to the Spanish Export Credit Insurance Company (CESCE) . The new law completes the provisions of Royal Decree Law 20/2012 of July 13 that laid the foundations for the privatization of CESCE. The objective is to achieve greater effectiveness in the internationalization policies of the Spanish economy, to contribute to the fiscal consolidation and rationalization policy of the public sector and to adapt to the rules that govern most of the OECD Consensus countries.

The new standard replaces another of the year 1970 and is an important contribution to improving the competitiveness of Spanish companies. Insurance on behalf of the State is, in this sense, an essential instrument, especially at a time of great dynamism of exports that is not only temporary, but also structural in the medium term. What is sought is to guarantee the strength of the insurance on behalf of the State in the following aspects:

  • It is an essential and strategic economic interest service for the internationalization of the Spanish company.
  • It has the advantage of complementing and completing private financing, serving as a catalyst at times such as the current lack of financial resources to finance trade and investment operations.
  • It must be developed within the framework of the common commercial policy of the European Union and ensure that our exporters and investors have conditions as competitive as those of other actors in international markets.

The main novelties that the draft bill incorporates are:

  • The figure of the Managing Agent is established as the entity designated by the State to manage on behalf of the State and exclusively, through a Management Agreement, certain internationalization risks. A principle of subsidiarity is applied, under which the State cannot cover the risks defined as negotiable, that is, they may be covered by the private initiative.
  • The law contemplates a term of seven years, extendable for another three, during which CESCE will act as Managing Agent. This seeks to ensure the stability of the system so that exporters, investors and financial entities can count on the support of CESCE. The selection of the Managing Agent, after this period has elapsed, must guarantee the suitability of the candidates. The one that ensures the maximization of the efficiency in the management of the State account will be selected, with the restrictions that the public control of the system of official support for internationalization demands.
  • In order to maintain control over the management of the State account, which is currently carried out through the CESCE Board of Directors, the Risk Commission on behalf of the State is created. It will be an interministerial collegiate body chaired by the Secretary of State for Commerce, through which the Administration will instruct and control the Managing Agent.
  • A Risk Reserve Fund for the internationalization of state ownership is created to facilitate the management of resources available to the Managing Agent, without modifying the essence of the budgetary insurance regime on behalf of the State. The account management will, in principle, have the same budgetary impact, whether the manager is in private or public hands.

The law will enter into force three months after its publication in the BOE, which is the same period that is contemplated so that the regulatory standards required for its development and execution, particularly the Management Agreement, are approved by the Government.

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