BRUSSELS, Dec. 21 (Xinhua) -- The European Commission (EC) has authorized a credit insurance scheme proposed by Lithuania, which aims at limiting the adverse impact of the current financial crisis on exporting firms, a press release said on Monday.

    The commission authorized the scheme until Dec. 31, 2010, and it requires a market-oriented remuneration and concerns insurance cover that the private market currently deem to be insufficient.     

    The Lithuanian short-term export credit insurance scheme abides by the commission's temporary framework for state aid measures to support access to finance in the current financial and economic crisis, the EC said.

    Competition Commissioner Neelie Kroes underlined that the scheme has a double approach.

    "It provides export firms with the insurance cover they need and, at the same time, the top-up mechanism and the level of premium ensure that private market players cannot be crowded out and thus distortions of competition are minimized," Kroes said.

    Under the notified scheme, the Lithuanian state-owned company INVEGA would provide additional short-term export-credit insurance coverage to companies established in Lithuania which are confronted with temporary insufficiency of cover in the private market.

Special Report:  Global Financial Crisis