The State will insure risks of Spanish companies going abroad

Automatic summary, not yet reviewed

1. The law sets the rules for State-backed coverage of risks Spanish companies face when they export or invest abroad, as a service of general economic interest, within the European Union's common trade policy.
2. The State may cover commercial risks (private debtors failing to pay), political risks (public institution decisions, armed conflicts, expropriations) and extraordinary risks (natural disasters), and will prioritize operations of strategic interest, especially those of small and medium-sized companies.
3. Management is entrusted to a Managing Agent (Agente Gestor) appointed by the Minister of Economy and Competitiveness, under a management agreement signed with it. The Agent acts at its own risk, but the State bears ultimate responsibility as insurer or guarantor of the coverage.
4. The Commission on State-Account Risks is created, with up to fourteen members from several ministries and chaired by the Secretary of State for Trade, to oversee and direct the Managing Agent's work and decide on coverage, tariffs and new types of policies.
5. The Reserve Fund for Internationalization Risks is created, managed by the Insurance Compensation Consortium, where State-account operations are recorded. The annual State Budget Act will set the maximum contracting limit each year.
6. CESCE will be the Managing Agent for eight years from the moment the State loses its majority stake, and the law also applies to policies already in force without changing their terms. It takes effect three months after publication in the official gazette (BOE).

Who it affects

• Spanish exporting and investing companies: They can take out State-backed insurance and guarantees covering their risks abroad.
• CESCE: It will be the Managing Agent for eight years from the loss of majority public ownership.
• Ministry of Economy and Competitiveness: It appoints the Managing Agent, signs the management agreement and sets premium tariffs.
• Commission on State-Account Risks: It oversees and directs the Managing Agent's work on behalf of the Administration.
• Insurance Compensation Consortium: It manages and administers the Reserve Fund and its treasury.

Words worth knowing

Cobertura por cuenta del Estado (State-backed coverage)

Insurance and guarantees offered by the State, not a private company, to protect businesses from the risks of exporting or investing abroad.

Agente Gestor (Managing Agent)

The entity in charge of managing those insurance policies and guarantees on behalf of the State, under an agreement signed with it.

Riesgo político (political risk)

Losses caused by decisions of governments or public institutions, armed conflicts, or problems transferring money from one country to another.

Subrogación (subrogation)

When the Managing Agent pays a claim, it steps into the insured party's shoes to pursue the debt from whoever owes it.

Riesgo vivo (live risk)

The total amount of covered risks still open at any given time.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries