Due to the economic impact of the COVID-19 pandemic, the Federal Council has approved a temporary amendment to the SERV Ordinance. This has been done so that SERV can support Swiss exporters quickly and easily with its insurance offer and thereby enhance their competitiveness and aid liquidity.
Under the original ordinance (SERV-V), SERV was only able to apply increased cover ratios for counter guarantees and working capital insurance in the case of a justified application. This justified application is no longer required and the following now applies:
- The maximum cover ratio for working capital insurance is 95 per cent.
- The maximum cover ratio for counter guarantees is 100 per cent.
SERV was previously only able to cover export transactions with a Swiss content of less than 50% of the SERV-covered part of the order value if it could be substantiated that the insurance is in line with the objectives and principles of SERV’s business policy. Providing this proof entails a good deal of time and effort on the part of SERV’s clients, which is why the Federal Council has decided to simplify the process:
- Export transactions with a Swiss content of at least 20 per cent of the total order value will now be insurable without additional evidence.
- Export transactions with a Swiss content of less than 20 per cent of the order value can be insured if it has been substantiated that the insurance is in line with the objectives and principles of SERV’s business policy.
The measures enter into force on 1 September 2020 and apply until 31 December 2022.
SERV has been introducing measures to support the Swiss export industry during the COVID-19 pandemic since 17 April 2020. Further information can be found here.