The European Union has announced that the temporary measure to allow ECAs to reinsure companies’ short-term exports within the OECD will expire at the end of 2011.

The allowance was granted to help exporters ride out the global recession by opening up a new option in the secondary insurance market.

Six state-owned ECAs in the EU currently use the short-term reinsurance scheme, including Denmark’s EKF.

For existing contracts, EKF has stated that it will honour shipments up to and including June 30, 2012, though shipments due after that will not be covered.

“The phase-out has been discussed with the credit insurance companies and the trade organisations, and will be followed closely making the transaction as smooth as possible,” EKF says in a statement.