The European union wishes to reduce the distortions of competition between firms that are caused by differences between official medium and long-term export credit insurance systems and establish some transparency in this sector.

Each Member State has its own public export credit insurance system, with significant differences in guarantee arrangements, premium rates and cover policies that can create major distortions of competition between Community firms. This Directive is aimed at lessening those risks by harmonising the different rules of the Member States on export credit insurance.

The Directive applies to cover for transactions related to the export of goods and/or services originating in a Member State, provided directly or indirectly for the account of, or with the support of, one or more Member States, involving a total risk period of two years or more, that is to say, the repayment period including the manufacturing period.