REFILE-EDC to stop insuring Chrysler receivables --paper

(Refiles to correct acronym in headline to EDC)

TORONTO, Nov 17 (Reuters) - Export Development Canada is no longer taking requests from auto parts makers for insurance against receivables due from Chrysler LLC, the Globe and Mail newspaper reported on Monday, in a sign that fears about the carmaker's financial stability are growing.

EDC is owned by the government of Canada and backstops mainly small and medium-sized businesses by providing insurance covering up to 90 percent of losses if a customer refuses to pay. That includes when a customer goes bankrupt, declares insolvency, or cancels a contract.

U.S. auto companies have been hamstrung by falling demand amid a worsening economic downturn and a shift towards smaller, more fuel efficient vehicles.

The Detroit Three, which includes Chrysler, Ford Motor Co (F.N), and General Motors Corp GM.N, have been lobbying for a $25 billion aid package from the U.S. government.

The EDC said it's business as usual for suppliers wanting to insure receivables with Ford and GM, the paper reported.

Last week, however, three big European credit insurers removed coverage from suppliers to GM and Ford, the Financial Times reported.

The federal government last month approved a C$2 billion ($1.6 billion) increase in Export Development Canada's borrowing authority, saying it was aimed at helping exporters during the cash crunch.

Neither the EDC nor Chrysler could immediately be reached for comment. ($1=$1.23 Canadian) (Reporting by John McCrank, editing by Dave Zimmerman)