Revised powers for ECGD in the face of insurer withdrawals
The UK government’s Export Credit Guarantee Department has launched a public consultation whether or not it should provide letters of credit for British exports because of the scarcity of insurance cover.
The consultation on this scheme was announced by Lord Mandelson in New Industry, New Jobs on 20 April and The Chancellor referred to it in the Budget. But the consultation has now officially been launched and will run to 3 July.
ECGD’s minister Ian Pearson said: “Britain was built on trade, and trade will be vital to our future prosperity. I want to ensure that the support offered by ECGD plays a significant role supporting UK exporters when demand picks up. Under the current difficult circumstances it’s right that the Government should do all it can to help British exports and the jobs they support. And exporters and banks have told ECGD that this scheme will be of real help.
“As ECGD has not undertaken this sort of business for some time, it is appropriate to seek interested parties’ views, and I hope they take advantage of this opportunity to make suggestions for any other new schemes ECGD could introduce to help Britain’s economy.”
As well as receiving written submissions, ECGD will arrange meetings with interested parties if requested.
