The Chancellor has announced today that a £1.5 billion direct lending facility is to be established so that UK Export Finance can provide loans to overseas buyers who purchase capital/semi capital goods and services from British exporters. This facility will be available for small and medium size transactions where loan funds cannot be obtained from commercial banks.
This facility will provide confidence to exporters and buyers that export credit financing is available from the UK and enable the UK to compete better with firms from other countries that have equivalent backing from their export credit agencies.
The funding will be made available from 1 April 2013 until end of 2015-16.
UKEF will now be entering into discussions with the British Bankers Association to put in place the mechanisms to deliver the funding for eligible transactions.
Lord Green said: “This is a very positive step for British exporters. It should ensure that funding is available for smaller transactions, and make them more competitive”.