The Trade and Investment White Paper announced 4 new Export Credits Guarantee Department (ECGD) initiatives to support exporters, particularly smaller companies.
ECGD will set up a bond support scheme, to help exporters raise tender and contract bonds by sharing risks with banks that issue bonds or counter-indemnities in respect of export contracts.
ECGD will extend its existing short term credit insurance product to cover a broader range of exports.
ECGD will launch an export working capital scheme, to facilitate exporters’ access to working capital finance for specific export contracts by sharing risks with the banks on loans above £1 million.
ECGD will develop a foreign exchange credit support scheme to facilitate exporters’ management of their exposure to foreign exchange rate movements, where exporters have taken out another ECGD product, by sharing risks with banks.
In addition, the Department for Business will set up an export enterprise finance guarantee scheme to offer export finance for contracts under £1 million to SMEs.
ECGD’s minister Lord Green said: “These new initiatives will offer an expanded, better coordinated range of products to large and small businesses alike, widening access to the capital and credit insurance exporters need to make the most of their opportunities.”
The extended insurance will be available directly from ECGD in March. The bond support scheme will be available from participating banks and is expected to be available in March. The other 2 ECGD measures are expected to be made available from participating banks in April.