Debt Conversion Scheme

How to apply for the Debt Conversion Scheme from UK Export Finance - its benefits, features and how to apply for the scheme.

This guidance was withdrawn on

Following a review, on 7 February 2019, UKEF removed the Debt Conversion Scheme from its product suite because of lack of demand. If you require support for your export, contact your local export finance manager to discuss how UKEF’s current products can be of help.


Our Debt Conversion Scheme allows a proportion of outstanding debts owed to UK Export Finance by a number of countries to be converted into local currency, at a discount, for investment in local projects approved by us and the government of the country concerned.

How it works

You approach us with an offer to purchase debt and at the same time provide details of the project you intend to invest the debt in. We then assess the project and the price which you have offered for the debt and notify you of the initial acceptability of the proposals.

The benefits of the Debt Conversion Scheme

The benefits are:

  • UK Export Finance receives recoveries for payments which we have made under our guarantees
  • the investor (who purchases the debt) can obtain local currency at a good rate of exchange to finance the acquisition of assets for use in a local project
  • the debtor country is able to settle outstanding debts, but in its local currency and at a discount - the local currency is invested in approved and beneficial projects and it may attract investment that might not otherwise take place

Eligible countries

The Debt Conversion Scheme can be used in the following countries:

  • Bosnia
  • Burma
  • Cuba
  • Ecuador
  • Egypt
  • Grenada
  • Indonesia
  • Iraq
  • Kenya
  • Pakistan
  • Serbia
  • Seychelles
  • Vietnam


We consider the following factors:

  • whether the purchase price you offer for the debt is acceptable
  • the nature of the proposed project or investment that would be financed by the purchase of the debt
  • the contribution the project will make to the social, economic and environmental development of the country
  • your ability, and that of any other participants in the project, to buy the debt and undertake the project
  • whether the project is consistent with our policies, including those on combating bribery and corruption


There is no fee for the application.

Published 17 April 2013