New support for exporters
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Issued 09 February
2011 - BIS
Four new schemes will be
created to help exporters get access to credit and insure themselves
against risk, and one existing scheme will be extended, the Government
announced today.
The Government believes
rising exports will be crucial to securing economic growth and is
taking steps to help UK firms compete internationally.
The new schemes will be:
- Export Enterprise Finance Guarantee Scheme
established by the Department for Business, Innovation &
Skills, offering export finance valued up to £1m to SMEs.
- ECGD will launch the Export Working Capital Scheme
for those not eligible for the Export EFG, offering export finance
worth over £1m.
- Bond Support Scheme offered by Export
Credits Guarantee Department (ECGD), under which the Government will
share risk with lending banks on the issue of contract bonds.
- ECGD will support banks offering foreign exchange hedging
contracts to small and medium enterprises (SMEs) by sharing credit risk.
In addition, ECGD will
extend its existing short term export insurance to
cover a broader range of exporters, including SMEs.
Trade and Investment
Minister Lord Green said:
“The Government will offer
an expanded, better coordinated range of products to large and small
businesses alike, working closely with the banks to widen access to the
capital and credit insurance exporters need to make the most of their
opportunities.
“Our exporters are crucial
to securing the recovery and we want to do everything we can to help
them grow. This new support will help British exporters compete and win
business overseas.”
Trade Policy Minister Edward
Davey said:
“Businesses have told us
they want more help to access the vital credit they need to meet rising
orders for exports, and to protect them from some of the uncertainties
of international trade.
“Today we are taking strong
action to expand the range of support the Government offers businesses,
particularly small firms. With these measures in place, entrepreneurs
will have the Government right behind them as they take the best that
Britain has to offer to markets around the world.”
In March the Bond Support
Scheme will be available from banks and the extended Export Insurance
Policy direct from ECGD. The other three measures are each expected to
launch in April.
Note:
- The Export Enterprise Finance Guarantee
Scheme will be based on the successful Enterprise Finance Guarantee
Scheme (EFG). It is aimed at SME exporters with annual turnover up to
£25m, who will access the scheme through a range of commercial
providers, many of whom already participate in the EFG.
- Extension of ECGD’s insurance policy means
it will no longer only be available to exporters of capital goods.
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2011-02-09 17:07:26 in Business Articles
