§ Mr. Mike Thomasasked the Secretary of State for Trade whether the Export Credit Guarantee Department is yet ready to give guarantees in foreign currency to facilitate the financing of export credit in foreign currency.
§ Mr. DellECGD has been in active negotiation with a number of banks and has now distributed to them final draft documents. The new arrangements will ensure that although foreign currency funds may be available from the market on variable terms, the United Kingdom banks will continue to be able to offer overseas borrowers normal export credit terms. ECGD will therefore need to be able to step in to provide any finance that may cease to be available from the market. For this purpose, I have authorised ECGD to use the powers in Section 2(2) of the Export Guarantee Act 1975 to make loans to overseas borrowers.