§ Mr. Ioan Evansasked the Secretary of State for Trade if he will review facilities for the Export Credits Guarantee Depart- 640W ment support in respect of performance bonds for export contracts.
§ Mr. DellOn 20th June 1975 my right hon. Friend the Member for Stepney and Poplar announced that the guidelines for ECGD's scheme for supporting performance bonds for cash or near-cash contracts were to be relaxed to the extent that the minimum value of contracts eligible for such support was to be reduced from £20 million to £2 million. In the light of experience I have decided that further relaxations are now possible and desirable.
In future, therefore, ECGD bond support will be available for contracts on cash or near-cash terms with a value of £1 million or more. Moreover, it will no longer be necessary for applicants to demonstrate that they have exhausted their commercial bonding facilities before becoming eligible for ECGD support.
I have also decided that where exporters raise their own bonds without ECGD support, ECGD should provide some insurance against the unfair calling of such bonds. This new cover will be available for both cash and credit contracts on payment of an additional premium, as an optional extra for the Department's Specific and Buyer Credit Guarantees.