§ Mr. Robert Taylor
asked the Secretary of State for Trade what changed circumstances have caused him to withdraw from 1 February 1979 export credit guarantees relating to credit limits on buyers in Libya which were approved prior to 1 December 1978; and if he will make a statement.
§ Mr. Meacher
ECGD credit limits on buyers in Libya were withdrawn in February as part of an exercise by ECGD to review its commitments on individual Libyan buyers. The full range of ECGD cover remains available for exports to Libya. However, a review of ECGD's cover on individual buyers is now necessary as a result of developments in Libya involving a major reform of the Libyan private sector. This will affect the standing of some buyers and their ability to continue to meet payments due to United Kingdom exporters. Therefore ECGD policyholders have been asked to re-apply for cover on buyers with whom they are still trading and these applications will then be considered for cover in the normal way.