§ Mr. Hal Miller
asked the Secretary of State for Trade whether he proposes to make any changes in the terms of the Export Credit Guarantee Department scheme of cost escalation cover.
§ Mr. Parkinson
As foreshadowed in my statement on 4 March when I opened the debate in Standing Committee on the draft order to extend this scheme for a further 12 months, I am making a modest change in the scope of cost escalation cover for credit contracts financed in foreign currencies. Since it is no longer Government policy to insist that the financing of certain major export contracts374W be in foreign currency, the enhanced terms of such cover for these contracts will be discontinued. In future such contracts will be treated for the purposes of this scheme in the same way as credit contracts financed in sterling. This change will affect new applications for cover made after 5 April 1981. Cash contracts, whether expressed in foreign currency or in sterling, will continue to enjoy the existing preferential terms of cover.