§ Mr. Hanley
asked the Secretary of State for Trade and Industry if he is prepared to make arrangements for the Export Credits Guarantee Department to guarantee bonds issued for the purpose of financing United Kingdom exports.
§ Mr. Channon
The bond market is an important source of finance which has been little used in recent times for export financing. ECGD, with the assistance of City institutions, has developed a means to enable exports of major items of UK captial equipment to be financed by bond issues. Following discussions with the Treasury, agreement has been given for ECGD, subject to the case by case consent of the Treasury and the Bank of England, to guarantee privately or publicly placed bonds denominated in sterling or foreign currency. This facility will increase the opportunities open to British capital goods exporters to offer financing packages at competitive fixed rates of interest and without subsidy cost.