HC Deb 16 March 1993 vol 221 cc204-5W
Mr. Cousins

To ask the President of the Board of Trade what were the average premium rates charged by national credit agencies in the United Kingdom, France, Germany, Italy, the United States of America and Japan for capital exports in non-OECD markets and the standard national, bank interest rates.

Mr. Needham

The Export Credits Guarantee Department has only limited details of the rates that other export credit agencies charge for capital exports in non-OECD markets. Such information that it does have has been provided by the various agencies in strict confidence.

Rates vary widely from market to market and for different types and durations of risk. Comparison of averages is therefore rather difficult but in general ECGD rates are higher than average for the higher risk markets, lower than average for lower risk and, in aggregate, are rather higher than the overall average.

Interest rates charged by banks vary between customers and over time. In the specific case of fixed rate export fiannce minimum rates are determined by the OECD consensus. The current rates for the countries concerned are:

Contract rate Per cent. Pre-contract rate Per cent.
United Kingdom 8.10 8.30
France 9.20 9.40
Germany 7.87 8.07
Italy 12.75 12.95
United States of America
2–5 years credit 5.93 6.13
over 5–8.5 years credit 6.83 7.03
over 8.5 years credit 7.26 7.46
Japan 5.00 5.20