§ Sir David SteelTo ask the Secretary of State for Foreign and Commonwealth Affairs what proportion of export credit guarantee finance contributes to arms sales; and what assessment he has made of the appropriateness of this funding as a means of overseas aid.
§ Mr. BaldryECGD supported guarantees worth £1.96 billion in respect of defence contracts in 1993–94. This amounted to 48 per cent. of ECGD's support for capital goods and projects in 1993–94.
Export credit cover does not 'form part of the Government's overseas aid effort, nor is it funded from the aid budget. Export credit is provided as part of the Government's export promotion strategy.