§ Mr. Elystan Morganasked the Chancellor of the Exchequer if he will initiate a scheme of Government-sponsored loans for exporters at rates of interest lower than those now charged by the clearing banks, the difference between the proposed reduced rate of interest and those now charged being financed by Her Majesty's Government.
§ Mr. Roy JenkinsIt would be contrary to our international obligations for the Government to bear part of the costs incurred by exporters in obtaining credit.
Arrangements exist for the Export Credits Guarantee Department to provide guarantees to banks against which the banks lend at a fixed rate of at present 134W 5½ per cent. for export credit of two years or more. There are similar shorter term guarantees, against which the banks lend at the current Bank Rate (with a minimum of 4½ per cent. and varying with Bank Rate over the term of the advance); this arrangement is available for credit of 30 days up to (but less than) two years where the transaction is backed by bills or promissory notes from the importer and for any period up to six months where it is not.