§ Mr. Warrenasked the Secretary of State for Trade and Industry how many letters he has received concerning the proposed closure of the Export Credits Guarantee Department's comprehensive bank guarantee facilities; and if he will give full details of the losses and the reasons why they have been incurred.
§ Mr. Alan ClarkSeventy exporters or their representatives have written about the proposed closure of ECGD's comprehensive bank guarantee. Some have written more than one letter. It is not possible to put a precise figure on the Department's final losses on the facility because ECGD does not become aware of the final loss under its guarantee often for several years, when the extent of any subsequent recoveries becomes known. The cumulative cash deficit at the end of 1985 was over £70 million. Loss under the facility occurs when an exporter fails to repay the finance advanced by his bank which has been guaranteed by ECGD, and ECGD is unable to recover its payment to the bank because, for instance, the exporter has become insolvent.