§ Mr. Gouldasked the Secretary of State for Trade and Industry what arrangements have been made by the Export 209W Credits Guarantee Department with the London and Scottish clearing banks, as represented by the Export and Shipbuilding Finance Committee, concerning the past operation of the comprehensive bank guarantee (open account) scheme and in particular, deficit payments and interest subsidies payable to the banks under the scheme.
§ Mr. Alan ClarkUnder the comprehensive bank guarantee (open account) scheme, a bank makes advances against an exporter's own promissory notes to finance his exports made on an open account or similar basis. Repayment by the exporter of those advances is guaranteed by the Export Credits Guarantee Department. No interest subsidies are payable to the bank under this scheme.
As my right hon. Friend the then Minister of Trade announced on 24 October last, at column 200, the scheme is being phased out by 31 October 1987. This decision was reached after consulting users and other interested parties, including the clearing banks.