HC Deb 17 January 1991 vol 183 c593W
Sir John Farr

To ask the Secretary of State for Trade and Industry (1) if he will extend Export Credits Guarantee Department cover to British machine manufacturers exporting to Brazil;

(2) if he will take steps to enable British knitting machine manufacturers to offer extended credit terms of up to five years, with low rates of interest on supplies of such machines to Brazil.

Mr. Sainsbury

ECGD cover for export contracts in Brazil on credit terms of up to five years is currently suspended. Brazil is in arrears on debts which have already been rescheduled. These arrears must be settled and an IMF economic programme implemented before .ECGD can consider restoring extended credit arrangements.

If and when ECGD is able to resume medium cover, finance will be made available by United Kingdom banks at interest rates permitted under the OECD consensus arrangements.