HC Deb 03 February 1992 vol 203 cc23-4W
Mr. Nicholas Winterton

To ask the Secretary of State for Trade and Industry what assistance is currently made available by his Department specifically to assist British companies to obtain and fulfil contracts to supply goods and services to Romania.

Mr. Sainsbury

[holding answer 30 January 1992]: A range of services is available under the enterprise initiative including support for outward missions and participation in overseas trade fairs, general information on the markets and answers to specific questions about market opportunities. The services are available through the Romanian section of my Department or our network of regional offices.

Export Credits Guarantee Department cover is not available for medium-term business—that is, on credit terms of two years or more—for Romania, but the position is currently under review.

Short-term cover is available from the private sector.

Mr. Nicholas Winterton

To ask the Secretary of State for Trade and Industry if he will make a statement of the reasons why Export Credits Guarantee Department cover is not available for British exports to Romania.

Mr. Sainsbury

[holding answer 30 January 1992] The availability of ECGD medium-term export credit cover is dependent on assessment of a country's capacity to repay its debts. Romania's International Monetary Fund programme identifies a significant financing gap in the country's balance of payments. The EC has agreed to fund 50 per cent. of this gap but, thus far, the aggregate amount pledged by other donor countries has fallen well short of the remaining 50 per cent.

There have also been a number of very significant changes in the economic and political situation in Romania during the last year. These have also had to be taken into account in deciding whether to resume cover.

Now that the position is becoming clearer and more international support for Romania's balance of payments is becoming available the provision of ECGD cover is under active review.

Mr. Nicholson Winterton

To ask the Secretary of State for Trade and Industry what assessment he has made of the size of contracts available to British exporters wishing to supply goods and services to Romania.

Mr. Sainsbury

[holding answer 30 January 1992]:] Information on which to base a comprehensive assessment is not available.