§ Mr. Llew SmithTo ask the President of the Board of Trade what export credit guarantees were made available to Iraq for each year since 1979; and if there were changes of policy covering the export credit guarantees to Iraq over this time period.
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§ Mr. NeedhamUnited Kingdom credit facilities for Iraq prior to 1983 were limited to basic credit insurance for cash or short-term credit transactions. From 1983 to 1988, under a series of inter-governmental financial protocols, the Export Credits Guarantee Department also supported the financing of United Kingdom contracts on medium-term credit involving the sale of capital goods, services, pharmaceuticals and humanitarian products. From 1985 onwards, of the overall protocol amounts, a limit of 20 per cent. was applied to medium-term credit for defence-related goods. ECGD came off cover for all types of transaction with Iraq in 1990.
The value of business with Iraq conducted on cash or short credit terms supported by ECGD since 1979 was:
£ million 1979 113 1980 170 1981 292 1982 589 1983 461 1984 140 1985 161 1986 208 1987 55 1988 48 1989 97 1990 156 The amount of medium-term finance available under the protocol arrangements was:
£ million 1983 1250 1984 1250 225 1985 250 1986 250 1987 3100 275 1988 3280 260 1 Capital Goods and Projects 2 Pharmaceuticals and Humanitarian Products 3 Capital Goods, Services and Projects The finance available under these protocols was not fully taken up by Iraq. ECGD's actual exposure was therefore less than the figures given above.