HC Deb 22 January 2002 vol 378 cc734-5W
Mr. Stinchcombe

To ask the Secretary of State for Trade and Industry whether it is the financial objective of her Department that the ECGD should operate within a break even framework. [27218]

Ms Hewitt

Yes. ECGD aims to maintain a ratio of its reserves to its estimates of Expected Loss on amounts at risk under its guarantees of at least 1.5. Last year ECGD contributed, after expenses, £205 million to the Exchequer.

Mr. Stinchcombe

To ask the Secretary of State for Trade and Industry whether it is the policy of her Department to eliminate subsidies from export credits. [27219]

Ms Hewitt

Yes. ECGD charges premium to cover its costs and expected losses such that a Reserve Coverage Ratio (ratio of accumulated reserves to expected losses) is maintained of 1.5 or higher.