(RTTNews) - Tuesday, UK’s Export Credits Guarantee Department launched a credit guarantee scheme to assist exporters by boosting the availability of short-term export finance. In the current economic climate, UK exporters are looking for secure forms of payment from their overseas buyers, particularly those in emerging economies, the ECGD said in a statement.

Under the scheme, the department will guarantee up to 90% of the value of confirmed letters of credit issued by 282 overseas banks of 36 countries to five of the UK’s banks - Barclays, RBS, HSBC, Lloyds TSB and Standard Chartered. More banks and export markets are expected to be added to the scheme.

UK Minister for Trade, Investment and Small Business, Mervyn Davies said, “I believe this new scheme could provide real help to UK exporters, particularly smaller companies exporting to emerging markets, which is where letters of credit are most used and where new opportunities can be found.”

The scheme will run until March 31, 2011 and will not cover exports to the EU or to Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland or the United States. To cover exports to these nations, the UK would require EU State Aids approval from the European Commission. Letters of credit are not commonly used in these markets.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Australia, Canada, Economy, Eurozone, Japan, New Zealand, Releases, Stocks, Switzerland, UK.

Subscribe by RSS Subscribe by Email