ANNOUNCEMENT 24 Sep 2015
In September 2015, the British government announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
On 24 September 2015, the British government announced a memorandum of understanding with the US corporation General Electric (GE). The MoU included a pledge by the UK Export Finance agency to provide financing support worth at least 7.7 billion GBP as well as a 'top-up' support facility worth up to 500 million GBP. According to the press release, GE pledged in return "ongoing support for its UK supply chain" and "to promote UKEF's exporter support scheme to its UK supply base". The press release went on to specify the products and export markets likely to be affected: "Future businessto be considered under the new frameworkincludessolar, power generation and oil and gas related export opportunities inBrazil, Egypt, India and Sub-Saharan Africa."
Prime Minister Cameron was quoted in the press release saying "We are doing everything we can to make Britain the best place in Europe to start, finance or grow a business and GE's substantial commitment through this agreement is fantastic news. (...) It will provide jobs and security for people working in the energy sector and elsewhere. It is a vote of confidence in our long term economic plan".
The Chairman of General Electric, Mr. Jeff Immelt, said "We are fortunate to have the support of UK Export Finance (UKEF) - one of the most flexible ECAs in the world. The UK is pro-export and pro-manufacturing."
GE shall also become part of the Direct Lending Facility announced in the 2014 budget (cf. Related Measures).
According to a media report (cf. Sources), UKEF provides loans under the condition that at least 25% of the loan is targeted to support British jobs.