ANNOUNCEMENT 25 Apr 2019
On 25 April 2019, the UK Export Finance agency (UKEF) announced providing financing to support Airbus Defence and Space Ltd UK's contract with the communications satellite operator of Turkey.
NUMBER OF INTERVENTIONS
UKEF Press release of 25 April 2019, UKEF supports Airbus UK as it delivers two satellites to Turksat, Turkey: https://www.gov.uk/government/news/ukef-supports-airbus-uk-as-it-delivers-two-satellites-to-turksat-turkey
UK Export Finance agency, How to access export credit insurance, a guide to UK export finance's export insurance policy, Version 1.0, May 2015: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/562051/UKEF_Broker_toolkit_Oct_2016.pdf
UK Export Finance agency, Guidance, Export Working Capital Scheme, Published 24 April 2013, Last updated 16 October 2017: https://www.gov.uk/guidance/export-working-capital-scheme-overview-and-how-to-apply
On 25 April 2019, the UK Export Finance agency (UKEF) announced providing a guarantee for a loan granted to the Turkish Ministry of Treasury and Finance having a total value of USD 325 million. The financing will support Airbus Defence and Space Ltd UK's contract with the Turkish communications satellite operator Turksat.
Under the contract, the British company will manufacture and deliver a ground station and two telecommunications satellites for Turkey's provision of TV and data services. The two satellites will be launched into space and delivered in orbit by Airbus Defence and Space Ltd UK.
In this context, the International Trade Secretary Dr Liam Fox stated in a press release: "The UK continues to lead the way in the global telecommunications industry and this contract demonstrates the ongoing worldwide demand for this expertise. UKEF’s support is an important differentiator for companies exporting from the UK, helping them win international business as the government looks to realise the Export Strategy ambition to increase exports to 35% of GDP."
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
To be eligible for support from UKEF, the export contract value must have a minimum UK content of 20%. Foreign content imported and utilised as parts or components of the manufacturing process is considered as UK content.