ANNOUNCEMENT 10 Jul 2015
In July 2015, the British government announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Official statement by UKEF:
Informations on the original Export Working Capital Scheme:
On 10 July 2015, the UK Export Finance authority announced it would expand its eligibility of its Export Working Capital Scheme to include also direct supply chains of UK-based exporters.
With the new provisions, entities supplying the exporting companies will be eligible for the UK Export Finance (henceforth: UKEF) programme which assists companies in obtaining working capital finance by partially (maximum 80%) guaranteeing the credit risks associated with the export working capital facilities.
Participating companies must operate within the UK and include at least 20% British content in their output.
According to the official statement by UKEF, "discussions are ongoing with the participating banks on the operational detail and banks will be invited to submit applications under the widened facility from the end of August".
The list of affected sectors and tariff lines is based on all manufacturing goods (apart from defence-related products) which were above the 1 million USD for at least one bilateral trade flow in 2014.