ANNOUNCEMENT 01 Oct 2009
In October 2009, the British government announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
ECGD Annual Report 2009-2010:
Information guide on the scheme:
Indefinite extension of the scheme:
In October 2009, the UK government launched the Letter of Credit Guarantee Scheme covering up to 90% of the risk on eligible letters of credit for British exporters.
According to the information guide provided by the UK Export Finance authority, "UKEF can typically guarantee between 50% and 90% of the value of the letter of credit".
In order to be eligible for the scheme, the exporter must carry out its business in the UK and there are no minimum or maximum limits on the value of the letter of credit.
The programme covers exports to all countries apart from the EU, Canada, the United States, Iceland, Japan, New Zealand, Norway, Switzerland and Australia.
The scheme was meant to last until March 2011 but was indefinitely extended during the launch of the Bond Support Scheme (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.