| Delay could hit exporters |
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 For SMEs needing short term trade finance to take advantage of export opportunities, the Export Credit Guarantee Department (ECGD) will develop a £1 billion guarantee scheme on a risk share basis with banks. They will work with the banks to devise the terms of the scheme with respect to risk, premia and maturities and levels of risk sharing with the banks. As trade finance is short term, guarantees can be rolled over during the course of the year and support trade of multiples of that total allocated amount. Also, the Fixed Rate Export Finance Scheme will continue for another year after the end of 2008. The British Chambers of Commerce has received reports about the withdrawal of export credit insurance so this will go some way to helping exporters. However, once again, the scheme has been announced with no detail of its operation. The ECGD even says on its own website 'there is no set timetable for its implementation'. The following website offers limited further information: http://www.ecgd.gov.uk/index/news_home/pre-budget_report.htm |
