The UK’s export credit agency ECGD is to continue to allow UK exporters to offer medium and long-term finance to overseas buyers at a fixed rate of interest.
The Fixed Rate Export Finance (FREF) scheme has now been extended up until March 31, 2011. It has already previously extended the scheme from the end of December last year to December 31, 2009. The interest rates are all subject to international regulations set out by the OECD and adopted by the major export credit agencies.
Minister for trade, investment and small business, Lord Davies of Abersoch, comments: “In the present difficult climate for exporters, ECGD wants to continue providing British exporters with the real help they need. For those companies that use FREF, this extension should be welcome.”
Access to the FREF scheme is subject to existing budget, of which £4mn is presently available for new business. During 2010, ECGD will continue discussions with banks and exporters looking at how the FREF scheme should or should not be expanded.
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