UK Export Finance is resuming its short-term cover for British exports to Burma for the first time in over 20 years.
The UK’s export credit agency (ECA) is re-opening its short-term insurance cover for Burma due to the country’s historic changes over the last few months, which resulted in the partial suspension of EU sanctions.
The ECA, which went off cover for Burma in the late 1980s, says that each application will be considered on a case-by-case basis.
This announcement comes as Lord Marland, chairman of UKTI’s business ambassadors' group is in Burma.
UK Export Finance chief executive Patrick Crawford says: “Trade is going to play an important role in Burma’s transition to democracy and I am delighted that British companies are already looking at the opportunities at this exciting time. Our short-term insurance cover should help British exporters who are worried about the risks of non-payment.”
UK Export Finance is taking the lead as the first European ECA to resume cover for Burma. A spokesperson for Italy’s ECA Sace tells GTR that it has not yet reviewed its terms of cover but that it is “closely monitoring the evolution of the country”.
Germany’s Euler Hermes is also holding back, telling GTR that it has no current plans to resume trade finance insurance for transactions in Burma. However, a spokesperson for Euler Hermes explains that the development in Myanmar is carefully being monitored.