UK Export Finance (UKEF) has been allocated £1.5bn to support British exports over the next three years.

In his Autumn Statement, UK chancellor George Osborne allocated the money to the export credit agency (ECA) to provide loans to overseas buyers purchasing British exports.

The main beneficiaries will be SMEs, with the government identifying these as the potential growth engine needed to revive Britain’s stagnating economy.

UKEF will now be entering into discussions with the British Bankers’ Association to put in place the mechanisms to deliver the funding for eligible transactions. The only eligible transactions will be those under £50mn, to which the commercial sector has been reluctant to lend.

Lord Green, minister for trade and investment, tells GTR: “This is a very positive step for British exporters. It should ensure that funding is available for smaller transactions, and make them more competitive.”