The Export Credits Guarantee Department (ECGD) is set to resume cover for UK exporters and investors to Libya after a £20mn settlement of old debts.
UK exporters and investors will now be able to take advantage of ECGD cover in the Libyan market, which offers opportunities in particular for the oil and gas industry.
“This is further evidence of Libya’s proper re-emergence into the mainstream of the international community,” claims UK trade minister Mike O”Brien.
The UK is one of the first major export credit agencies to resume cover for Libya. ECGD medium-term cover will be considered on a case-by-case basis. ECGD will also offer short-term cash cover, cover under its Good Projects scheme, and Overseas Investment Insurance cover for direct investments in Libya by UK companies.
Good Projects: for certain markets where ECGD’s appetite to accept sovereign risk is limited, ECGD can consider supporting “Good Projects”. All such applications will be considered on a case-by-case basis, but ECGD expects each project to be able to demonstrate that it is viable, professionally managed and a secure hard currency revenue stream is made available to service all lending.