Chuka Umunna – 2014 Parliamentary Question to the Department for Business, Innovation and Skills
The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.
To ask the Secretary of State for Business, Innovation and Skills, how many bids to the Export Refinancing Facility have been (a) received and (b) approved since its launch; and how many firms have received funds under the scheme to date.
Matthew Hancock
The Export Refinancing Facility (ERF) was launched on 30 April 2014 in order to support UK bids for projects that require finance above £50m.
The ERF does not provide funds directly to firms but a commitment to banks funding loans to overseas buyers of UK exports to take-out that loan if it has not been possible for the bank to refinance it commercially.
UK Export Finance officials have held several discussions with exporters, overseas buyers and banks in relation to ERF, with one case currently under discussion.
It is likely that ERF will be most relevant during periods of constrained liquidity in the banking market. Given current market conditions, export credit transactions are less likely to require ERF in order to take place but the facility remains an important product in UKEF’s portfolio giving it the ability to respond quickly to changes in those market conditions.
