LONDON (Reuters) – The UK government said on Monday it would offer a wider range of loan guarantees to promote exports as part of a campaign to boost overseas sales after the country left the country. ‘European Union, its largest foreign market.
Lenders will receive a state guarantee for 80% of the money they lend to businesses to support exports, up to £ 25million per business.
The guarantees will be available to cover working capital and other overhead costs, and will not be tied to specific export contracts, which was generally the case under previous programs taken out by the credit institution at export UK Export Finance.
“The new General Export Facility will make a huge difference for entrepreneurs who need financial support to go global and benefit from our free trade agreements,” said Junior Minister of Commerce Graham Stuart.
Companies that have exported at least 5% of their production in each of the past three years, or 20% in a single year, will be eligible for loan guarantees, which will initially be available from HSBC, Lloyds Bank, NatWest, Santander and Barclays. .
UK Export Finance said it provided £ 4.4bn of export support in fiscal year 2019/20.
Britain exported goods and services worth a total of £ 691 billion last year, while imports totaled £ 721 billion.
Almost half of the goods exported last year went to the EU, and these will face significant additional red tape in the form of customs declarations from January 1, when a settlement agreement is reached. post-Brexit transition will end.
UK goods exports will also face new tariffs if last-minute trade talks with the EU fail, and exports of services are already set to face further restrictions.
The British government has said Brexit will allow it to strike better trade deals with non-EU countries than the bloc has been able to make on behalf of Britain.
The biggest deal reached so far with Japan largely replicates a previous EU deal.
Reporting by David Milliken; Editing by Gareth Jones