Bexa press release ukef results june 2014 final

BRITISH EXPORTERS ASSOCIATION

Broadway House, Tothill Street, LondonSW1H 9NQ

Tel.: 020 7222 5419 FAX: 020 7799 2468 email:

19th June 2014

PRESS RELEASE

UK EXPORT FINANCE 2013/14 ANNUAL REPORT

BUSINESS VOLUME STEADY, MORE UK EXPORTERS SUPPORTED, MORE POLICIES AND GUARANTEES ISSUED - IN LINE WITH THE OBJECTIVES OF THE UK GOVERNMENT’S NATIONAL EXPORT CHALLENGE - CONTINUED NET CONTRIBUTOR TO THE EXCHEQUER

UK Export Finance – the UK’s official Export Credit Agency (ECA) – issued its Annual Report and Accounts on 18th June 2014. The results provide clear evidence that UKEF is extending its reach to more UK exporters, particularly in the SME sector.

Key points of note:

  • £2.3bn of exports supported (£2.287bn in 2012-13, excluding exceptionals)
  • 619 facilities issued, this is two thirds more than last year (368 in 2012-13) with a focus on SMEs; 130 exporters directly supported
  • £0.8bn less commercial aerospace supported (15% of Airbus deliveries), reflecting the pick-up in appetite in the commercial banking market for aircraft financings
  • £1.3bn support for the civil sector (£0.4bn in 2012-13) represents an encouraging diversification of UKEF’s book
  • Premium income £120m (£133m in 2012-13), claims £13m (£7m in 2012-13) and recoveries £135m; therefore UKEF remains a net contributor to HM Treasury

BExA Chairman, Jon Coleman, commented: ‘Whilst underlying business levels remain static, these results demonstrate that UKEF’s regional advisers, as championed by BExA, are reaching a wider range of UK exporters. The introduction of new products for medium term credits, namely the Export Refinancing and Direct Lending Facilities, together with the anticipated passage into law of the Small Business, Enterprise and Employment Bill during the current Parliament, provide real substance to the Chancellor’s stated intention to make UKEF the most competitive European ECA. This ambition is further evidenced by UKEF’s announcement of the availability of their guarantee to support offshore RMB denominated loans, which should provide a competitive edge for UK exporters entering the Chinese market.A significant challenge for UKEF in the coming years will be to ensure that the department is suitably resourced such that the anticipated increases in demand from exporters for UKEF support can be met. UKEF remains a key Government department in the context of the National Export Challenge.’

BExA’s5thECGD Benchmarking Paper will be released later this year comparing the performance of UKEF against other OECD ECAs.

NOTES

1)BExA represents British exporters and their service providers and takes a particular interest in the finance of exports and export credit insurance.

2)UK Export Finance (the trading name for the Export Credits Guarantee Department – ECGD) providesinsurance for payment risk and political risk where the appetite from commercial insurers is limited, and guarantees medium term lending. Its facilities include cover for developing markets plus finance support for bonds, working capital and medium term credits.

3)More on the Small Business, Enterprise and Employment Bill:

4)BExA’s 2013 benchmarking of ECAs:

5)BExA believes there is a correlation between a country’s exports and the activities of its ECA.

6)More on the national export challenge:

7)BExA contact: Hugh Bailey, Director, Tel.: 020 7222 5419