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ECGD Backs £1.8 Billion Of UK Exports In 2006-07

ECGD, the UK's official export credit agency, today published its Annual Review and Resource Accounts 2006-07, showing it provided £1.8 billion (GBP) of support to UK exporters and UK investors undertaking business overseas.

The report showed ECGD issued 91 guarantees and insurance policies to support British companies competing in overseas markets, compared to 151 in the previous financial year.

ECGD's support for Airbus remained a significant part of the Department's business. In 2006-07, ECGD supported the sale of 58 Airbus aircraft by providing guarantees worth £483 million, compared to 86 aircraft worth £1 billion the year before.

The oil, gas and petrochemicals and telecoms sectors also continued to be sources of business. The largest financing supported by ECGD was for the Yansab Petrochemical Project in Saudi Arabia, which will include the world's biggest ethane cracker.

ECGD earned £55 million of premium and recorded a net operating income of £404 million, compared to £88 million and £1.7 billion respectively in the previous financial year.

ECGD Chief Executive Patrick Crawford said:

"This year we have continued to reshape ECGD to meet the needs of UK exporters in future. On 26 June, Ministers announced the key principles of a new financial framework under which ECGD will operate from 1 April 2008. We are benefiting from all our key functions being on one site and from lower operating costs. And we will continue to make changes over the coming year and beyond in order to deliver our services to exporters in a cost effective way."

NOTES TO EDITORS

1. ECGD's Annual Review and Resource Accounts can be downloaded in pdf format at http://www.ecgd.gov.uk/index/pubs_home/annual_review_and_accounts_2006-2007.htm

2. The Annual Review and Resource Accounts were laid before Parliament on Friday, 13 July 2007.

3. ECGD (http://www.ecgd.gov.uk), the Export Credits Guarantee Department, is the UK's official export credit agency.

4. ECGD works with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services, by providing insurance against non-payment risks to UK exporters and guarantees for bank loans to facilitate the arranging of finance to buyers of UK goods. It also provides insurance against political risks to UK investors in overseas markets.