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Exchange Risk Cover

Volume 77: debated on Monday 15 April 1985

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asked the Secretary of State for Trade and Industry why the Government's exchange risk cover on European Investment Bank loans to private industry in non-assisted areas was terminated on 31 December 1984.

The rising costs of operating the exchange risk guarantee scheme and the availability of alternative sources of finance led to my decision to withdraw the scheme for lending outside the assisted areas under the new Community instrument. This took effect from 31 December 1984, with suitable transitional arrangements being agreed with agents. This decision was taken as part of a more general review of the effectiveness of the scheme.