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Iran: Export Credit Guarantees

Volume 459: debated on Thursday 3 May 2007

To ask the Secretary of State for Trade and Industry what advice is being given by his Department to the Export Credit Guarantees Department on loan guarantees for UK exports to Iran. (134322)

ECGD has advised Ministers on export credit cover policy towards Iran. For some time, ECGD has restricted the availability of cover. At present, applications for cover are not being processed pending clarification of the applicability of UN Security Council resolution 1747 to the provision of export credits. In any event, there has been a sharp decline in the demand for ECGD cover.

To ask the Secretary of State for Trade and Industry what recent changes have been made to Government policy on loan guarantees for UK exports to Iran; and if he will make a statement. (134323)

ECGD has pursued a cautious policy towards Iran for some time. Cover capacity has been limited in order to contain exposure. In the light of recent developments with Iran, ECGD is required to consult Ministers before approving any applications for export credit support.

Since the adoption of UN Security Council resolution 1747 in March, ECGD is not processing applications for cover pending clarification on its applicability to the provision of export credits to Iran. In any event, there has been a sharp decline in demand for ECGD cover.

To ask the Secretary of State for Trade and Industry what his role is in decisions on whether to approve export credit guarantees to companies wishing to trade with Iran; and if he will make a statement. (134329)

In the light of recent developments with Iran, ECGD is required to consult Ministers before approving any applications for export credit cover. No applications for cover are currently being processed pending clarification on the applicability of UN Security Council resolution 1747 to the provision of export credits. In any event, there has been a sharp decline in demand for cover for Iran.