UK policy is that UN Security Council Resolution 1747 does not apply to the provision of export credits. The UK has pressed, both at the UN and the EU, for constraints on the provision of new export credit support for Iran, since multilateral imposition would have the maximum impact. We were unable to secure an explicit reference to export credits in UN Security Council Resolution 1747 and, like other countries, have concluded that export credits are not therefore covered by the Resolution.
We continue to press for multilateral constraints on new export credits to be among the sanctions options that may be included in a further UN Security Council Resolution and EU Common Position. Consistent with this stance, ECGD is reviewing its position on Iran and has stopped processing applications for new cover.
All markets are kept under regular review by ECGD to determine their riskiness.
ECGD’s formal risk assessment criteria for any sovereign risk includes the capacity and willingness of the country in question to meet its debt commitments (i.e. the risk of default) taking account of any uncertainties in its international relations; how long a default might last were it to occur (which informs our judgement on the risk of potential claims); and the likely loss that could be incurred. In addition, for riskier markets, ECGD reviews on an ongoing basis whether cover and premium policies and case handling arrangements remain appropriate.
A decision on risk by ECGD is also subject to wider UK foreign policy objectives.