BRITISH EXPORT CREDITS

Hokitika Guardian, 27 January 1921, Page 4

BRITISH EXPORT CREDITS

THE SCHEME EXTENDED

An idea of the extent to which the export credits scheme lias been and is likely to be developed in furtherance of British foreign trade, is given in a letter recently circulated by the British ■ Departnuynt of Overseas Trade, t; Chambers of Commerce and other local bodies interested. Up to the present (says the letter the scheme set up under the Overseas Trade (Credits and Insurance) Act has not been taken advantage of to a very great extent, partly owing to the fact that manufacturers and merchants in this country have enjoyed a period of unprecedented prosperity and have had no time to consider extensions in new directions “There are now signs of reaction and consequent slackness of trade, and it is therefore likely that manufacturers and others will be seeking now outlets for their trade. Mr Koliaway, therefore, considers that it is desirable to call attention to the advantages offered by the Department and the assistance which it can afford in the development of British trade.” By the Act of Parliament provided . that ercdjts might be accorded up to ail aggregate amount not exceeding 26 million pounds in respect of exports of British manufactured goods to Finland,; Lata via, Kstlionia, Lithuania, Poland, Caeoho-Slovukia, the Serb-Croat-Slovene State, Boumania, Georgia, and Armenia. Bulgaria has recently been added to the schedule and other countries may possibly be included as occasion arises.

Under tlie scheme as originally framed, advances were made by the Department only up to 80 per cent of thy cost of the goods, including freight and insurance and commission paid to the Exports Credit Department', such advances being without recourse against the exporter. Tlu> Department is now authorised to advance in approved cases up to 100 per cent., retaining" recourse against the exporter in respect of 20' per cent. Credits may be granted iip to 100, per cent., retaining recourse against the exporter in respect of SO per cent. Credits may be granted up to a maximum period of three years.