Brazil has paid off the remaining £90 million (GBP) of debt owed to the Export Credits Guarantee Department (ECGD), UK Trade Minister Ian Pearson announced today.

Welcoming the decision to prepay the whole of its debt to ECGD, Mr Pearson said:

“This is excellent news for ECGD, which has been making good progress in recovering the substantial amounts of historic debt owed to it following the 1980s global debt crisis which affected many financial institutions worldwide.

“The interest saved by Brazil following this £90 million early debt payment will contribute to the country’s sound strategy of debt management.”

The Brazilian debt originates from claims paid out by ECGD in respect of UK exports in such areas as telecoms, mining and petrochemicals that the Department guaranteed or insured in the early 1980s.  

The payment was received following an agreement between Brazil and the Paris Club, an informal group of sovereign creditors which includes the UK Government.

NOTES TO EDITORS

1.ECGD received a record £1.2 billion (GBP) in principal and interest payments under Paris Club debt rescheduling agreements in the last financial year.

2.ECGD, the Export Credits Guarantee Department, is the UK’s Export Credit Agency. A Government Department reporting to the Secretary of State for Trade and Industry, it has nearly 90 years’ experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. We do this by providing:

• Insurance against non-payment to UK exporters;
• Help in arranging finance packages for buyers of UK goods by guaranteeing bank loans; and
• Overseas Investment Insurance - a facility that gives UK investors up to 15 years’ insurance against political risks.

3.More information about ECGD, along with other press releases, can be found at www.ecgd.gov.uk

PRESS ENQUIRIES

Azara Bibi, ECGD Press Office, Tel: 020 7512 7421

(Out of Hours: 07990 887852)