In 2016-2017, UK Export Finance (UKEF) increased the funding it provides to exporters by 60% compared to the previous year.
According to its latest annual report and accounts, the UK’s Export Credits Guarantee Department (which operates under the name UKEF) provided £3 billion in export finance.
UKEF supported more than £585 million of new UK export contracts through its trade finance and insurance products, taking the total amount provided since the products were introduced in 2011 to over £3.6 billion.
The total number of companies receiving direct support from UKEF in 2016-2017 was 221. Of those, 21% were classified as large firms and 79% as SMEs.
Almost two-thirds (61%) of those supported were manufacturing companies, with 11% being wholesale and retail. Construction firms accounted for 7% of those receiving UKEF support, as did businesses engaged in professional, scientific and technical activities.
The most popular UKEF products were bonds and export working capital support (65%) followed by insurance (27%).
Commenting on the figures, Greg Hands, Minister for International Trade, said that the Government is putting export finance at the heart of trade promotion and that UKEF’s results “show that the UK’s world-leading exporters are supported by a world-leading export credit agency as they look to succeed in a global marketplace”.
Looking ahead, UKEF has set out how it intends to increase support for exporters in its Business Plan for 2017-2020.
This identifies a number of measures aimed at helping more UK exporters and their suppliers benefit from UKEF support – including a recently-announced partnership with banks and plans to use the availability of UKEF financing to help create procurement opportunities for smaller companies in the UK supply chain.
UK Export Finance Annual Report and Accounts 2016-17 can be found here.
