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DEPARTA
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EXPORT CREDITS GUARANTEE DEPARTMENT
606 6699 Ext. 7350 Aldermanbury House
Aldermanbury
London, EC2P 2EL
Miss J Kelley
HM Treasury Treasury Chambers Parliament Street LONDON SW1
DIN
No. 51
26 JUL 1977
HKK 16x!1
ли уж
21, July 1977
Civeirahlzy
RECEIVED
LECH I
RESISTRY NO
Pl. place project.
on CLP file
FIXED RATE EXFORT FINANCE - GENERAL FURFOSE ("SHQFFING BASKET") STERLING LINES OF CREDIT
гург
5211.
Against the background of the increasingly severe constraints on the availability of fixed rate sterling for the finance of export credit and of our general experience of general purpose lines of credit in particular, we have found it necessary to introduce new conditions of availability and I shall be writing shortly in the following terms to the various Banking Associations.
Our experience has not demonstrated that such facilities generate substantial additional exports which may not have been arranged by other means. We do not propose, therefore, to support any new or "renewal" sterling general purpose lines of credit for borrowers in EEC countries, nor for borrowers in "developed" countries outside the EEC. ("Developed" equates to "Rich" under the Gentlemen's Agreement arrangements). General purpose lines of credit expressed in foreign currency (US dollars or Deutschemarks) will be considered for these countries provided there is evidence at the outset that they will be substantially used.
Sterling general purpose lines of credit will continue to be available, subject to the overall availability of sterling export finance, for the official or Development Banks of the "intermediate" or "less developed" countries, with certain exceptions which have hitherto been regarded as "mandatory" markets for purposes of foreign currency finance of export credit (these are the list "A" foreign currency markets). For a further list of "intermediate" and "poor" markets which have been regarded as "preferred" for foreign currency finance (our list "B" markets) new or "renewal" sterling general purpose lines of credit will be considered only if firm prospects of their being substantially used are established at the outset.
LARI
1
174/
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