asked the Minister for Industry and Commerce if he will give details of any long term easy credit facilities which are available to Irish companies wishing to secure foreign contracts; and if he will give details of such contracts which have been secured by Irish companies in the years 1983, 1984 and 1985 in countries outside the EC.
Written Answers. - Long Term Easy Credit Facilities.
54.
Limerick East): The Insurance Corporation of Ireland operate an export credit insurance scheme on my behalf offering cover against commercial and political risks. This assists the export of Irish goods and services worldwide. In line with normal underwriting practice the degree and conditions of cover are determined by market conditions in the buyer country.
On the security of their export credit insurance policies exporters have access to preferential finance from the associated and non-associated banks.
Capital goods exports to countries outside the EC are governed by the international arrangement for officially supported export credits administered by the OECD. The difference between the concessionary rates and the actual cost of borrowing money represents a subsidy for exporters which is borne on my Department's Vote.
The following table shows the number of export credit insurance policies issued during 1983, 1984 and 1985 in respect of capital goods exports to countries outside the EC, the estimated amount of financing organised on the security of these policies and the amount of subsidy borne on my Department's Vote.
|
Year |
Number of Policies |
Amount of Financing |
Amount of Subsidy |
|
1983 |
20 |
£11.9m. |
£1.978m. |
|
1984 |
11 |
£5.7m. |
£1.422m. |
|
1985 |
13 |
£11.5m. |
£0.955m. |
The drop in the amount of subsidy paid reflects, inter alia, the developing convergence between market interest rates and consensus rates.
The Deputy will appreciate that the contracts involved are private.