Vol. 409 No. 1
25 Mr. J. O'Keeffe asked the Minister for Industry and Commerce whether his attention has been drawn to the extreme difficulties created for small companies by reason of the sudden withdrawal of the short term export credit scheme; and if he will either arrange for a continuation of the scheme for small companies or its replacement by another export credit financing support scheme specially designed for small companies.
The Deputy is referring to my recent decision to phase out the short term finance scheme under which guarantees are issued to commercial banks in respect of exports insured under the export credit insurance scheme. These guarantees have enabled commercial banks to advance short term finance to companies holding policies of export credit insurance in respect of goods or services exported on credit terms normally not exceeding one year. Exporters who currently avail of such guarantees have been notified of my decision to phase out the scheme. Those whose guarantees expire within a short period have been told that, on expiry, their guarantees may be extended for a limited period to allow them to make alternative financing arrangements for their exports. In no case have guarantee facilities been withdrawn suddenly from an exporting company.
