EXPORT CREDITS

Hawera & Normanby Star, Volume XLI, Issue XLI, 11 May 1921, Page 8

EXPORT CREDITS

NEW SCHEME EXTENDED TO DOMINIONS.

1 The announcement that the export credits scheme in a new form is to be I extended to exports to the Dominions was made on March 9 by Sir Robert Home, President of the British Board of Trade. | "instead of advancing 100 per cent of the cost to the manufacturer or exporting merchant in this country, as j we have done up to the present, we ' propose to guarantee up to 85 per cent of the invoice price of the goods on approved security."- said Sir Robert. The Government did not propose to give 85 per cent in every case, nor did they require security to be put up by the importer to the full value or the : full cost of the goods, but the exporter must put up at least 50 per cent , and the Government would guarantee = half the uncovered portion (25 per cent) .*■ \ The Government had not given up the hope of inducing the banks to take up a share of this business, and , had decided to guarantee 70 per cent I of "the loss of any transaction carried I thrAjgh by a banker, leaving the / batixer and exporter to share the 30 ! per cent. risk. j The Government felt the scheme ought not to be confined to the derelict countries of Europe, but that similar facilities ought to be given in ! th£ case of, trade with our own Doj minions. The security was much safer and the business was in every respect j quite as good. The scheme would be extended accordingly. The new schemw was heartily welI corned by Sir Watson P.utherford, who I congratulated the Board of Trade on I at last coming to their senses.