Britain underwrites exports

Britain underwrites exports

LONDON (AFP): The British government on Monday moved to
encourage small-scale trade with Indonesia with a pledge to
underwrite export contracts, a year after private insurers pulled
out in the face of economic and civil turmoil there.

"Indonesia has traditionally been one of Britain's major
trading partners. Although the country is experiencing some
serious economic difficulties at present, we remain hopeful that
it will pull through before too long," British Trade Minister
Brian Wilson said.

The announcement followed a decision by G7 finance ministers
in February 1998 to ensure that adequate short term credit
facilities for Indonesia were maintained.

Private short term credit lines, which cover consumer goods
such as spare parts and foodstuffs, to exporters have been cut
amid deep-seated unrest sparked by economic crisis and the
collapse of President Soeharto's military rule in Indonesia.

Wilson said that the Export Credits Guarantee Department, the
official British export credit agency, would now underwrite
export contracts for consumer goods.

"The provision of a reinsurance facility from ECGD should go
some way to ensuring that Indonesia is not starved of the
necessary short term credit to enable those imports, essential
for the revival of Indonesian industry, to be purchased," the
minister said.