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UK joins 15 countries in offering state cover for Iraq exports

IRNA

London, Dec 6, IRNA -- Britain has joined 15 other countries in 
offering state cover for exports to Iraq for the first time since the 
1991 Persian Gulf War against the occupation of Kuwait in a bid to 
jump-start the country`s economy. 
The government`s Export Credit Guarantee Department (ECGD) is 
providing short-term cover, limited to Dlrs 100 million, for letters 
of credit issued in respect of exports that meet the humanitarian 
needs and economic reconstruction of Iraq. 
Trade and Industry Secretary Patricia Hewitt said on Friday that 
the facility "represents an improved opportunity for UK exporters to 
take part" and was "further evidence of the UK`s commitment to making 
sure that the people of Iraq have every assistance." 
The cover is being offered in the face of hundreds of millions of 
pounds of debts incurred by ECGD, when the British government granted 
loans to Iraq to finance arms deals in defiance of its own guidelines 
during Saddam Hussein`s war against Iran. 
The British line of credit was part of an agreement signed in 
Rome by 17 credit agencies from 16 countries, including the United 
States and Japan, to insure payment of up to Dlrs 2.4 billion worth 
of exports to Iraq, unrelated to donor pledges made at the Madrid 
conference in October. 
France, which was vehemently opposed to war in Iraq, is one of 
the countries that refused to participate in the framework agreement 
signed with the Anglo-American Coalition Provisional Authority (CPA). 
ECGD said the facility to write business was for the duration of 
the CPA and instead that defence exports will not be eligible for 
cover. 
HC/BH/212 
End