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Ref. Ares(2019)4063566 - 26/06/2019
Ref. Ares(2019)4291643 - 05/07/2019
I. Reporting country information
Reporting Country
UK
Submission Date
November 2016
Reporting Institution (Government
UK Export Finance (ECGD)
Department, ECA)
II. Reporting country legal and policy information
Mandate/Legal status of ECA
Government Department
Officially supported export credit
Buyer Credit Guarantees
Programs (in the sense of Article 5 of the Direct Lending
OECD Arrangement) during reporting Supplier Credit Guarantees
period
Exporter Insurance
Annual reports available on reporting
UKEF’s Annual Report and Accounts to the year
year
ending on 31 March 2016 was published on 11
July 2016. The report contains further
information on UK Export Finance and is
available at; ,
https://www.gov.uk/government/publications/ukef-
annual-report-and-accounts-2015-16
III. Information on the reporting Member State’s Export Credit policies:
General presentation of the reporting MS’ It is UKEF’s policy to comply with all
policies on export credits, including all International Agreements which apply to the
information that can help the Commission operations of Export Credit Agencies.
in carrying out its evaluation regarding the
compliance of the Export Credit Agencies
with EU objectives and obligations (in the
sense of Article 3, Annex 1 of EU
Regulation1233/2011)
Special information on the following
a) Yes.
policies:
b) UKEF
has
a
dedicated
team
of
1) Environment:
Environmental, Social, and Human Rights
a) Do you apply the OECD Council
specialists which review all transactions that
Recommendation on Common Approaches
fall within the ambit of OECD Common
on Officially Supported Export Credits and
Approaches for their environmental, social
and Human Rights risks and impacts. UKEF
Environmental and Social Due Diligence?)
also undertakes post-issue monitoring of
supported transactions to ensure ongoing
alignment with International Standards.
b) any other relevant information
See pages 99-101 of the Annual Report
2) Human rights:
a) Do you apply the Human Rights related a) Yes.
aspects of the Recommendation on
Common
Approaches,
on
Officially
Supported
Export
Credits
and
Environmental and Social Due Diligence?
b) Any other relevant information?
b) see reply above
3) Anti-Bribery measures:
a)
Do
you
apply
the
OECD a) Yes.
Recommendation
on
Bribery
and
Officially Supported Export Credits?
b) Annually UKEF reviews the applications which
it receives for support in accordance with its
b) Any other relevant information?
obligations
under
the
OECD
Council
Recommendation on Bribery and Officially
Supported Export Credits, and publishes on its
website statistical information about the operation
of its anti-bribery policies for the year in question.
See page 106 of the Annual Report.
4) Sustainable Lending Practices:
a) Do you apply the OECD Principles and a) Yes.
Guidelines
to
Promote
Sustainable
Lending Practices in the Provision of b) UKEF does not have delegated authority to
Official Export Credits to Low Income support exports to countries which fall within the
Countries?
scope of the OECD Sustainable Lending Principles
without the approval of HM Treasury and
b) Any other relevant information?
consulting with the Department for International
Development. See page 107 of the Annual Report
5) Other policies
IV.
Annual Activity Report data:
Explanatory note:
“MS shall report, in accordance with their national legislative framework, on assets and
liabilities, claims paid and recoveries, new commitments, exposures and premium charges."
From Regulation 1233/2011, Annex 1.
UKEF Accounts
UKEF operates five accounts. Accounts 1, 2, and 3 cover underwriting activities, while account 4 and 5
covers export finance activities, including direct lending.
Account 1 - relates to guarantees and insurance issued for business prior to April 1991 and also insurance
issued by the former Insurance Services Group of ECGD (the main part of which was privatised on 1
December 1991) for which ECGD retains contingent liabilities (‘Insurance Services Business’).
Account 2 - relates to the credit risk arising from products issued for business since April 1991.
Account 3 - relates to guarantees issued for business since April 1991 on the written instruction of
Ministers, which UKEF’s Accounting Officer advised did not meet normal underwriting criteria.
(There is currently no exposure under this account)
Account 4 - relates to the provision of Fixed Rate Export Finance ‘FREF’, (closed for new business),
together with arrangements for reducing the funding cost of FREF loans and for certain interest rate
derivative arrangements.
Account 5 – relates to the provision of direct lending (since 2014)
For purpose of completing this return;
Table A combines Account 1, 2 and 3. It also includes export credits with a repayment period below 2
years, and other products where the risk in on the exporter, which are not subject to the OECD
Arrangement.
Table B is Account 4 and 5.
A) In case of official support is provided in the form of export credit guarantee or
insurance (“pure cover”) in the sense of Art 5 a 1) OECD Arrangement:
Overview of assets (Annual Report and
£1,096m
Accounts 2015-16, p163)
Overview of liabilities (Annual Report
£898m
and Accounts 2015-16, p163,
exclude
payable to Consolidated Fund)
Aggregate nominal risk exposure
We do not provide a breakdown by accounts for risk
31-3-2016
exposure. The total is £22.1n (page 83)
a.) nominal risk exposure under insurance
and guarantee policies issued
Not available
31-3-2016
b.) nominal risk exposure under promises
and notices of cover
Not available
31-3-2016
(Net) Premium Income (Annual Report £73m
and Accounts, p165)
Recoveries (Annual Report and Accounts, Principal £133m
p171-172)
Interest £28m
Claims
paid
(Annual
Report
and £5m
Accounts, p171)
B) In case official support is provided in the form of Official Financing Support in
the sense of Article 5a2) OECD Arrangement:
Overview of assets (Annual Report and
Accounts 2015-16, p163)
£96m
Overview of liabilities (Annual Report £7m
and Accounts, p163,
exclude payable to Consolidated Fund)
a) nominal value of officially supported £286m of a £3bn scheme limit for Account 5
loan portfolio (Annual Report and Account 4 not available.
Accounts, p56 for Account 5)
31-3-2016
b) total value of off balance sheet £217m
commitments
(Annual
Report
and
Accounts, p193)
31-3-2016
Net Interest received (Annual Report and £7m
Accounts, p165)
Net Operating profit (Annual Report and £8m
Accounts, p162)
V.
Contingent liabilities
Where contingent liabilities might arise £17.1bn before reinsurance
from officially supported export credit
£11.7bn net of reinsurance
activities,
those
activities
shall
be
reported: (Annual Report and Accounts,
(Excludes products where the risk is on the exporter.
p193)
Includes both guarantee and insurance products)
VI.
Evaluation and incorporation of environmental risks
Environmental risks:
Page 99 of our annual report contains a three page article on
our activity in the field of Environmental, Social and Human
Rights due diligence.
a) Number/exposure of
4
transactions Category A
https://www.gov.uk/government/publications/environmental-
social-and-human-rights-risk-and-impact-categorisations-
2015-16/issued-cases-designated-as-category-a
b) Number/exposure of
5
transactions
https://www.gov.uk/government/publications/environmental-
Category B
social-and-human-rights-risk-and-impact-categorisations-
2015-16/issued-cases-designated-as-category-b
How are environmental risks, UKEF complies with the OECD Common Approaches and in
which can carry other relevant addition joined the Equator Principles on 31 March 2016. Our
risks, taken into account in the ESHR policy was updated to reflect this and is available on our
officially
supported
export website.
credit activities?