UK New Legislation,The Export and Investment Guarantees (Limit on Exports and Insurance Commitments) Order 2024

The Export and Investment Guarantees (Limit on Exports and Insurance Commitments) Order 2024

On December 13, 2024, the UK government issued The Export and Investment Guarantees (Limits on Exports and Insurance Commitments) Order 2024. This order sets limits on the volume of exports and the amount of insurance commitments that the UK Export Finance (UKEF) can provide.

Key Provisions of the Order

  • Limits on export guarantees: The order limits the total value of export guarantees that UKEF can provide to £50 billion in each financial year.
  • Limits on insurance commitments: The order also limits the total value of insurance commitments that UKEF can provide to £500 million in each financial year.
  • Exceptions: The order includes exceptions for certain types of exports, such as those related to national security or humanitarian aid.

Purpose of the Order

The order aims to ensure that UKEF operates within its statutory limits and to manage the risk of financial losses to the UK government. By setting limits on the volume of exports and the amount of insurance commitments that UKEF can provide, the order helps to protect the UK taxpayer.

Implications for Businesses

The order may have implications for businesses that rely on UKEF support for their exports. Businesses may need to consider alternative sources of financing or insurance for their export activities if they exceed the limits set by the order.

Background

UKEF is a government-owned institution that provides financial support to UK businesses that export goods and services. UKEF offers a range of products, including export guarantees, insurance commitments, and project finance.

Additional Information

The order will come into force on January 1, 2025. Businesses that have any questions about the order can contact UKEF directly.

Export and Investment Guarantees (Limits on Exports and Insurance Commitments) Order 2024


The Export and Investment Guarantees (Limit on Exports and Insurance Commitments) Order 2024

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