UK Export Finance
The term “ECGD” stands for Export Credit Guarantee Department. It is a separate department of the British Government. It was set up in 1919 to help British exporters to export goods to other countries. Like any other country, the UK also needs foreign exchange but there are more risks in exporting overseas than selling in the local market. The manufacturers and services providers are not willing to take such risks in selling their products and services overseas. The ECGD encourages the exporters to export more of their products and services by providing insurance against the commercial and political risks of not being paid by overseas buyers after goods were exported. A section of ECGD dealing with exporters trading on short terms of credit basis (i.e. up to two years) was sold to Atradius (formerly NCM Credit Insurance Limited) in 1991.