UK Export Finance introduces financing for British businesses in Laos
VIENTIANE (Vientiane Times/ANN) - UK Export Finance (UKEF), the United Kingdom’s official credit export agency, has added Laos to its list of supported countries, with a total country limit of £200m (US$260 million), the British Embassy in Vientiane announced this week.
The British Ambassador to Laos, Hugh Evans, noted that “This is a major milestone for UK-Laos trade and investment links. This step shows our confidence in the growing trade relationship between our countries and provides security for British companies wishing to do business in Laos”.
UKEF is a ministerial department of the UK government whose mission it is to make sure that no viable export fails for lack of finance or insurance. UKEF’s announcement marks the renewed commitment of the British Government to expand commercial relations between Britain and Laos.
According to the British Embassy, UKEF will now be able to help British businesses in Laos by providing attractive financing terms. It will also help UK businesses borrow at competitive interest rates from banks with the benefit of a strong guarantee backed by the UK government, or borrow directly from the UK government itself at competitive, fixed interest rates.
Moreover, UKEF can help maintain flexibility, with finance that can also be used to buy local supplies or supplies from other countries, alongside UK supplies.
Thus, UKEF’s mission is to provide attractive long-term financing that makes sourcing from the UK more competitive. UKEF’s flexible and innovative finance can make projects happen – and has already supported projects around the world, from transport infrastructure in Myanmar to the food industry in China.
The United Kingdom is already the tenth biggest investor in Laos and UKEF’s decision will further boost commercial ties.