BRITAIN'S ECGD DISCUSSING NEW COVER FOR NIGERIA
Britain's Export Credits Guarantee
Department (ECGD) is holding talks with Nigeria aimed at
resuming insurance cover for British exporters to Nigeria, the
head of ECGD's international debt division, Gerry Breach, said.
    The ECGD suspended cover on Nigeria in 1984 after the
country fell into arrears on payments of insured and uninsured
debts.
    Following last week's bilateral accord between Britain and
Nigeria to reschedule the country's insured trade debts,
bankers had hoped that talks would commence on a resumption of
cover.
    Breach made his comments in an address to a private meeting
of businessmen, a copy of which was made available to the
press.
    Breach noted that for the ECGD to consider "a gradual
introduction of a package of new support" certain criteria would
have to be met.
    This would involve the Nigerian economic structural
adjustment program being put into effect and being endorsed by
the International Monetary Fund, the program remaining on
course and continuing to be endorsed by the IMF and a
satisfactory level of acceptance by the Nigerian government of
the ECGD insured short-term trade arrears.
    Breach said that these criteria are now beginning to be
satisfied, adding that while the ECGD could not yet formally
announce new cover, it was holding discussions with Nigeria on
priorities for new credits.
    He said an announcement would be made "as soon as possible"
on an agreement and the ECGD would create a package for Nigeria
that would include the department's normal range of export
trade support facilities.
    British exports to Nigeria exceeded 550 mln stg in 1986.
    Breach noted that since cover was removed, the ECGD has
maintained a limited amount of short-term trade cover for
Nigeria, which was backed by letters of credit from the
Nigerian Central Bank.
    While the ECGD would initially continue to use this
structure under a new package, it would also hope to expand the
volume of coverage in the short-term area and relax the terms
it is prepared to underwrite towards the commonly accepted
maximum of 180 days.
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