Export finance doubling for trade with Peru
01 August 2017
Posted by: IOE&IT News
UK Export Finance (UKEF), the UK’s export credit agency, is doubling its support for UK trade with Peru to at least £4 billion (US$5 billion), providing an additional £2 billion (US$2.5 billion) for UK exports of goods, services and intangibles, supporting projects across all sectors, including infrastrucuture.
Following a market review of Peru, this decision to increase finance capacity will help Peruvian public and private sector entities access finance for projects sourcing UK goods and services. UKEF can now support transactions in 40 currencies, including the Peruvian sol. This will allow Peruvian buyers of UK goods and services to access finance in their own currency – or to “buy British, pay local.”
Anwar Choudhury, British Ambassador to Peru, said: ‘The UK government has demonstrated once again our commitment to doing business in Peru. By doubling the amount of financing available from UKEF —a total of £4 billion (US$5 billion)—to both government ministries and the private sector, we are making it easier for UK and Peruvian firms to do business together across a whole range of sectors. This is fantastic news’.
Earlier this year, UKEF annouced that it would be providing at least £175 million (US$200 million) to support projects in partnership with the Corporación Andina de Fomento (CAF), the Development Bank of Latin America.
UKEF and CAF are working together to identify projects for collaboration in Latin America, with a particular focus on the infrastructure, energy and water sanitation sectors, where there is an opportunity to source expertise, goods and services from the UK.
The collaboration recognises that Latin America is a priority region for UKEF, and one where there is significant potential for UK exporters. As the main funding body for large-scale infrastructure projects in South America, CAF spends around US$12 billion per year on projects. In 2015, CAF approved funding for Peru reached approximately US$2.4 billion.
Source: UK Export Finance