MercoPress. South Atlantic News Agency

UK and Mexico sign memorandum to further expand and finance trade

UKEF Business Group Director Steve Dodgson and Bancomext Deputy General Director Finance Miguel Siliceo Valdespino during the ceremony in London.

The UK and Mexico signed in London a memorandum to further support trade and markets, and advance cooperation between the two countries export promotion organizations, UK Export Finance and Bancomext, Mexican Trade Development Bank.

 The agreement was signed by UKEF Business Group Director, Steve Dodgson and Bancomext Deputy General Director Finance Miguel Siliceo Valdespino. It follows a visit to Mexico City by senior UKEF senior officials, exploring the potential to work together on a Direct Lending basis. The intention to do this is set out in the extension to the existing MOU.

Crucially, should Bancomext join UKEF’s existing panel of 20 financial organizations approved to partner the UK’s export credit agency in delivering its Direct Lending Facility (DLF), UK exporters to Mexico could benefit from a £3 billion direct source of credit for the Mexican marketplace. The £3 billion facility is designed to help overseas buyers purchase goods and services from UK exporters.

Partner financial organizations on the DLF panel must meet demanding criteria covering their competence, capabilities, and level of expertise and experience in performing the services that underpin the arrangement and administration of specialized export credit finance.

UKEF Director, Steve Dodgson said his organization will try to help maximize the opportunities for UK exporters in Mexico’s markets underlining the important role to be played by the Direct Lending Facility.

“Panel members cover a wide range of overseas markets, with complementary geographical strengths that will make it easier for UK companies to arrange competitive loans throughout a worldwide network. That reach will increase UKEF’s capacity to lend to overseas buyers of UK products and services”, indicated Mr. Dodgson.

During the last five years UKEF has provided over 1,500 guarantees and insurance policies with an exposure value in excess of £14 billion.

UKEF supplements the financial support for exporters from the commercial sector and enables banks and other financial institutions to help more customers take advantage of international sales.

Under the DLF, UKEF will provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters. Loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen.