UK Export Finance (UKEF) has published a short guide explaining how it considers the application forms submitted by companies seeking its support.
Available on the GOV.UK website, the guide lists the possible types of assessment.
These include that: the support requested falls within UKEF’s statutory powers; giving that support would, considering the premium UKEF would charge, constitute an acceptable financial risk to the taxpayer; and the environmental, social and human rights (ESHR) risks and impacts of the case are acceptable.
UKEF then gives details of the financial, ethical and anti-bribery and corruption factors which it takes into account.
In accordance with its Mission and Principles Statement, UKEF abides by factors included in documents published by the Organisation for Economic Cooperation and Development (OECD). These “International Documents” are as follows:
- ESHR risk management — the revised Council Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “Common Approaches”)
- Sustainable Lending — Principles and Guidelines to Promote Sustainable Lending Practices and the Provision of Official Export Credits to Low Income Countries (the “Lending Principles”)
- Bribery and Corruption — the OECD Council Recommendation on Bribery and Officially Supported Export Credits (the “Bribery Recommendation”).
A flow-chart that sets out the main processes by which UKEF typically considers the ESHR risks and impacts of cases, and a note on Human Rights and Social Risks and Impacts, can be found on the GOV.UK website.
