| answer text |
<p>UK Export Finance (UKEF) supports UK exports, principally through the provision
of guarantees to banks extending loans to overseas buyers and insurance to UK exporters
against the risk of non-payment. From 1 May 2010 to 31 March 2014, the percentage
of guarantees and insurance policies issued by UKEF that have subsequently defaulted
resulting in a claim being paid, or where a claim is currently under examination,
is 0.2%.</p><p> </p><p>Given the tenor of transactions that UKEF typically supports,
which can be up to 15 years, an in-year default rate does not give a clear indicator
of the performance of UKEF's portfolio. In accordance with the financial objectives
and risk measures agreed with HM Treasury, UKEF measures the Expected Loss of its
portfolio. Expected Loss is the statistical estimate of the amount of UKEF's contingent
liability which could be expected to turn into claims that are irrecoverable. Full
details of UKEF's performance and risk management can be found in its Annual Report
and Account which is available in the libraries of the House.</p>
|
|
