04.11.2009 After a process of consultation started in May, the UK's Export Credit Guarantee Department has approved a new mechanism to subsidise short-term export credits in light of the current global financial crisis' impact on British exports. This new 'Letter of Credit Guarantee Scheme' allows UK banks to help British exporters in their payments and ECGD believes that due to speed requirements of such agreements it is not realistic for the scheme to have to comply with the Departments current commitments on Human Rights, Enviroment and Bribery and Corruption.

A light-weight form of due diligence is being proposed by the ECGD but this has been discribed as falling short of what is required. Recourse rights if the violation of policies such as on the sustainable development or the environment comes to light are also failing, according to NGO obervers. Proposals have been made that if such speed is necessary, the ECGD should retain its ability to rescind the agreed cover of an exporter in the full due diligence later shows breach of department principles. However these proposals have been shrugged off, showing the government's long-term aims on preventing corruption, sustainable development and creating a green economy may already be in jeopardy.

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