Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, pursuant to the Answer of 4 March 2024 to Question 15586 on Export Credit Guarantees, whether Export Development Guarantee funding can be used to service existing company debts.

The Export Development Guarantee (EDG) is provided to enhance the borrower’s exporting capability. UK Export Finance assesses the intended use of funds on all EDG transactions.

Subject to the terms and conditions of the financing documents, if funds are provided with no explicit limitations, then they become part of the borrower’s general cash to be used in the normal course of business, which can include debt service.