Export Guarantees and Overseas Investment Act 1978
| Jurisdiction | UK Non-devolved |
| Citation | 1978 c. 18 |
| Year | 1978 |
(1) For the purpose of encouraging trade with other countries, the Secretary of State may, after consultation with the Export Guarantees Advisory Council and with the consent of the Treasury, make arrangements for giving such guarantees to, or for the benefit of, persons carrying on business in the United Kingdom as are mentioned in subsection (2) below.(2) The guarantees for which arrangements may be made under subsection (1) above are guarantees in connection with the export, manufacture, treatment or distribution of goods, the rendering of services, or any other matter which appears to the Secretary of State conducive to the purpose of encouraging trade with other countries.(3) A guarantee given under this section may be given on such terms and conditions as to the consideration for the giving of the guarantee and otherwise as may be determined in accordance with the arrangements made for giving that guarantee.(1) For the purpose of encouraging trade with other countries or for the purpose of rendering economic assistance to countries outside the United Kingdom, the Secretary of State may, with the consent of the Treasury, make arrangements for giving such guarantees to, or for the benefit of, persons carrying on business in the United Kingdom as appear to him to be expedient in the national interest; and subsection (3) of section 1 above shall have effect in relation to a guarantee given under this subsection as it has effect in relation to a guarantee given under that section.(2) For either of the purposes mentioned in subsection (1) above, the Secretary of State may, with the consent of the Treasury, make arrangements for facilitating, in cases in which it appears to him expedient in the national interest so to do, the payment of sums payable under contracts with persons carrying on business in the United Kingdom.loans to any persons in connection with their provision of financial facilities in respect of export contracts;grants to any persons for the purpose of supplementing any interest receivable or received by them as consideration for their provision of such facilities as aforesaid;(2) The Secretary of State may, with the consent of the Treasury, make grants to any persons carrying on business or other activities outside the United Kingdom in respect of interest paid or payable by them under export contracts.(3) Any loan or grant under this section shall be made on such terms and conditions as the Secretary of State may determine.(4) This section is without prejudice to the powers conferred by section 2(2) above.(1) The Secretary of State may, with the consent of the Treasury, acquire any securities which he has guaranteed in the exercise of his powers under this Act.(2) Subsection (1) above is without prejudice to the acquisition of any security by the Secretary of State as part of any arrangements made under section 2(2) above or in pursuance of the terms and conditions of any loan made under section 3(1) above.hold any security acquired by him in pursuance of subsection (1) above or as mentioned in subsection (2) above for such period as he thinks fit and collect any sums falling due, whether by way of principal or interest, in respect thereof;dispose of any such security at such time and in such manner as he thinks fit.(1) For the purpose of encouraging trade with other countries, the Secretary of State may, with the consent of the Treasury, make arrangements for making payments to persons carrying on business in the United Kingdom who have entered into export contracts, being payments related to such increases in the cost of labour, materials or other matters as may be specified by or under the arrangements.(2) Arrangements under this section may contain such terms and conditions as the Secretary of State thinks fit, including provisions requiring payments to be made to the Secretary of State as consideration for his entering into the arrangements.(3) Subject to subsection (4) below, no arrangements shall be made under this section after 26th March 1979.(4) The Secretary of State may by order extend the period during which arrangements may be made under this section by not more than one year at a time.the sterling liabilities at any time of the Secretary of State in respect of guarantees given under this Act;the amount of the principal moneys in sterling for the time being due to the Secretary of State under any arrangements made under section 2(2) above or outstanding in respect of loans made under section 3(1) above;of securities acquired under section 4(1) above and for the time being held by the Secretary of State, orof currency for acquiring such securities; andthe sterling liabilities at any time of the Secretary of State in respect of arrangements made under section 5 above;of the foreign currency liabilities at any time of the Secretary of State in respect of guarantees given under this Act; andof the amount of the principal moneys in foreign currencies for the time being due to the Secretary of State under any arrangements made under section 2(2) above or for the time being outstanding in respect of loans made under section 3(1) above;(3) The Secretary of State may, on not more that three occasions, by order made with the consent of the Treasury increase or further increase the limit applicable under subsection (1) above by a sum specified in the order, being a sum not exceeding £5,000 million.(4) The Secretary of State may, on not more than three occasions, by order made with the consent of the Treasury increase or further increase the limit applicable under subsection (2) above by a sum specified in the order, being a sum not exceeding 5,000 million special drawing rights.to guarantees given under this Act under which the Secretary of State incurs foreign currency liabilities, other than guarantees of an amount in special drawing rights; andto facilities arranged under section 2(2) above and loans made under section 3(1) above, under which amounts of principal moneys in foreign currencies, other than amounts in special drawing rights, are due to the Secretary of State or outstanding.(2) In the case of a guarantee to which this section applies the amount to be taken into account under section 6(2) (a) above at any time shall be calculated by reference to the equivalent in force at that time under subsection (4) below in special drawing rights of the amount of the foreign currency liability of the Secretary of State under the guarantee.(3) In the case of a facility or loan to which this section applies the amount to be taken into account under section 6(2) (b) above at any time shall be calculated by reference to the equivalent in force at that time under subsection (4) below in special drawing rights of the amount in the foreign currency due to the Secretary of State by virtue of the facility or outstanding in respect of the loan.
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