§ Lord Shutt of Greetland
asked Her Majesty's Government:
For what reasons, in respect of defence related exports supported by the Export Credits Guarantee Department, was there a shortfall between claims paid (£789 million) and premiums paid (£213 million) for the year 1999–2000. [HL574]
§ Lord Sainsbury of Turville
The level of claims paid by ECGD in 1999–2000, both overall (£296 million) and in respect of defence business (£152 million), was largely affected by claims paid in respect of business with Indonesia insured earlier in the 1990s.
Payments from Indonesia are currently being received under the terms of Indonesia's Paris Club rescheduling and ECGD expects to recover in due course the claims which it is paying currently on Indonesia.
Premium income in 1999–2000 of £102 million (of which £27 million related to defence business) was in respect of new business supported in the year and not the business from earlier in the 1990s which was the subject of claims in 1999–2000.