In November 1971 a Working Party composed of representatives of the relevant government departments, the London and Scottish clearing banks and the Bank of England was set up to review the existing special scheme for the finance of medium and long-term credit for exports and shipbuilding. Under these arrangements the banks undertook to make finance available at a fixed rate of interest agreed with the authorities and were able in certain circumstances to refinance part of it with the Issue Department of the Bank of England. The banks provided finance for exports against the security of guarantees from the Export Credits Guarantee Department, and for domestic shipbuilding against guarantees given by the Department of Trade and Industry under the Shipbuilding Industry Acts 1967 and 1971.
The finance of medium and long-term export and shipbuilding credits