Export and Investment Guarantees Act 1991

6 Commitment limits. U.K.

(1) The aggregate amount of the Secretary of State’s commitments at any time under arrangements relating to exports and insurance shall not exceed—

(a) in the case of commitments in sterling, £35,000 million, and

(b) in the case of commitments in foreign currency, 15,000 million special drawing rights.

(2) In subsection (1) above, “arrangements relating to exports and insurance” means—

(a) arrangements under section 1 or 2 of this Act, other than arrangements for giving grants or arrangements under section 1(3), and

(b) arrangements under the old law, other than arrangements for giving grants.

(3) The aggregate amount of the Secretary of State’s commitments at any time under section 3 of this Act shall not exceed—

(a) in the case of commitments in sterling, £15,000 million, and

(b) in the case of commitments in foreign currency, 10,000 million special drawing rights.

(4) The Secretary of State may by order increase or further increase—

(a) either of the limits in subsection (1) above by a sum specified in the order not exceeding £5,000 million or, as the case may be, 5,000 million special drawing rights,

(b) either of the limits in subsection (3) above by a sum specified in the order not exceeding £3,000 million or, as the case may be, 2,000 million special drawing rights,

but the Secretary of State shall not in respect of any limit exercise the power on more than three occasions.

(5) For the purposes of this section and section 7 of this Act—

(a) the commitments of the Secretary of State under any arrangements are his rights and liabilities relating to the arrangements,

(b) the amount of any commitments shall be ascertained in accordance with principles determined from time to time by the Secretary of State with the consent of the Treasury,

(c) “foreign currency” means any currency other than sterling, including special drawing rights and any other units of account defined by reference to more than one currency,

(d) whether any commitments are in sterling or foreign currency is to be determined by reference to the currency in which the amount of the commitments is measured (rather than the currency of payment) but, if the commitments are expressed to be subject to a sterling or foreign currency limit, the commitments are to be taken to be in sterling or, as the case may be, foreign currency, and

(e) the equivalent in special drawing rights of the amount of any commitments in foreign currency shall be ascertained at intervals determined from time to time by the Secretary of State with the consent of the Treasury and in accordance with principles so determined.

(6) A determination under subsection (5)(e) above may provide for leaving out of account for the purposes of the limit in subsection (1)(b) or (3)(b) above any amount by which the limit would otherwise be exceeded to the extent that the amount is attributable to—

(a) a revaluation of commitments under subsection (5)(e) above, or

(b) the fulfillment of an undertaking which, had it been fulfilled when given, would not have caused the limit to be exceeded.

(7) Any power to make an order under this section is exercisable only with the consent of the Treasury.

Commencement Information

I1 S. 6 wholly in force at 23.10.1991 see s. 15(6) and S.I. 1991/2430, art. 2