Just five firms have used a scheme designed to increase letter of credit (L/C)-backed British exports, according to reports in the UK media.

The Independent newspaper says the UK's Department for Business will soon announce the outcome of a review into what was supposed to be a flagship scheme to help exporters.

Inauspicious launch

The Export Enterprise Finance Guarantee Scheme (EEFGS) was launched in April 2011.

It was supposed to provide access to trade finance, which became hard to come by during the global financial crisis.

Low uptake

According to figures seen by the Independent, only £2.9 million has been lent under the scheme.

The EEFGS provides lenders with a guarantee of 60 per cent of credit extended while the customer pays an up-front premium of 3%, plus any fees.

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