Importantly, these bets provide a liquid market for creditrisk, which lowers the cost of hedging for those with primary exposure, and provides the market with better information about whether Greece or General Electric is a good creditrisk.
The government's export credit agency, the Export Credits Guarantee Department (ECGD), will launch an Export Working Capital Scheme, a Bond Support Scheme, and will support banks offering foreign exchange hedging contracts to SMEs by sharing creditrisk.