Wellington, June 24 NZPA - The Government is extending its short-term credit insurance guarantee for exporters by $100 million, Finance Minister Bill English said today.

The extension follows the Export Credit Office's initial $50 million facility for the guarantee, established in February, which is almost completely allocated.

Mr English said the extension would provide relief for exporters, help them maintain cash flows and keep people in jobs during the recession.

"The global downturn has affected the availability of both short and long-term trade credit," he said.

"That has left some exporters facing cancelled orders because of a lack of trade credit insurance."

Mr English said the Government had made it clear that one of the best ways to ensure New Zealand grew strongly out of the recession was to reduce borrowing and consumption and increase exports and investment.

"Ensuring our exports continue in the face of the global credit crunch will help achieve that."

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