Notes to the consolidated financial statements

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31 March




Guarantees of loans and overdrafts of joint ventures and associates


Trade guarantees



In addition to the above we have guaranteed the obligations of certain subsidiaries and joint ventures to Payment Agencies in connection with Restructuring Aid. The Group’s share of these guarantees is £6 million (2009 – £66 million).

Other trade guarantees have been given in the normal course of business by the Group at both 31 March 2010 and 31 March 2009. These are excluded from the figures given above and are in respect of Revenue and Customs and the Rural Payments Agency for Agricultural Produce bonds, ECGD recourse agreements, letters of credit and tender and performance bonds.

The Group is subject to claims and litigation generally arising in the ordinary course of its business, some of which are for substantial amounts. All such actions are strenuously defended but provision is made for liabilities that are considered likely to arise on the basis of current information and legal advice and after taking into account the Group’s insurance arrangements.

While there is always uncertainty as to the outcome of any claim or litigation, it is not expected that claims and litigation existing at the balance sheet date will have a material adverse effect on the Group’s financial position.