Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

Featured publications and stories

ECA Watch What's New August 2015

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • New coal-fired power enjoys support among bankers in Germany and Asia
  • Chinese lenders lead team to finance Indian coal power plant in Zambia
  • Europeans Rush to Profit from Iran Deal
  • Boeing strikes back hard at Export-Import bank opponents
  • SACE tops ECA table, as big-hitters see slowdown
  • WTO to partner with Nigeria's NEXIM bank to promote regional trade
  • Finnvera Group’s Interim Report for January-June 2015

New coal-fired power enjoys support among bankers in Germany and Asia

(ClimateWire, 13 August 2015) In the northern Greek city of Ptolemaida, a new 660-megawatt power plant that burns lignite, a plentiful soft brown coal, is scheduled to be built by 2020. The European Investment Bank has withdrawn funding from the project because of its high CO2 emissions and other pollutants, but the German government-owned development bank KfW, which has a large portfolio of green investments in Germany, is planning to provide half the money needed, roughly €800 million ($888 million) in loan guarantees. The deal has come at considerable expense to Germany's reputation as a climate leader. By funding the plant in Ptolemaida, KfW is helping to block the expansion of renewable energy, such as solar and wind power, while cementing coal-fired power into Greece's grid for decades.

http://www.eenews.net/stories/1060023389


Chinese lenders lead team to finance Indian coal power plant in Zambia

(Reuters, Singapore, 5 August 2015) Chinese banks are leading a group of lenders in financing a 300 MW coal-fired power plant in Zambia that is needed to meet rising demand from miners and an electricity-starved public... The new power plant is part of an $828 million project that includes revamping Zambia's biggest coal mine and aims to tackle power shortages that are curbing copper mining operations... The plant - to be commissioned by mid-2016 - is being constructed by Chinese companies... Nava Bharat Ventures, an Indian company holds a 65 percent stake in the project... China has pledged some $30 billion in credit lines to Africa over the last two years. It was the biggest foreign investor into infrastructure projects in Africa in 2013, with state export banks leading investments worth $13.4 billion, data from the African Development Bank showed.

http://www.reuters.com/article/2015/08/05/china-zambia-coal-financing-idUSL3N10B...


Europeans Rush to Profit from Iran Deal

(Jewish Voice, New York, 19 August 2015) Part 1: European politicians and business leaders, resembling the running of the bulls in Spain, are falling over themselves in a rush to secure the "first-mover" advantage in Iran's $400 billion economy. Under the nuclear deal reached in Vienna on July 14, international sanctions will be removed on Iran's banking, energy and trade sectors if Tehran agrees to certain curbs on its nuclear program. The lifting of sanctions on Iran, a market of 80 million consumers (the second-largest market in the Middle East after Turkey in terms of GDP) creates the potential for staggering business opportunities. Although the United States Congress will not vote on the accord until September, Europeans appear to be operating on the premise that Iran is now open for business.

Part 2 26 August  2015 This article summarizes many European export credit and other initiatives, while echoing Israeli concerns about the Vienna agreement.

Italian government mission in Iran

http://jewishvoiceny.com/index.php?option=com_content&view=article&id=11961%3Aeu...


Boeing strikes back hard at Export-Import bank opponents

(Fortune, 25 August 2015) In the months leading up to an expected vote to reauthorize the U.S. Export-Import bank, Boeing did what large corporations with lots of cash and deft political maneuvering skills often do so well. It spoke softly and lobbied hard, scattering a few pro-Export-Import soundbites from high-ranking officials where members of the media would find them and while spending millions on those representing its interests on Capitol Hill. Boeing loses large satellite deal due to trade credit woes. The Ex-Im Bank has become a major issue in US politics, with business asking for its reauthorization (and its subsidies) and elements of the Republican party arguing it undermines their preferred free market ideology. NYT: Revenge of the ideologes: Killing the Export Import Bank

http://fortune.com/2015/08/25/boeing-export-import-bank/


SACE tops ECA table, as big-hitters see slowdown

(TXF News, 20 August 2015) In a development that might raise a few eyebrows in the export finance world, Italian export credit agency (ECA) SACE has topped the ECA export finance table* in the first half of the year – according to TXF’s H1 Export Finance Report. Knocking the previously-unassailable Japan Bank for International Cooperation (JBIC) off its perch, SACE supported export finance volumes worth $4.05 billion in the first half – a staggering 249% year-on-year increase. The Italian institution’s star performance was matched by strong showings from its European counterparts, and contrasted by heavy declines for the traditionally-dominant US and East-Asian ECAs.

http://www.txfnews.com/News/Article/5193/SACE-tops-ECA-table-as-big-hitters-see-...


WTO to partner with Nigeria's NEXIM bank to promote regional trade

(Premium Times, Abuja, 28 August 2015) The World Trade Organization, WTO​,​ on Wednesday pledged to collaborate with the Nigerian Export-Import Bank, NEXIM, to explore areas of synergy to help remove trade barriers and provide better access to market commodities towards regional integration and poverty eradication.

http://www.premiumtimesng.com/business/banking-and-finance/189178-%E2%80%8Bworld...


Finnvera Group’s Interim Report for January-June 2015

(Globe Newswire, Helsinki, 13 August 2015) Finnvera’s mandates and tasks have expanded on several occasions during last year and the current year. In the period under review, it became possible for Finnvera to guarantee the refinancing of export credits granted by banks. This arrangement promotes the acquisition of funds for financing exports.

http://globenewswire.com/news-release/2015/08/13/760471/0/en/The-Finnvera-Group-...


What's New July 2015

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • Senate Resurrection of Export-Import Bank Goes to Divided House
  • EU tries again for compromise on deal to phase out coal aid via ECAs
  • France’s plans to end coal export credits at risk of cancellation
  • First ever offshore renminbi (RMB) financing - UKEF aircraft support
  • Italy, UK and Korea see billions in export boost from lifting of Iran sanctions
  • Japan's NEXI halts export insurance cover for Venezuela
  • U.S. Ex-Im Bank Suspends $1 Billion Loan for Energy in India
  • Moody's: Boeing will be hardest hit if Congress does not revive Ex-Im Bank
  • Russia extends military export credit of USD 200 million to Armenian

Senate Resurrection of Export-Import Bank Stalled by Divided House

(New York Times, Washington, 25 & 29 July 2015) In a rare and fiery weekend session, the Senate voted on Sunday to resurrect the federal Export-Import Bank, handing the Republican Party’s most conservative wing a major defeat and setting up a showdown this week with House leaders divided over the moribund export credit agency. Congress recessed on Wednesday however without reauthorizing the 81-year-old agency, leaving its future more uncertain than ever before. Though conservatives were all but claiming a scalp in their crusade to shrink government, the Ex-Im Bank is not closed entirely. It must still manage a $107 billion portfolio of loans and loan guarantees, It cannot, however, enter new contracts and without reauthorization it will wind down over time. An alliance of exporters will continue to lobby to revive the agency, then, in part by alerting local and national media to examples of export deals and jobs that are threatened if foreign buyers turn to companies in China, Russia and other countries that provide credit assistance.

http://www.nytimes.com/2015/07/27/business/senate-resurrection-of-export-import-...


EU tries again for compromise on deal to phase out coal aid via ECAs

(Reuters, Brussels, 27 July 2015) EU bosses are pushing to resolve a clash between industry and environmental policy with a new strategy to phase out funding to export coal technology to developing nations, ahead of a meeting of leading economic powers on the issue. The European Commission, the EU executive, urges tougher rules on when subsidies, known as coal export credits, can be used in a paper seen by Reuters, ahead of interim talks this week. Political pressure is growing to reach agreement on restricting the coal subsidies before United Nations climate change talks in Paris at the end of the year. But opposition is also strong. Negotiations at the Paris-based OECD in June ended in statemate as Japan, the biggest user of export credits that help companies such as Toshiba Corp to sell coal plant and mining technology abroad, led resistance.

http://uk.reuters.com/article/2015/07/27/eu-coal-idUKL5N10724H20150727


France’s plans to end coal export credits at risk of cancellation

(Bellona Foundation, Oslo, 20 July 2015) Earlier this year the French government announced plans to withdraw credits for the construction of coal power plants in developing countries (‘export credits’). The French President noted that guarantees would only be granted to plants equipped with Carbon Capture and Storage (CCS) technology. Bellona is, however, disappointed to find that France may be abandoning these promises due to feared economic losses for the energy sector.

http://bellona.org/news/climate-change/2015-07-frances-plans-end-export-subsidie...


First ever offshore renminbi (RMB) financing - UKEF aircraft support

(TXF News, London, 17 July 2015) The UK export credit agency and HSBC have teamed to arrange the first ever offshore renminbi (RMB) financing for an aircraft purchase – in this case the sale of a new Airbus A330-300 passenger aircraft to China Southern Airlines. The transaction represents a huge step forward in terms of export credit agencies (ECAs) expanding their range of new currencies to match the requirements of clients. [GTR: David Godfrey, UKEF chief executive, says: “[The] Rmb is already the second most used currency in trade finance after the US dollar and we fully expect to support many more such deals in the future.”]

http://www.txfnews.com/News/Article/5142/Landmark-deal-sees-UK-Export-Finance-an...


Italy, UK and Korea see billions in export boost from lifting of Iran sanctions

(Reuters, Milan, 14 July 2015) A gradual lifting of sanctions against Iran could lift Italian exports to the Asian country by around 3 billion euros ($3.3 billion) in the next four years, Italy's export credit agency SACE said on Tuesday. Meanwhile, Britain's export credit agency UKEF also announced on Tursday the initiation of a review of Iran to assess creditworthiness after a nuclear deal was reached between world powers and Tehran. South Korea's export credit agency also pledged to provide financial support to Korean firms trying to secure business in Iran, as industrial countries jockey to enter the market after the nuclear deal.

http://af.reuters.com/article/energyOilNews/idAFI6N0ZG01A20150714


Japan's NEXI halts export insurance cover for Venezuela

Argus, Kyoto, 13 July 2015) Japan's state-backed export insurance agency Nexi has suspended underwriting new insurance for trade and investment in Venezuela as the Latin American producer faces foreign currency shortages amid weaker oil prices. Nexi will halt issuing almost all new insurance policies for trade deals and investment in Venezuela tomorrow and some comprehensive export credit and buyers' credit insurance by 21 July. The move follows some Japanese trading houses failing to recover around ¥20bn ($160mn) in payments from Venezuelan firms for their automobile exports.

http://www.argusmedia.com/News/Article?id=1069520


U.S. Ex-Im Bank Suspends $1 Billion Loan for Energy in India

(Bloomberg, Washington, 7 July 2015) The U.S. Export-Import Bank’s $1 billion program to boost India’s clean-energy industry has been suspended after the institution’s lending authority lapsed, an Indian government official working on the project said. Indian Renewable Energy Development Agency Ltd., or Ireda, signed a memorandum of understanding with the U.S. export credit bank in November covering the program. The funding wasn’t finalized when the Ex-Im Bank’s charter expired on June 30.

http://www.bloomberg.com/news/articles/2015-07-07/u-s-ex-im-bank-suspends-1-bill...


Moody's: Boeing will be hardest hit if Congress does not revive Ex-Im Bank

(Moodys, New York, 22 July 2015) Without the renewal of the US Export-Import Bank charter, which Congress allowed to expire at the end of June 2015, aerospace giant The Boeing Company will take the biggest blow, says Moody's Investors Service in a new report. Moody's does expect that the US Congress will ultimately reauthorize the charter, but this is far from assured and the timing is unclear.

https://www.moodys.com/research/Moodys-Boeing-will-be-hardest-hit-if-Congress-do...


Russia extends military export credit of USD 200 million to Armenian

(Armenpress, Yerevan, 1 July 2015) The Foreign Affairs Committee of the National Assembly of Armenia has examined a Russian export credit agreement signed on June 26, 2015. The agreement was introduced into the National Assembly of Armenia by Ara Nazaryan, the deputy minister of defense, who said Russia will extend to Armenia a state export credit of USD 200 million to finance the purchase of Russian military hardware. The agreement was ratified by the Armenian parliament on July 2nd.

http://armenpress.am/eng/news/811006/russia-to-extend-a-state-export-credit-of-u...


What's New June 2015

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • Congress lets Export-Import Bank expire
  • OECD ECAs in stalemate over coal subsidy phase-out
  • More than $73bn of international public finance was given to coal between 2007 and 2014 via credit export agencies
  • Germany's KfW IPEX Bank finances non-polluting shipping AND fossil fuel carriers!
  • Sace guarantees US$200mn for Sonangol
  • US Ex-im: Conservatives vs Big Business
  • General Electric Says They'll Move Jobs Overseas If Ex-Im Bank Ends
  • Gulf countries receive billions in Ex-Im Bank subsidies
  • Dutch state violates own CSR procedures in Egypt's Suez Canal Expansion
  • First ECA-OECD Guidelines complaint submitted on Suape, Pernambuco, Brazil
  • UKEF reports achievement of enhanced capabilities in 2014-15
  • Will NewSat’s Failure Dim Ex-Im’s Appetite for Satellite Deals?
  • UK guaranteed over £130m in loans for repressive governments to spend on arms
  • Russia’s Sberbank and Italy’s Sace sign MoU
  • Despite sanctions on Russia ECA-backed business continues
  • $2 billion line of credit to Bangladesh to create 50,000 Indian jobs
  • The Crony Boondoggle For Ex-Im Bank Insiders

Congress lets Export-Import Bank expire

(USA Today, Washington, 30 June 2015 14:03 EDT) The charter for the Export-Import Bank of the United States expires at midnight Tuesday, delivering at least a short-term victory for fiscal conservatives and activists who targeted the 81-year-old institution as a free market distortion.

http://www.usatoday.com/story/news/politics/2015/06/30/export-import-bank-expiri...


OECD ECAs in stalemate over coal subsidy phase-out

(St. Louis Post-Dispatch, Brussels, 12 June 2015) Talks on phasing out a form of coal subsidies ended in stalemate as Japan, the biggest user of the aid, led calls for more time in defiance of this week's G7 pledge on fossil fuel subsidies, sources said. The Paris-based Organization for Economic Cooperation and Development has been trying for a year to get an agreement from its 34 member nations on phasing out export credits for coal, the most polluting of the fossil fuels. Sources close to talks in Paris on Wednesday and Thursday, speaking on condition of anonymity, said nations would review the situation over the summer ahead of further talks in September. An OECD spokesman, who asked not to be identified, confirmed the OECD's export credit committee planned to meet in September to debate further how "export credits can contribute to our common goal to address climate change." The pressure for a deal is strong, but so is opposition, especially from Japan, the biggest user of the credits that help companies such as Toshiba Corp to sell coal plant and mining technology abroad.

http://www.stltoday.com/business/local/rich-nations-in-stalemate-over-coal-subsi...


More than $73bn of international public finance was given to coal between 2007 and 2014 via credit export agencies

A substantial number of articles appeared this month highlighting massive export credit support for coal projects

Japan and South Korea top list of biggest coal financiers
Germany led EU's $5bn coal splurge
Japan Tops China as World’s Biggest Lender for Coal, Study Says
Japan, Germany, Korea fuelling growth of coal power
Public is Financing $73 Billion in Coal Development NRDC Report Reveals
Rich countries sweep billions in public finance for coal under the rug as climate deadlines loom
Australia given more than $4 billion in foreign subsidies for coal projects

The full Natural Resources Defense Council “Under the Rug” report is available here: http://docs.nrdc.org/international/files/int_15060201a.pdf

A database on coal financing in the report is here: http://priceofoil.org/content/uploads/2015/06/IFI-ECA-Coal-Investments-06-01-15-NRDC-OCI-WWF-FINAL.xlsb




Germany's KfW IPEX Bank finances non-polluting shipping AND fossil fuel carriers!

In two separate news items this month, KfW IPEX-Bank of Germany brags about financing the world's largest, non-polluting clipper ship along with Croatian ECA HBOR, while also arranging and closing a $186.3 million financing package to cover four new LNG carriers for the international liquefied petroleum gas trading and transport company Petredec along with Euler Hermes.




Sace guarantees US$200mn for Sonangol

(Global Trade Review, Rome, 5 June 2015) Italian export credit agency Sace has guaranteed a line of credit worth US$200mn for Angolan national oil company Sonangol, GTR is able to confirm.The goal is to increase the export of goods and services between Italian companies active in oil and gas in emerging markets, and sub-Saharan Africa in particular.

http://www.gtreview.com/news/africa/sace-guarantees-line-of-credit-to-sonangol/


US Ex-im: Conservatives vs Big Business

(Newsweek, Washington, 8 June 2015) The nearly 80-year-old federally run Ex-Im bank claims to cover its own costs—even generating a surplus—thanks to the interest it collects on loans. It claimed to support $27.4 billion in U.S. exports last year, less than 2 percent of all American exports. And its highly technical line of work offering export-related loan guarantees and export credit insurance to exporters and banks is hardly the sort of subject that’s going to galvanize the American public... And yet, thanks to the growing clout of a group of Tea Party–inspired members of Congress and their allies around the country, Ex-Im has become the latest litmus test of fiscal conservatism. Those trying to kill the bank, whose charter expires at the end of June 2015, believe its demise can be a springboard in their bigger fight to remake Washington.

http://www.newsweek.com/smackdown-conservatives-vs-big-business-340661


General Electric Says They'll Move Jobs Overseas If Ex-Im Bank Ends

(Bloomberg, Washington, 17 June 2015) General Electric Co. Chief Executive Officer Jeffrey Immelt threatened to move U.S. jobs overseas if Congress doesn’t reauthorize the Export-Import Bank’s charter, which expires at the end of June. “We’re not going to lose this business,” Immelt said Wednesday to the Economic Club of Washington. “We’ll build these products in places where export credit financing is available.” GE’s product lineup includes diesel locomotives, medical-imaging equipment and gas turbines. It’s also the biggest maker of jet engines, a business that risks being crimped without the Ex-Im financing for Boeing Co. jets. GE, one of the top three public company exporters in the U.S., has much to lose if the Ex-Im bank disappears: its overseas customers received more than $973 million in credit assistance from the bank last year, according to an Ex-Im annual report.

http://www.bloomberg.com/politics/articles/2015-06-17/ge-s-immelt-says-he-d-move...


Gulf countries receive billions in Ex-Im Bank subsidies

(Al-Monitor, Washington, 11 June 2015) Companies from Saudi Arabia and the United Arab Emirates together pulled in about $12 billion in trade financing over the past five years — 8.5% of the $141 billion global total — to help pay for nuclear reactors, industrial power generators and new fleets of Boeing jets. That includes a record-setting $5 billion loan to help Saudi Arabia build one of the world's largest petrochemical complexes... Turkey rounded out the top three Export-Import Bank financing recipients in the Middle East, with $4.5 billion for aircraft and power plant equipment, according to a review of five years’ worth of Ex-Im bank financial reports. Overall, companies in the Near East and North Africa accounted for 13% of Ex-Im trade financing from fiscal year 2010 through fiscal 2014, including a high of 27% in fiscal 2012.

http://www.al-monitor.com/pulse/originals/2015/06/us-export-subsidy-program-anal...


Dutch state violates own CSR procedures in Egypt's Suez Canal Expansion

(One World, Amsterdam, 4 June 2015) Evicting people from their homes is a major human rights violation according to the UN Commission on Human Rights. Therefore, it is disturbing that two Dutch companies are involved in the project that according to several reports in international media has already led to 2,000 evictions. Even more disturbing: the Netherlands guarantees the payment risks that Van Oord and Boskalis incur for this project. Van Oord and Boskalis applied for a so-called export credit insurance from Atradius Dutch State Business for the project from the Dutch state. The Corporate Social Responsibility (CSR) policy, prepared by the State and implemented by Atradius DSB, is based on guidelines drawn up in the OECD, the so-called Common Approaches,  which require an Environmental and Social Impact Assessment (ESIA). Atradius in an early March 2015 email to Dutch NGO Both ENDS noted that its efforts "to obtain information in connection with the environmental and social assessment... have not led to an ESIA, or sufficiently similar information for ex ante publication of the project." It thus appears that Atradius DSB issued an export credit insurance without an ESIA being available for this Cat A project. Political and economic considerations thus seem to have overruled the CSR policies of this ECA. 

http://www.eca-watch.org/node/3752


First ECA-OECD Guidelines complaint submitted on Suape, Pernambuco, Brazil

(Both Ends, Amsterdam, 5 June 2015) At the beginning of June an OECD Guidelines complaint was filed with the NCPs of Brazil and the Netherlands against the Dutch dredging company Van Oord and the Dutch ECA Atradius Dutch State Business on the adverse social and environmental impacts caused by ECA supported dredging projects in Suape, Pernambuco, Brazil. This first ever OECD Guidelines complaint against an ECA has been filed by the Associação Fórum Suape Espaço Socioambiental, Conectas Direitos Humanos, Colônia de Pescadores do Município do Cabo de Santo Agostinho (Z08) from Brasil and Both ENDS from the Netherlands.

http://www.eca-watch.org/node/3750


UKEF reports achievement of enhanced capabilities in 2014-15

(The Economic Voice, London, 18 June 2015) UK Export Finance, the UK’s export credit agency and a government department has laid its 2014-2015 annual report before Parliament. It reported clear progress throughout 2014-2015, both on the support it provided exporters and on the development of capabilities in line with its three-year business plan published at the start of the year.

http://www.economicvoice.com/ukef-reports-achievement-of-enhanced-capabilities-i...


Will NewSat’s Failure Dim Ex-Im’s Appetite for Satellite Deals?

(Military Technologies, Singapore, 1 June 2015) Satellite operators on June 1 expressed concern that the U.S. Export-Import Bank and France’s Coface, the world’s two most-active export agencies (ECAs) in funding satellite projects, might reduce their support for the industry in light of the failure of start-up satellite operator NewSat of Australia. But these operators were far from unanimous about whether the failure, in which the Ex-Im Bank has definitively lost well over $100 million, would have a long-term chilling effect on ECA financing for satellite projects. Coface’s loss, as a backer of NewSat’s launch contract with Arianespace of Europe, is uncertain and is much less than the Ex-Im Bank’s as backer of the satellite construction contract.

http://www.military-technologies.net/2015/06/01/will-newsats-failure-dim-ex-ims-...


UK guaranteed over £130m in loans for repressive governments to spend on arms

(The Independent, London, 18 June 2015) Britain has guaranteed more than £130m in loans for repressive governments to spend on arms in the last year, new figures show. Indonesia already owes Britain £246m from historic loans, however this year the UK government has guaranteed a further £132m of loan for the country to purchase arms. The loan guarantee has been used by the Indonesian military to purchase the British-built Starstreak anti-aircraft missile, to the dismay of anti-arms trade campaigners. New figures for 2014 also show that UK Export Finance, Britain’s official export credit agency, backed a bond of £190,000 to allow Saudi Arabia to purchase “unspecified” arms. The figures come as a Jubilee Debt Campaign report claims that 75 per cent of the export owed to debt is “illegitimate” and much of it comes from past loans for arms sales to repressive regimes.The figures come as a Jubilee Debt Campaign report claims that 75 per cent of the export owed to debt is “illegitimate” and much of it comes from past loans for arms sales to repressive regimes.

http://www.independent.co.uk/news/uk/politics/uk-guaranteed-over-130m-in-loans-f...


Russia’s Sberbank and Italy’s Sace sign MoU

(Global Trade Review, St. Petersburg, 15 June 2015) Sberbank of Russia and Italia export credit agency Sace signed a memorandum of understanding (MoU) during the St. Petersburg International Economic Forum... Despite the sanctions, Russia remains an important partner for Italy. Alessandro Castellano, Sace’s CEO remarks: “With over €4.4bn of exposure in our portfolio, Russia remains the top foreign market for Sace.

http://www.gtreview.com/news/europe/russias-sberbank-and-italys-sace-sign-mou/


Despite sanctions on Russia ECA-backed business continues

(TFX, London, 12 June 2015) Despite the current sanctions environment, an anonymous industry poll at the recent TXF ECA Finance conference in Paris, suggested 25% of the audience had completed an ECA-backed transaction into Russia in 2015. The poll, which had close to three hundred respondents including banks, ECAs, exporters and borrowers, asked not only when was participants last ECA-backed deal into Russia, but also when would be their next such transaction. 26% said their next deal into Russia would be in the second half of 2015, and 12% said their next would come within quarter two. In particular, 55% of export credit agencies (ECAs) polled said their next deal into Russia would come this year, with 65% of European ECAs. The results seem to demonstrate that despite the current situation, some deals are getting done, and that it is possible to complete transactions that do not violate international sanctions law.

http://www.txfnews.com/News/Article/4032/Russian-ECA-backed-continues-to-see-som...


$2 billion line of credit to Bangladesh to create 50,000 Indian jobs

(Times of India, New Delhi, 7 June 2015) What is good for Bangladesh is good for India. The government is extending a $2 billion line of credit to its neighbour which is expected to create 50,000 jobs in India and provide a big boost to the government's Make in India drive. A line of credit is a promise to provide loans at subsidized rates from agencies such as Exim Bank. These are normally conditional on the recipient using the loan amount to buy equipment and services from Indian entities such as BHEL, RITES, small and medium enterprises.

http://timesofindia.indiatimes.com/business/india-business/2-billion-line-of-cre...


The Crony Boondoggle For Ex-Im Bank Insiders

(Forbes, Washington, 15 June 2015) [Comment/blog from Adam Andrzejewski of American Transparency, Burr Ridge IL] Between now and the end of June, Congress will decide the fate of the federal agency, Export – Import Bank (Ex-Im) of the United States, either by doing nothing and letting the bank expire or by voting to let the bank continue. Critics say the bank is the epitome of cronyism, corruption and corporate welfare. Supporters, on the other hand, argue the bank boosts our national security, supports domestic jobs, and levels the global economic playing field. American Transparency (OpenTheBooks.com) fact checked the claims of politicians and pundits with the release of a 30 page Federal Transfer Report – Export – Import Bank. One special section of our oversight report addresses a topic that hasn’t received much attention. We looked at large private banks that have processed more than $125 billion in Ex-Im supported transactions since 2007. These private-sector bank beneficiaries processing Ex-Im supported transactions around the world have so far avoided intense scrutiny. They include Citibank, JPMorgan Chase, New York Mellon, Deutsche, Bank of America, and many others.

http://www.forbes.com/sites/adamandrzejewski/2015/06/15/the-crony-boondoggle-for...


Pages