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.

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What's New March 2016

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • Ethiopia's controversial Gibe IV dam secures Italian ECA finance
  • Why Germany will Struggle to Take on Iran’s Export Market
  • Iran signs first post-sanctions ECA deal with India Exim
  • Conservatives still blocking Export-Import Bank
  • In Boeing country, Clinton rips Sanders’ rancor toward Export-Import Bank
  • TXF Export Finance Report: ECA deal volumes drop by 29%
  • Trade credit insurers expect tough 2016
  • Coface closes Kurdistan deal despite two-year Isis delay
  • UKEF and Sinosure join forces to win new contracts
  • UKEF adopts Equator Principles

Ethiopia's controversial Gibe IV dam secures Italian ECA finance

(The Reporter, Addis Ababa, 12 March 2016) The long-awaited negotiation between Ethiopian Electric Power (EEP) and the Italian construction company, Salini Costruttori, has been finalized enabling the latter to commence with the building of the 2,200MW Gibe IV hydropower plant. The two institutions are also expected to formally ink an agreement shortly... Sources told The Reporter an Italian financial institution identified as Servizi Assicuative del Commerce Estero (SACE) has agreed to finance the project estimated at EUR 1.5 billion... The other massive Omo River hydroelectric power project–the 1,800-megawatt Gibe III–that was highly challenged by right groups in connection with indigenous tribes living around Lake Turkana was completed only a few months ago and has now started generating power partially. Construction of that dam began in 2006 with flagrant violations of Ethiopia’s own laws on environmental protection and procurement practices, and the national constitution. The project’s US$1.7 billion contract was awarded without competition to Italian construction giant Salini, raising serious questions about the project’s integrity. The Gibe III dam and expansion of large, irrigated plantations in the Lower Omo basin threatens the food security and local economies that support more than half a million people in southwest Ethiopia and along the shores of Kenya's Lake Turkana.

http://www.thereporterethiopia.com/content/gibe-iv-secures-finance


Why Germany will Struggle to Take on Iran’s Export Market

(The Market Mogul, London, 11 March 2016) Before the embargo, Iran was Germany’s most important European trade partner with almost $5bn in exports going to the country in the Middle East. Today, Germany wants to live up to earlier commercial successes after a considerable drop in exports during the trade embargo... Currently, there is no big European bank that engages in the financing of Iranian trade deals. European and specifically German banks are holding back export financing due to uncertainties in the market. One reason certainly is the missing due-diligence information about Iranian clients. More important, however, is the lack of export credit guarantees for the designated trades from Iran. Export credit guarantees are an essential part of German foreign trade policy, which protects German companies in the event of non-payment from its debtors. Many Iranian companies still hold old debt with German firms from trades before the embargo. Only when Iran has paid back its old debt of $560m are German banks willing to provide further export guarantees. While this issue should not be an obstacle, in the long run, it has and will certainly limit exports in the coming months.

http://themarketmogul.com/germany-will-struggle-take-irans-export-market/


Iran signs first post-sanctions ECA deal with India Exim

(Trade and Export Finance, London, 9 March 2016) The Export-Import Bank of India (India Exim) last month signed a $150 million line of credit with Iran's Bank of Industry and Mine (BIM) to finance rail upgrades in Iran. The deal, which will finance the supply of 150,000 tonnes of steel railway tracks from Indian exporter State Trading Corporation, is Iran's first post-sanctions export finance agreement... The project is linked to a wider Chinese-backed project to electrify more than 900 kilometres of railway between the capital of Tehran and the north eastern city of Mashad.

http://www.txfnews.com/News/Article/5470/Iran-signs-first-post-sanctions-ECA-dea...


Conservatives still blocking Export-Import Bank

(Houston Chronicle, Houston, 3 March 2016) The fight to empower a government agency that ensures U.S. companies can compete around the world, and even makes money for the taxpayer, is sadly not over. Ex-Im can't close any deals exceeding $10 million because of conservative opposition in the Senate... The Ex-Im bank is the latest victim of a conservative minority refusing to compromise. The bank board needs three of five directors to reach a quorum, but the chairman of the Senate Banking Committee refuses to fill one of three open seats... The lack of a quorum has held up six deals worth $2.6 billion so far.

http://www.houstonchronicle.com/business/columnists/tomlinson/article/Conservati...


In Boeing country, Clinton rips Sanders’ rancor toward Export-Import Bank

(Seattle Times, Seattle, 22 March 2016) The obscure U.S. Export-Import Bank moved to center stage in Washington’s Democratic presidential contest, as Hillary Clinton and her allies chided Bernie Sanders for opposing the bank, which plays an outsized role in this state. Speaking Tuesday at the Machinists union hall in Everett, Clinton said “I just shook my head” when Sanders joined conservative Republicans in criticizing the bank as a vehicle for corporate welfare... In Washington state, the bank reports that 162 of the 238 exporters it has helped in the last decade are small businesses... But the vast majority of the bank’s help to Washington companies, in terms of dollars, has gone to loan guarantees for financing foreign buyers of Boeing’s planes. Since 2007, $64 billion of the bank’s $65 billion in insured shipments, guaranteed credit or loans disbursed for Washington companies has gone to help Boeing.

http://www.seattletimes.com/seattle-news/politics/in-boeing-country-clinton-rips...


TXF Export Finance Report: ECA deal volumes drop by 29%

(Trade and Export Finance, London, 1 March 2016) The global volume of export credit agency (ECA) deals has fallen by nearly a third compared to 2014, according to TXF Data's 2015 Export Finance Report. In 2014 ECAs supported $119.33 billion of deals, but TXF's latest report reveals that the global total of all ECA transactions for 2015 was $84.63 billion – a drop of 29% year-on-year... Coface, the French export credit agency (ECA), was the single most active ECA in 2015 supporting a total of $7.73 billion worth of transactions while HSBC was the biggest lender of export credit agency (ECA) debt in 2015, signing a total of $4.54 billion of ECA-supported debt to borrowers... The report, which reviews all ECA transactions, calculates the most active ECAs by covered volume in 2015 by taking each ECA direct loan and guarantee and adding the total. The report only focuses on medium and long-term (MLT) debt and is based on deals submitted to www.tagmydeals.com...The report, which reviews all ECA transactions in 2015, calculates the top five lenders of last year by taking each bank’s individual exposure to every ECA deal and then adding the total. The report does not capture the most active bookrunners or arrangers of ECA debt but measures bank participation across all ECA-backed loans. HSBC topped the table with $4.54 billion, while Sumitomo Mitsui Banking Corporation (SMBC) was the second largest lender of ECA deals with $4.19 billion, Société Générale was the third largest ECA lender with $4.11 billion, ING Bank ranked fourth with $3.84 billion, and Crédit Agricole CIB was fifth overall offering $3.69 billion of ECA-supported loans to borrowers.

http://www.txfnews.com/News/Article/5453/TXF-Export-Finance-Report-ECA-deal-volu...


Trade credit insurers expect tough 2016

(Global Tade Review, London, 30 March 2016) A survey by members of the Berne Union and of the International Credit Insurance and Surety Association (ICISA) expect a mixed 2016 for trade credit insurance, with growth in premium income and insured turnover, but increases in claims and insolvencies in almost all regions... The joint survey was also an opportunity to highlight the increased co-operation between government-backed ECAs and the private sector... Kai Preugschat, secretary general of the Berne Union, explains: “We see increased co-operation between ECAs and private insurers, often with private members reinsuring ECAs. Private insurers have the advantage of the untied nature of their products, whereas ECAs are tied to the specific rules of their respective mandates.

http://www.gtreview.com/news/global/trade-credit-insurance-tough-2016/


Coface closes Kurdistan deal despite two-year Isis delay

(Trade and Export Finance, London, 23 march 2016) After two years of delays resulting from the war with Isis, French export credit agency (ECA) Coface last month provided its first ever guarantee in Iraqi Kurdistan to fund the purchase of turbines for the country’s Bazian power plant.

http://www.txfnews.com/News/Article/5487/Coface-closes-Kurdistan-deal-despite-tw...


UKEF and Sinosure join forces to win new contracts

(Global Trade Review, London, 23 March 2016) UK Export Finance (UKEF) and the China Export & Credit Insurance Corporation (Sinosure) have signed a mutually beneficial framework agreement aimed at increasing UK and Chinese exports... The agreement will see the two export credit agencies (ECAs) co-operate in supporting contracts in third countries involving both UK and Chinese exports... The agreement will also facilitate co-operation between Chinese and UK firms as they compete for business in other countries. As such, UKEF and Sinosure will work together to identify opportunities for trade in capital goods, equipment and services involving co-operation between the two countries.

http://www.gtreview.com/news/europe/ukef-and-sinosure-join-forces-to-win-new-con...


UKEF adopts Equator Principles

(Global Trade Review, London, 31 March 2016) UK Export Finance has adopted the Equator Principles, a global framework aiming to promote sustainable project financing. Introduced in 2003 and already adopted by 80 financial institutions, the Equator Principles are a risk management framework to determine, assess and manage environmental, social and human rights risk in projects... “This global framework will give UK exporters supported by UKEF confidence that environmental, social and human rights issues that may carry ethical or reputational risk have been given consideration as part of UKEF’s support to relevant projects. In adopting the Equator Principles, we do not anticipate any additional administrative burden to UK exporters applying for export finance support.

http://www.gtreview.com/news/europe/ukef-adopts-equator-principles/


What's New February 2016

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • US Ex- Im Bank confirms serious labour rights violations at Reliance’s Sasan Power Project
  • ECAs shy away from ‘dirty’ coal deals
  • How new French ECA Bpifrance will differ from Coface
  • Proposal for UK aid money to be used to promote western exports
  • UK Government responds to UK Export Finance anti-bribery and corruption consultation
  • Reliance’s new ‘shopping line’ deal covered by Euler Hermes takes petchem spree to $17bn
  • Iran signs historic deal with Airbus with key ECA financing
  • Sinosure said to blacklist Nigeria

US Ex- Im Bank confirms serious labour rights violations at Reliance’s Sasan Power Project

(Srijan Lokhit Samiti, 9 February 2016) The Export Import Bank of the United States, a financer of Reliance’s Sasan Power Project in Madhya Pradesh, confirmed serious labour rights violations at the project, including 19 deaths. In the report “Report on Project Financing of Sasan Power Limited” dated September 2015, by the Office of Inspector General of the US governments's ExIm bank, it has been confirmed that Ex-Im Bank’s Chairman expressed his continued disappointment to the CEO of Reliance regarding the “poor safety” practices at the Project. In particular, the Chairman’s letter stated, “the number of all fatalities at the integrated Project is now 19 - which is both tragic and absolutely unacceptable.” Despite that, nothing changed on the ground. Most of these cases were not investigated, nor action taken against the Reliance for this serious lapses. Ex-Im Bank, despite expressing concerns about these cases, failed to take any action to ensure that such cases do not recur. A 15 October 2015 Los Angeles Times article also found that "the privately run Sasan power project — backed by hundreds of millions of dollars in U.S. government funding — has also generated land disputes, health and environmental concerns and financial hardship for villagers who say it has delivered little of what was promised."

https://lokhitsamiti.wordpress.com/2016/02/09/us-ex-im-bank-confirms-serious-lab...


ECAs shy away from ‘dirty’ coal deals

(Trade & Export Finance, London, 8 February 2016) Low prices and dwindling sources of finance are forcing coal producers to turn increasingly to export credit agencies (ECAs) to support their capital needs. But ECAs and their governments, increasingly driven by environmental concerns, show little or no appetite for coal projects... In December 2015, the participants in the OECD Arrangement on Officially Supported Export Credits agreed new restrictions on providing support to inefficient coal power stations, specifically as a way of tackling climate change... The OECD coal ruling was surprisingly popular among member states, with only Australia and Japan consistently opposed to the proposal...After two years of negotiations, the final agreement made one concession, which allows ECAs to support high-efficiency coal project deals.

http://www.txfnews.com/News/Article/5433/ECAs-shy-away-from-dirty-coal-deals#


How new French ECA Bpifrance will differ from Coface

(Trade & Export Finance, London, 29 January 2016) A new law was passed in France last month which will change the face of the country's export credit agency (ECA). After nearly 70 years as France's ECA Coface is set to transfer the handling of state export credit guarantees to French public investment bank, Bpifrance. The change is due to take place at some point in 2016. Sources close to the market state that the move will have a wider impact on French export credit guarantees than merely a name change, and predict that some of the changes could even ensure cheaper pricing on French ECA deals. One of the big amendments which is set to happen is the French state's introduction of direct, rather than indirect guarantees for Bpifrance cover.

http://www.txfnews.com/News/Article/5424/How-new-French-ECA-Bpifrance-will-diffe...


Proposal for UK aid money to be used to promote western exports

(Jubilee Debt Campaign, Liege, 10 February 2016) The UK’s Department for International Development is considering using aid money to subsidise lower interest rates for export credits for some low income countries... Under OECD rules, Western government export credit agencies, such as UK Export Finance, are only supposed to lend to low income country governments at lower interest rates. But UK Export Finance does not have such a ‘concessional lending’ arm so the UK government claims it is currently blocked from supporting exports to some low income countries. The response to this problem is to propose to use UK aid money to subsidise lower interest rates. However, it is debatable whether it would be illegal under UK law to subsidise loans tied to British exports, so the proposal is for these subsidies to be available to any export credit agency.

http://cadtm.org/Debt-policy-update-from-Jubilee


UK Government responds to UK Export Finance anti-bribery and corruption consultation

(UK Export Finance, London, 28 January 2016) The UK Government's response to its anti-bribery and corruption consultation was published on 28th January 2016. The response is the result of almost a year of consultation. Responses were invited from interested parties by 15 May 2015. Ten responses were received, including from financial institutions, consultancies, Non-Governmental Organizations (NGOs) and one law firm. The report includes annexes reproducing respondent submissions, including ECA Watch member The Corner House (p.29)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/495926...


Reliance’s new ‘shopping line’ deal covered by Euler Hermes takes petchem spree to $17bn

(Trade & Export Finance, London, 9 February 2016) Reliance Industries’ latest €950 million ($1.04 billion) export credit agency (ECA)-backed deal is expected to push its capital expenditure spree in refinery and petrochemical expansion projects to approximately $17 billion. The Mumbai-based conglomerate – with business across India engaged in energy, petrochemicals, textiles, retail and telecommunications – signed an innovative ‘shopping line’ credit facility with nine banks in December. This deal, which has an 11-year tenor and is covered by German ECA Euler Hermes, will fund the purchase of equipment primarily from German engineers Linde and MAN for Reliance’s largest existing petrochemicals plant, located in Jamnagar in the north-western province of Gujurat.

http://www.txfnews.com/News/Article/5434/Reliances-new-shopping-line-deal-takes-...


Iran signs historic deal with Airbus with key ECA financing

(Trend News Agency, Baku, 30 January 2016) Over the past ten years and after the removal of crippling nuclear-related sanctions on Iran, Hassan Rouhani was the first Iranian president to visit Europe breaking the deadlock over ties between the Islamic Republic and its traditional trade partners. In addition to a raft of deals ranging from energy to industry and environment, Rouhani paved the way for signing a deal which surely opens a new chapter in the history of Iran’s aviation which has suffered from a worn-out fleet over the past decades claiming at least 1,168 lives between 1979 and 2014. After 21 years of embargo on Iran’s aviation, finally on January 28, Tehran signed a historic deal with Airbus for the purchase of 118 airliners (73 widebodies, 45 single aisle) including 12 A380 superjumbos worth $25 billion at list prices...  The airbus deal would not be inked if was not the financial contribution that Rouhani secured at the first stop of his Europe tour in Rome, where the Italian Export Credit Agency, SACE, and Iran’s Central Bank (CBI) signed a settlement agreement for the recovery of the sovereign credit due to SACE by Iranian counterparties.

http://en.trend.az/iran/business/2487914.html


Sinosure said to blacklist Nigeria

(Get-Top-News, Guangzhou, 19 February 2016) According to Nigeria's Business Daily (February 16) due to the deterioration of Nigerian foreign exchange environment, China Export & Credit Insurance Corporation (also known as Sinosure) will blacklist Nigeria. Nigerian Central Bank (CBN) extreme foreign exchange controls has resulted in market the dollar shortage, international investors and companies have complained about this and more. According to an unnamed informed source, CITIC has notified its customers will not accept deals with Nigeria.

http://m.get-top-news.com/news-11777216.html


What's New January 2016

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • Ten reasons why ECA funded large hydro projects should not be OECD climate initiatives
  • ECAs and local procurement: A source of benefits or corruption?
  • Petrobras signs UKEF-backed deal
  • ECAs: To Be or Not To Be
  • US EXIM Bank Releases its FY 2015 Annual Report
  • Boeing Forecasts Strong Aircraft Demand, Financing Options for 2016
  • Iran’s Sanctions Lift, and Western ECAs Talk Aircraft Finance
  • Bank of China extends US$1bn credit line to Italy's Enel with Sinosure backing
  • India’s economic ‘Modification’ still not delivering on ECA finance
  • Brazilian mine spill shows how Canadian export credit risks getting tangled up in abuses.

Ten reasons why ECA funded large hydro projects should not be OECD climate initiatives

(International Rivers, Berkeley, 3 December 2015) At the Paris COP, 500 NGOs from 85 countries published a manifesto on 10 Reasons Why Climate Initiatives Should Not Include Large Hydropower Projects. The manifesto explicitly refers to the inclusion of large hydro projects in the special terms of the OECD ECAs for renewable energy technologies.

http://www.internationalrivers.org/node/9204


ECAs and local procurement: A source of benefits or corruption?

(TFX News, London, 11 January 2016) Localisation requirements in emerging-markets projects are meant to be a way of giving back; an attempt at ensuring a lasting beneficial legacy for the local population of the respective country. But is this ostensibly benign endeavour offering a perfect guise for corruption and bribery? From a financing perspective, the question is: what controls and/or processes could be put in place by the agencies [DFIs], the ECAs and the OECD to encourage more localisation and, at the same time, ensure the best local counterparties are engaged to perform those local works [rather than companies connected to local politicians or offer kickbacks or pay bribes]?

http://www.txfnews.com/News/Article/5403/The-dirty-underbelly-of-localisation#


Petrobras signs UKEF-backed deal

(Global Trade Review, London, 21 January 2016) Petrobras has received a US$500mn buyer’s credit facility from JP Morgan for the purchase of equipment manufactured by a UK subsidiary of GE Oil & Gas. Subsea and surface oil gas pipelines will be exported by Newcastle-based Wellstream International, and as such the deal is 100% covered by UK Export Finance (UKEF)... The deal comes in the midst of turbulent times for Petrobras, which is battling a major corruption case in Brazil, and whose credit-worthiness has been downgraded two levels to BB by Standards & Poor’s. UKEF tells GTR that the anti-bribery due diligence it carried out ahead of the deal indicated that “Petrobras has taken significant steps to reform its senior managerial and compliance structures, and that individuals found to have been involved in bribery have been replaced”, making it possible to provide support to the oil giant. JP Morgan would not comment on how the corruption scandal affected the deal.

http://www.gtreview.com/news/americas/petrobras-signs-ukef-backed-deal/


ECAs: To Be or Not To Be

(TXF News, 21 January 2016) In the century of their existence, export credit agencies (ECAs) have rarely been subjected to the level of public scrutiny they find themselves under today... Their advocates claim export credits allow impoverished importers to purchase goods that might otherwise be unaffordable, thereby promoting private sector development in poorer countries while forming an important part of the exporting nation’s trade policy. ECAs’ opponents have accused them of soaking up aid money for developing countries for the primary benefit of rich nations’ industry, supporting investments in projects with detrimental human and environmental impacts, and serving as a thinly-veiled guise for export subsidies and corporate welfare... At the end of June last year, [US] Exim adversaries saw their lobbying efforts come to fruition: the bank shut its doors to any new business and went into maintenance mode. But after five lengthy months of bi-partisan counter-lobbying, the bank experienced a Lazarus-like resurrection at the beginning of December – having its charter reauthorised until the end of 2019. Unfortunately for US Ex-Im though, that was not all she wrote. Although reauthorised, the bank is prohibited from approving transactions of over $10 million until a quorum is achieved at board level – there are currently three vacant spaces on the five-strong board. And Senate Banking Committee chairman Richard Shelby, a staunch Exim opponent, has made it clear he’s “in no hurry” to hold a vote, potentially delaying the process for months.

http://www.txfnews.com/News/Article/5415/ECAs-to-be-or-not-to-be


US EXIM Bank Releases its FY 2015 Annual Report

(Export Import Bank, Washington, 14 January 2016) The Export-Import Bank of the United States (EXIM Bank) released its Fiscal Year 2015 Annual Report highlighting its support of more than $17 billion in U.S. exports and an estimated 109,000 U.S. jobs.  The Bank also announced it has transferred $431.6 million in deficit-reducing receipts to the U.S. Treasury's General Fund for fiscal year 2015. [The press release made no mention of the battle that raged through 2015 between corporations receiving EXIM support and conservative politicians who closed EXIM down for a period in opposition to what they called corporate welfare.]

http://www.exim.gov/news/exim-bank-releases-its-fy-2015-annual-report


Boeing Forecasts Strong Aircraft Demand, Financing Options for 2016

(24/7 Wall Street, NewYork, 22 January 2016) Boeing Co. on Friday morning released its 2016 aircraft finance market outlook. The headline number is $127 billion, the forecast amount for new commercial deliveries in 2016, up from $124 billion in 2015. The company’s Boeing Capital Corporation also forecasts deliveries totaling $130 billion in 2017, $142 billion in 2018 and $161 billion in 2019. How all these airplanes will be paid for is the subject of Friday’s release. Boeing expects bank debt and capital markets to fund about 63% of all 2016 deliveries, with cash accounting for another 24% of funding and export credit to cover another 11%. Aircraft leasing companies are expected to use bank debt and capital market financing to acquire about 40% of all deliveries again next year.

http://247wallst.com/aerospace-defense/2016/01/22/boeing-forecasts-strong-aircra...


Iran’s Sanctions Lift, and Western ECAs Talk Aircraft Finance

(New York Times, New York, 26 January 2016) Aircraft offer a stark example of Iran’s need for foreign goods. The sanctions left Iran with one of the world’s oldest and most accident-prone fleets. Iran Air operates exclusively Western-built jets, consisting of around 40 planes with an average age of 25 years, including several Boeing 747s as well as models no longer in production, like the Airbus A300 and the Fokker 100. The orders, which are likely to be partly financed with loans from European export-credit agencies, could be announced as early as this week in Paris during a visit by President Rouhani, Mr. Akhoondi said.

http://www.nytimes.com/2016/01/26/business/international/airbus-iran-aircraft-ta...


Bank of China extends US$1bn credit line to Italy's Enel with Sinosure backing

(Global Trade Review, London, 25 January 2016) Italian utility group Enel has secured a US$1bn line of credit from the Bank of China, backed by Sinosure, the Chinese state export credit insurer. The five-year facility is aimed at financing projects involving Chinese companies around the world and has an option to be extended upon completion... In the last few years, [Enel] has inked numerous agreements in an effort to enlarge its Chinese footprint. In 2014, it signed agreements with the Bank of China, China National Nuclear and the State Grid Corporation of China... The latest transaction is sure to result in Enel’s participation in China’s booming green and renewable energy and cleantech sectors... Meanwhile, in 2015, Sinosure signed a reinsurance agreement with Sace, the Italian export credit agency, aimed at facilitating projects involving companies from both countries.

http://www.gtreview.com/news/asia/bank-of-china-extends-billion-dollar-credit-li...


India’s economic ‘Modification’ still not delivering on ECA finance

(TFX News, London, 25 January 2016) India’s election in 2014 of business-friendly Prime Minister Narendra Modi, along with his promises of a capex boom, triggered a rush of optimism that ECA finance would finally take off. The rout in global commodity prices that started less than two months later sent those hopes into tailspin, although India’s potential as a vibrant ECA market could yet be fulfilled once oil prices recover. While smaller ECA transactions take place “here and there” in India, the country is not, considering its size, a big player in ECA finance, says Manuel Probst, director of export finance at German industrial services provider Ferrostaal.

http://www.txfnews.com/News/Article/5418/Indias-economic-Modification-still-not-...


Brazilian mine spill shows how Canadian export credit risks getting tangled up in abuses.

(Above Ground, Ottawa, 11 January 2016) Thomas L. Friedman's "The World Is Flat: A Brief History of the Twenty-First Century" suggests that a level playing field has emerged in the world of global commerce, affording competitors equal opportunity. But this analysis ignores government intrusion in the form of massive loans to favoured players and projects. Case in point: last November’s immense mine spill in the state of Minas Gerais, Brazil's worst environmental disaster, which Brazilian President Dilma Rousseff compared to the Deepwater Horizon catastrophe in the Gulf of Mexico. Fifty million tons of toxic waste flooded the Doce River, leaving a wake of destruction for hundreds of kilometres. At least 19 are dead and thousands have lost their homes and livelihoods. Indigenous Krenak people demanding safe drinking water have blocked the local railway. The Brazilian government is suing the mine’s joint venture owners, which includes Brazilian multinational Vale [formerly INCO], for over $5 billion USD. There is a direct Canadian connection to this venture. Export Development Canada, a Crown corporation, provided Vale with hundreds of millions of dollars in financing for its global operations, most recently in 2014.

http://www.embassynews.ca/opinion/2016/01/13/dont-bankroll-the-next-foreign-mine...


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