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 July 2017

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

See all "What's New!" updates since 2005 here.

  • G20 public finance for fossil fuels 'is four times more than renewables'
  • Russia's $70 Billion ‘Secret’ Export Credit Spending Lets Money Do the Talking
  • Is EDC complicit in support of foreseeable human rights violations?
  • White House under pressure to drop Export-Import Bank nominee
  • Global export credit falls amid US Exim wipeout
  • Turkey’s growing repression leads to review of German ECA guarantees
  • Eximbank of Korea to finance gas field development project in Mozambique
  • UK government signs deal with major banks and contractors to raise exports post-Brexit
  • SACE’s support for exports grows, reaches €7.8 billion in H1
  • Norway launches new ECA backing in push for diversity

G20 public finance for fossil fuels 'is four times more than renewables'

(Guardian, London, 5 July 2017) The G20 nations provide four times more public financing to fossil fuels than to renewable energy, a report has revealed ahead of their summit in Hamburg, where Angela Merkel has said climate change will be at the heart of the agenda. The authors of the report accuse the G20 of “talking out of both sides of their mouths” and the summit faces the challenge of a sceptical US administration after Donald Trump pulled out of the global Paris agreement. The new report by a coalition of NGOs found that the G20 countries provided an average of $71.8bn of public finance for fossil-fuel projects per year between 2013-2015, compared with just $18.7bn for renewable energy. Japan provided the most at $16.5bn per year, which was six times more than it allotted for renewables. China, which is curbing its coal use and increasingly being seen as a climate leader, provided $13.5bn for fossil fuels but just $85m for green energy. Germany, also seen a climate leader, provided $3.5bn of public finance for fossil fuels, compared with $2.4bn for renewables. Britain provided $972m for fossil fuels, compared with $172m for renewable energy. The public finance comes in the form of soft loans and export credit guarantees from governments, and, along with huge fossil fuel subsidies, makes coal, oil and gas plants cheaper, and locks in carbon emissions for decades to come...  The Natural Resources Defence Council has noted that most of these emissions don’t count towards the G20's carbon footprint as they are funding coal projects abroad.

https://www.theguardian.com/world/2017/jul/05/g20-public-finance-for-fossil-fuel...


Russia's $70 Billion ‘Secret’ Export Credit Spending Lets Money Do the Talking

(Bloomberg, Moscow, 25 July 2017) As state secrets go, Russia’s program of export finance and loans to other nations might be one of the worst kept. While discussions about aiding cash-strapped allies frequently spill into the open, the Finance Ministry’s debt chief Konstantin Vyshkovsky says information about individual loans isn’t public and a budget addendum on state financial and export credit is classified as “secret.” But, speaking in an interview at his office a short walk from the Kremlin, Vyshkovsky said Russia has committed about $70 billion in total to such loans [over 20+ years?], a figure that hasn’t been disclosed before... The vast majority of money made available by the government covers export finance, with the borrower getting Russian products and services and a domestic company receiving the funds. Nuclear projects account for 90 percent of the $70 billion total in state loans, followed by the defense industry and civil aviation, according to Vyshkovsky.

https://www.bloomberg.com/news/articles/2017-07-25/russia-s-70-billion-secret-sp...


Is EDC complicit in support of foreseeable human rights violations?

(Globe and Mail, Toronto, 21 September 2016) In 2015 Netsweeper Inc. of Waterloo Ontario, with support from Export Development Canada, sold Internet filtering technology to the government of Bahrain — a country criticized internationally for widespread suppression of human rights defenders through censorship, surveillance, arbitrary detention and torture. In 2016 Bahrain started using Netsweeper's Web-filtering software to keep a lid on dissent, a University of Toronto report said. It added that the Sunni-dominated monarchy is going so far as to use the software to deny Bahrain’s majority Shia citizens access to basic information about their religion and religious leaders. In 2015, the Netsweeper's software was also reported as being used to cut Yemen’s citizens off from learning about the civil war surrounding them. Following a February 2017 submission from ECA Watch member Above Ground which called for the adoption of regulatory and policy measures to ensure Canada is not complicit in foreseeable human rights violations associated with the use of digital censorship and surveillance technologies supplied by Canadian companies, EDC was called to to testify before Canada's Senate human rights committee. In their testemony, EDC stated that, at this point, the guarantee that is the subject of the complaint is no longer in place, nor is the company a customer of EDC.

https://www.theglobeandmail.com/news/national/bahrain-using-canadian-software-to...


White House under pressure to drop Export-Import Bank nominee

(Politico, Washington, 17 July 2017) President Donald Trump is standing behind former Rep. Scott Garrett, his choice to head the Export-Import Bank, amid escalating pressure from business groups to pull the plug on the nomination. His record has driven businesses that rely on the agency to try to stop his nomination, even though they also want the Senate to confirm nominees who would fill out its board. During his career in Congress, Garrett was one of the most outspoken critics of the bank. In 2015, he said the agency “embodies the corruption of the free enterprise system.”  The bank has been unable to approve deals worth more than $10 million because of a lack of a quorum. Three Democratic Senators have argued that “If confirmed as chairman of the board, Mr. Garrett would have wide latitude to control the board’s agenda and substitute his personal views for the statutory mission of the bank, destroying it from within after failing in his efforts to persuade his colleagues to legislate its demise”. Trumps new communications officer Anthony Scaramucci was a senior vice-president and chief strategy officer at the Export-Import Bank.

http://www.politico.com/story/2017/07/17/scott-garrett-trump-export-import-bank-...


Global export credit falls amid US Exim wipeout

(Global Trade Review, London, 12 July 2017) Medium and long-term export credit activity nosedived among OECD countries in 2016, led by a massive decline in activity at US Exim. With notable exceptions (including France, Italy, Sweden and the UK) export credit volumes declined in many major markets. Most obviously, there was a 97% fall in support from US Exim, Japanese agency support dropped by 63%, backing from Euler Hermes in Germany was down 39%, while the numerous Korean agencies saw their export credit support fall by 23%. The Competitiveness Report by US Exim outlines the “sluggish global export growth of around 2% last year”, along with “massive market liquidity” around the world, which led to historic levels of activity from specialist financiers, such as private export credit insurers. However, the fact that US Exim spent much of the year in liquidation, and has yet to be revived under the US President Donald Trump (although he has voiced unexpected support for the export credit agency [ECA]) are the primary reasons for its lack of action. These issues are not alluded to in the report, which does not mention the US president once in 68 pages.

https://www.gtreview.com/news/americas/global-export-credit-falls-amid-us-exim-w...


Turkey’s growing repression leads to review of German ECA guarantees

(The Telegraph, Berlin, 21 July 2017) Germany announced a series of hardline measures against Turkey on Thursday amid rapidly deteriorating relations between the two Nato partners. Sigmar Gabriel, the German foreign minister, accused the Turkish government of the “arbitrary” arrest of German citizens on its soil and demanded their immediate release. In a series of measures that could threaten the fragile Turkish economy, he issued tough new travel advice for Germans on visiting the country, and ordered a review of export credit guarantees for German companies investing in Turkey. He also said Germany would seek a review of €630m (£560m) of aid Turkey currently receives each year from the EU, and of Turkey’s partial membership of the customs union.

http://www.telegraph.co.uk/news/2017/07/21/angela-merkel-backs-hardline-policy-t...


Eximbank of Korea to finance gas field development project in Mozambique

(Club of Mozambique, Maputo, 30 June 2017) The Export-Import Bank of Korea announced on June 27 that it has signed a project financing contract on June 26 for offshore gas field development in Mozambique. The gas field development project is a joint project of the Korea Gas Corporation, Exxon Mobil, Italian energy company Eni and Empresa Nacional de Hidrocarbonetos (ENH) of Mozambique. The signing ceremony was held in Rome, Italy. In the project, the eight institutions including the Export-Import Bank of Korea, the Korea Trade Insurance Corporation and the Export-Import Bank of China are scheduled to provide a total of US$5 billion as creditors. According to the contract, the Export-Import Bank of Korea is responsible for one-fifth of the amount. NGOs have noted that the proposal to construct the onshore liquefied natural gas plant could result in the relocation of thousands, the destruction of fragile coral reefs, and greenhouse gas emissions equivalent to an estimated 5.2m metric tonnes of carbon dioxide each year.

http://clubofmozambique.com/news/eximbank-of-korea-to-finance-gas-field-developm...


UK government signs deal with major banks and contractors to raise exports post-Brexit

(Bloomberg, London, 13 July 2017) Five of the U.K.’s leading retail banks have pledged more financial support for small British exporters, with government backing, as Prime Minister Theresa May’s administration prepares the country for life after Brexit. The U.K. said its export credit agency reached an agreement with Barclays, HSBC, Lloyds Banking Group, RBS/NatWest and Santander UK Plc to provide export-related trade finance, for example working capital loans and bonds required by overseas buyers, backed by government guarantees. The extra help for British companies to export is part of the U.K. government’s effort to prepare the economy for leaving the EU. Currently, the UK is lagging behind a number of European countries where exports are concerned – such as Germany – and there are worries that trade from UK businesses could weaken following last year’s EU referendum result. UKEF’s credit risk appetite was doubled to £5 billion by the government at the last Autumn Statement and the Department for International Trade (DIT) has set up a ‘Team UK’ construction consortia to bid for overseas contracts. Infrastructure Exports UK will bring together 17 leading UK construction firms and consultants which, individually, have worked on large-scale global projects. IE: UK board members will meet three times a year to choose the projects they wish to bid for as a single business, with government support.

https://www.bloomberg.com/news/articles/2017-07-11/u-k-retail-banks-to-offer-mor...


SACE’s support for exports grows, reaches €7.8 billion in H1

(Italy/Europe 24, Rome, 26 July 2017) Italian export credit agency SACE is continuing to boost Italian companies abroad. Along with SIMEST – the other export and internationalization arm of state holding CDP – the SACE agency led by Alessandro Decio closed the first six months of this year with €7.8 billion of financial resources mobilized, up 19% compared to the same period of 2016.

http://www.italy24.ilsole24ore.com/art/business-and-economy/2017-07-25/italian-e...


Norway launches new ECA backing in push for diversity

(Global Trade Review, London, 5 July 2017) Norwegian export credit agency Giek has launched a new lender guarantee for export-related investments in Norway. The new product will provide guarantees to banks that finance corporate investment in Norway, where the investment directly or indirectly leads to exports. Aimed at boosting diversity in the oil and gas-rich nation, the guarantees will not be applicable to oil and gas processing plants, tourism, real estate development and large infrastructure projects.

https://www.gtreview.com/news/europe/norway-launches-new-eca-backing-in-push-for...


What's New June 2017

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

See all "What's New!" updates since 2005 here.

  • Report: Why and how the Dutch government must exclude credit support for fossil fuel
  • EDC’s response to alleged abuse in Colombian oilfields highlights deficits in due diligence
  • New database reveals world’s biggest coal plant developers
  • Kuwait Seals US$6.25bn Loan in Largest ECA-Backed Corporate Transaction Ever
  • Yamal LNG raises more financing with coverage by Swedish and German ECAs
  • Italy's Eni signs LNG deal in Mozambique with ECA support
  • EXIM Banks of India and Korea sign MOU for export credit of USD 9 billion
  • Boeing strikes deal with Italian export credit agency in lieu of Ex-Im Bank
  • Trump sends Export-Import Bank nominees to Senate
  • Iran ECA Finance Talks Making Headway

Report: Why and how the Dutch government must exclude credit support for fossil fuel

(Both ENDS, Amsterdam, 14 June 2017) Export Credit Agencies (ECAs) are key institutions governments employ to support private companies doing business overseas. ECAs offer a wide range of guarantees and insurances to private companies. This makes it easier for these companies to gain access to finance, mostly from banks. Based on publicly available data, this report concludes that the Dutch Export credit agency Atradius DSB, which provides export insurances on behalf of the Dutch state, insured fossil fuel-related projects with a total value of € 7.3 billion in the period 2012-2015. This is two-thirds of its total insured value for that same period.

http://www.bothends.org/en/Publications/document/184/Paris-Proof-Export-Support-...


EDC’s response to alleged abuse in Colombian oilfields highlights deficits in due diligence

(Above Ground, Ottawa, 14 June 2017) Our latest correspondence with Export Development Canada (EDC) about the impacts in Colombia of two oil companies it financed highlights our longstanding concerns about the adequacy and transparency of the agency’s human rights due diligence practices. Last fall, following the release of a report documenting serious human rights abuses associated with the operations of EDC clients Pacific Exploration & Production and Ecopetrol in Colombia’s Rubiales and Quifa oilfields, we joined the report authors[1] in writing to EDC to express our concern. We asked the agency whether it was aware of the substantial risks associated with oil development in the region when it decided to finance the two companies, and how it would respond to the reported violations of indigenous, labour and environmental rights connected to its clients’ activities.[2] Export Development Canada’s letter of reply neglected to provide any substantive answer to these questions. As we note in our response to EDC, it remains unclear how the agency will address reported abuses associated with its clients’ activities — including the violation by Pacific E&P of Colombian law governing consultation with indigenous peoples, as determined by a 2015 court ruling. It also remains unclear how EDC will ensure that its clients remediate the harms caused, provide redress, and prevent their operations from heightening the serious risks to local community leaders who’ve spoken out critically about the companies’ activities and now face death threats.




New database reveals world’s biggest coal plant developers

(Banktrack, Berlin 29 June 2017) The environmental NGO urgewald and its partners have revealed which companies are at the forefront of plans to expand the world’s coal-fired power capacity by a staggering 42.8%. urgewald’s previous in-depth research played a key role in initiating the coal divestment actions of the Norwegian Government Pension Fund and the insurance company Allianz.

http://mailchi.mp/banktrack/press-release-new-database-reveals-worlds-biggest-co...


Kuwait Seals US$6.25bn Loan in Largest ECA-Backed Corporate Transaction Ever

(Bonds & Loans, London, 13 June 2017) Kuwait National Petroleum Company’s (KNPC) US$6.245bn ECA-backed loan includes plans to modernise the Mina Al Ahmadi oil refinery located in Al Ahmadi Governorate, south of the country, to make it meet stringent environmental requirements.

http://www.bondsloans.com/news/article/1471/case-study-knpc-seals-us625bn-loan-i...


Yamal LNG raises more financing with coverage by Swedish and German ECAs

(Your Oil & Gas News, Edinburgh, 1 June 2017) Yamal LNG announced the signing of agreements with several European banks, inter alia Raiffeisen Bank International AG and Intesa Sanpaolo for up to 425 million with insurance coverage provided by the Swedish export credit agency EKN and the German export credit agency Euler Hermes. Yamal LNG has previously received financing from the National Welfare Fund of Russia, signed agreements on credit lines with Sberbank and Gazprombank, as well as with the China Development Bank and the Export-Import Bank of China, the Japan Bank for International Cooperation (JBIC) and the bank Intesa Sanpaolo with insurance coverage by the Italian export credit agency SACE and the French export credit agency COFACE. In June 2015 WWF Russia noted that the Environmental and Social Impact Assessment of the project, while complying with the best Russian practices were not complete regarding a number of issues and that certain ESIA strategic conclusions required additional discussions and consultations.

http://www.youroilandgasnews.com/yamal+lng+raised+financing+with+insurance+cover...


Italy's Eni signs LNG deal in Mozambique with ECA support

(Reuters, Maputo, 1 June 2017) Italian energy company Eni signed an $8 billion deal on Thursday to develop a gas field off the coast of Mozambique, the first of a series of projects that could transform the poor African nation into a major energy supplier to Asia. Developing the Coral South field requires building six subsea wells connected to a floating facility capable of producing about 3.4 million tonnes of liquefied natural gas (LNG) per year. Eni said project finance would fund 60 percent of the cost of building the floating LNG facility, while the financing agreement has been subscribed by 15 major international banks and guaranteed by five export credit agencies [Export-Import Bank of China, Coface of France, Export-Import Bank of Korea (Kexim), Korea Trade Insurance Corporation, and SACE of Italy] The floating LNG platform will be built in South Korea by a consortium led by Samsung Heavy and including France’s Technip and Japan’s JGC.

http://www.reuters.com/article/us-eni-mozambique-idUSKBN18S6AW


EXIM Banks of India and Korea sign MOU for export credit of USD 9 billion

(OpenGovAsia, Singapore, 16 June 2017) The Export-Import Bank of India (EXIM Bank) and the Export-Import Bank of Korea (KEXIM) have signed a Memorandum of Agreement (MoU) for export credit of USD 9 billion to support infrastructural development in India and for the supply of goods and services as part of projects in third countries.

http://www.opengovasia.com/articles/7712-exim-banks-of-india-and-korea-sign-mou-...


Boeing strikes deal with Italian export credit agency in lieu of Ex-Im Bank

(Seeking Alpha, Ra'Anana Settlement Israel, 31 May 2017) Boeing has sealed a deal for Italy's export credit agency to provide an initial $1.25B/year in guarantees for jetliner sales, partly to fill the void left by the U.S. Export-Import Bank, which has been restricted since July 2015 when some lawmakers blocked the appointment of a new board. Dow Jones reports that the new agreement with Italy's Sace is the first between Boeing and an overseas export credit agency and provides a template for the company to secure similar deals with other countries that supply large parts of its jetliners.

https://seekingalpha.com/news/3270788-boeing-strikes-deal-italian-export-credit-...


Trump sends Export-Import Bank nominees to Senate

(Defense News, Washington, 20 June 2017) U.S. President Donald Trump has formally nominated former members of Congress, Scott Garrett and Spencer Bachus, to two vacant positions on the U.S. Export-Import bank as expected, a win for the defense and aerospace sector.  Trump announced the move in April — a reversal after calling the federal government’s export credit agency “excess baggage” in 2015. Though the Heritage Foundation and some free-market conservatives have criticized the Ex-Im Bank as subsidizing foreign competitors of U.S. firms, the Aerospace Industries Association, touted it as vital to small- and medium-size companies. Among the largest export beneficiaries of the bank’s financial assistance have been Boeing and General Electric, which have overseas customers that use the agencies' government-backed loans to buy their products.

http://www.defensenews.com/articles/trump-sends-export-import-bank-nominees-to-s...


Iran ECA Finance Talks Making Headway

(Financial Tribune, Tehran, 19 June 2017) Iran has held negotiations with Italy’s Medibank and SACE export guarantee for €2 billion ($2.24 billion), Exim Bank of China for $30 billion, China Development Bank for $15 billion, Korea Export–Import Bank for $8 billion and Korea Trade Insurance Corporation for $5 billion to receive foreign financing. Other parties involved in finance negotiations with Iran include Japanese Nippon Export and Investment Insurance and the Japanese Ministry of Finance for $10 billion, the Japan International Cooperation Agency for €1.2 billion ($1.34 billion), Russian Ministry of Economic Development for €5 billion ($5.6 billion) and the Norwegian Guarantee Institute for Export Credits for €1 billion ($1.1 billion). Euler Hermes of Germany is also interested in covering investments in Iran. However, a lack of full-fledged banking ties between Iran and Europe is preventing the complete benefits of the German sovereign guarantee to be felt by Iran.

https://financialtribune.com/articles/economy-business-and-markets/66707/iran-fi...


Madagascar is Afreximbank’s Newest Participating State

(Afreximbank Cairo, 26 June 2017) Madagascar has become the latest country to join the African Export-Import Bank (Afreximbank) as a participating state. Membership of the Bank gives Madagascar automatic access to the full range of products and facilities offered by Afreximbank, including trade finance facilities, project finance services, trade information and advisory services, support in the development of a local content policy and assistance in developing and implementing industrial parks and special economic zones.

https://afreximbank.com/madagascar-is-afreximbanks-newest-participating-state/


What's New May 2017

"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?

Indonesian Community Reps File Cirebon Coal Plant Objections with JIBC

(Friends of the Earth Japan, Tokyo, 24 May 2017) On May 24, 2017, two Indonesian community representatives affected by the JIBC supported Cirebon Coal-fired Power Plant Project in West Java arrived in Japan and handed their objections to the Japan Bank for International Cooperation (JBIC) with respect to the expansion of the Unit 2 power plant (1,000 MW). At the same time, Indonesian and Japanese NGOs filed their complaints with the Japanese National Contact Point (NCP) under the OECD Guidelines for Multinational Enterprises (MNEs). Japanese public and private sectors, including Marubeni and JERA as investors, have pushed through the project despite already serious damages to the livelihoods of the local community and the April 19 revocation of its environmental permit by the District Court in Bandung.

http://www.foejapan.org/en/aid/170524.html


World Coal: IEA CCC Report - Global financing for coal power goes East

(World Coal, Surrey, 19 May 2017) Development finance is essential to help the advancement and empowerment of low and middle income economies. But, past announcements by multilateral development banks restricting finance for greenfield coal plants cast doubts on future funding. This approach to coal investments spread to other development agencies and also became a foundation for the rules governing OECD export credits (pdf). A new report from the IEA Clean Coal Centre by Paul Baruya, Trends in international lending for coal-fired power plants, examines the implications of these announcements and explores the roles and policies of different financial institutions. In 2014 alone, US$152 billion of funding was received by the coal power and mining sectors from such institutions. Of this total, just US$9 billion was provided by multilateral development banks and export credit agencies. Thus these publicly financed institutions make a minor contribution to direct funding of coal projects, although they maintain a role in attracting commercial funding to higher risk projects.

https://www.worldcoal.com/power/19052017/iea-ccc-global-financing-for-coal-power...


Turkey in 'final phase' of secretive Saudi arms export deal

(Defense News, Ankara, 3 May 2017) Turkey’s defense and procurement officials are expecting to finalize a large defense export contract with Saudi Arabia, but its contents will be kept top secret. Turkish Defence Minister Fikri Isik has said the defense export contract with Saudi Arabia will be the largest-ever single export deal for the Turkish industry...  Turkey, he said, would launch a new export lending mechanism outside the scope of Eximbank loans in order to finance Turkish exports. Eximbank is a state-owned export credit bank in Turkey. The Minister said his government was working on a broad plan to boost Turkish defense and aerospace exports. He admitted that financing was often a major problem for potential markets.

http://www.defensenews.com/articles/turkey-in-final-phase-of-secretive-saudi-exp...


N.J. critic of Export-Import Bank appointed to overhaul federal credit agency

(National Public Radio Newsworks, Delaware, 16 May 2017) Republicans who want to disband the Export-Import Bank of the United States were heartened during the presidential campaign when candidate Donald Trump indicated he would kill it if he were elected president. Now, President Trump said he supports the bank and the micro-financing it gives U.S. companies. Republican Ryan Costello and other lawmakers from the Delaware Valley are in that corner as well, but are now perplexed by the President's tapping of former U.S. Rep. Scott Garrett to serve on the  bank's board. Garrett, a founding member of the very conservative House Freedom Caucus, has long been a critic of the bank — even voting against its reauthorization. Democrats fear Garrett and Trump are trying to undermine the bank from within. Democrat Brendan Boyle said it's difficult to discern whether Trump is being devious or if he just doled out a favor to a loyalist who recently lost a bid for re-election. "It could just be that there's no forethought in this whatsoever,” Boyle said.

http://www.newsworks.org/index.php/local//item/103984-nj-critic-of-export-import...


Airbus tightens fraud controls

(Air Transport World, Arlington, 22 May 2017) Airbus has established a new independent compliance review panel (ICRP) to ensure “irreproachable” behavior, following allegations of fraud, bribery and corruption in its civil aviation business. The move follows an investigation by the UK Serious Fraud Office (SFO) and France’s Parquet National Financier (PNF), after Airbus self-disclosed misstatements and omissions found a year ago. Revelations started emerging in April 2016, when the UK Export Finance (UKEF), Britain’s export credit agency (ECA), placed a temporary hold on all guarantees and credit export support of Airbus products. Coface, the French ECA, and Euler Hermes, the German ECA, followed within days. The probe is focused on alleged misuse of third-party agents and European export credit by Airbus.

http://atwonline.com/manufacturers/airbus-tightens-fraud-controls


Iran in talks with UK export credit agency over jetliner export funding

(Reuters, Paris, 4 May 2017) Iran is in talks with Britain's export credit agency to facilitate the financing of aircraft sales to state airline IranAir as part of its pact with world powers to lift sanctions over its nuclear program, a senior Iranian official said. IranAir's plan to buy more than 180 jets from Airbus and Boeing is the most visible economic deal on the table after major powers last year lifted most sanctions on Iran in return for restrictions on its nuclear activities. But financing for the purchases has been hard to secure because most Western banks are holding back, concerned about the future of the 2015 agreement after U.S. President Donald Trump called it a bad deal and ordered a review. So far, IranAir has taken delivery of just three Airbus jets, for which it paid cash, industry sources say. Meanwhile, other news reports say that Theresa May’s snap decision to hold general elections in June discourages Britain’s export credit arm from taking defining decisions affecting foreign policy during such a critical time. The government is also likely to postpone dealing with the issue until after the elections. Meanwhile, the Iranian government was under immense pressure to show results of the Nuclear Deal before the country’s elections in May. The Slovakian and Finnish ECAs have also signed deals with Iran.

http://www.reuters.com/article/us-iran-britain-financing-exclusive-idUSKBN1800VW


China's Export Credit Agency Covering Iran Investment

(Financial Tribune, Tehran, 9 May 2017) China Export & Credit Insurance Corporation (Sinosure) will provide export insurance for Chinese construction and production investments in Iran. According to a recently signed Meorandum of Understanding, the Chinese export credit agency will insure state-owned and private Chinese companies that intend to invest in Iranian projects, enabling them to use new lines of credit, particularly for the export of high-value added goods from China. Prior to this, the entity had provided credit lines and export insurance for mining and refinery projects in Iran.

https://financialtribune.com/articles/economy-business-and-markets/64046/chinas-...


Like spring weather, Delta’s positions on EXIM change quickly and dramatically

(eTurbo News, Hawaii, 11 May 2017) A recent high-profile example of Delta’s advocacy agility was its position on export credit financing and reauthorization of the Export-Import Bank (EXIM). Delta opposed it before it supported it. In the beginning, Delta was a leading voice opposing reauthorization of the EXIM. It was a visible and vocal member of the chorus decrying export credit financing as inherently bad public policy and crony capitalism. Delta claimed it was chased out of the US-India market by EXIM lending to Air India to purchase Boeing 787 Dreamliners. Simultaneously, it spent millions of dollars repeatedly suing EXIM seeking to use the courts to block guarantees for Air India’s 787s. Then Delta pivoted. It claimed it never opposed export credit financing and, after waging a scorched earth lobbying campaign against EXIM, it in fact was prepared to support its reauthorization provided the legislation included an anticompetitive carve-out prohibiting widebody financing for state-owned carriers.

https://www.eturbonews.com/154422/like-spring-weather-deltas-positions-change-qu...


State Bank of India could fund Gautam Adani’s coal mine in Australia

(National Herald, New Delhi, 9 May 2017) Australia's Market Forces environmental finance group has warned that Indian businessman Gautam Adani could turn to the Indian government to get his $21 billion coal mine funded, as Australian and international investors increasingly pull out of the project due to environmental concerns. "The (funding) model now looks like a combination of North Australia Infrastructure Funding (NAIF) funding, State Bank of India (SBI) and foreign export credit providing the bulk of the debt. The remainder would likely rely heavily on Indian commercial banks that Adani has a close relationship with, and some other foreign commercial banks that have not yet ruled out finance," Julien Vincent, the Executive Director at Market Forces, told National Herald, replying to an emailed questionnaire. Taxpayers in Australia and India are most likely to fill the funding gap that Adani is experiencing, Vincent said.

https://www.nationalheraldindia.com/news/2017/05/09/sbi-could-fund-gautam-adanis...


Kenya’s stake in pan African ECA diluted

(The Star, Nairobi, 8 May 017) Kenya's shareholding in African Trade Insurance Agency has been marginally diluted following entry of four new investors, the largely political risk and investment guarantee firm has said. Chief executive George Otieno said Kenya's stake has dropped to about 12 per cent from 15 per cent. This was after Ethiopia and Zimbabwe joined the pan-African investment and commercial risk insurance provider last year, while Ivory Coast came on board last month. UK’s national export credit agency, UK Export Finance, has also acquired undisclosed stake in ATI, joining African Development Bank and Italian Export Credit Agency as non-state shareholders. “Kenya, however, remains the single largest shareholder in ATI and by some measure the single biggest beneficiary of ATI cover since its inception,” ATI’s chief underwriting officer John Lentaigne said. “We have investments in Kenya equivalent to 15 per cent (about Sh1.08 trillion) of the current GDP (about Sh7.2 trillion) since its (ATI's) inception.” The company was formed by seven African countries, with Kenya as single largest shareholder, in 2001 but started operating fully in 2003. The agency was financially and technically supported by the World Bank Group during its formation.

http://www.the-star.co.ke/news/2017/05/08/kenyas-stake-in-pan-african-firm-dilut...


US Trade Finance for Cuba ‘Much Further Down the Road’ says Ex-Im Bank Officer

(Sputnik News, Washington, 15 May 2017) Trade finance to Cuba is not expected in the near future because of the quantity of work that needs to be completed, including the country's payments due to export credit agencies, US Export-Import Bank (Ex-Im) Business Development Officer Kate Bishop told Sputnik on Monday. "It looks like trade restrictions are easing, but trade finance, which is where we come in, I think that would be much further down the road before it would even be considered," Bishop said on the sidelines of the Fifth Annual Doing Business with the BRICS Conference on Monday.

https://sputniknews.com/business/201705151053637579-us-trade-cuba-exim/


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