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 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

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

  • Export-Import Bank, stymied by critics, gets a break
  • With Ex-Im hobbled, GE forges ahead with European & Canadian ECA financing
  • Airbus says it has agreed process to end European export credit freeze
  • Living without ECA backed funding
  • China takes the lion's share in electrifying Africa with ECA finance
  • Exxon said to be in advanced talks over Eni Mozambique gas, also under ECA review
  • British and Russian ECAs to finance Iranian power and water projects

Export-Import Bank, stymied by critics, gets a break

(McClatchyDC, Washington, 12 July 2016) Lawmakers in the House of Representatives, including Rep. Kay Granger, R-Texas, moved Tuesday to assist the embattled federally charted bank for U.S. exporters. The House Appropriations Committee approved an amendment to a funding bill that effectively will enable the bank to approve loans of more than $10 million again. The bank board, with only two members, has been unable to get a quorum of three members out of five positions – as required by its charter – in order to approve large loans. “A backlog of more than 30 transactions worth more than $20 billion is stalled until Ex-Im regains its quorum,” Rep. Charlie Dent, R-Pa., told the Appropriations Committee on Tuesday. His amendment to allow a quorum to consist of two members for three years was approved as part of the appropriations bill that funds the State Department and other related agencies. “It would allow them to function with two board members,” Dent told McClatchy. Granger, the chairwoman of the subcommittee that oversees the bill, supported the amendment and it passed by voice vote.

http://www.mcclatchydc.com/news/politics-government/congress/article89218582.htm...


With Ex-Im hobbled, GE forges ahead with European & Canadian ECA financing

(Export Import Bank, Washington, June 2016) In its June 2016 Report to the U.S. Congress on GLOBAL EXPORT CREDIT COMPETITION Ex-Im noted (on p.55) that in 2015, foreign ECAs acted aggressively to move business away from the United States to their countries. The most notable examples involved General Electric setting up agreements with foreign ECAs. The company signed a $6 billion memorandum of understanding with SACE (Italy) to support oil and gas exports. The company also signed a £7.7 billion (about $11.1 billion) memorandum of understanding with UKEF (UK) to support projects. Finally, GE announced plans to close a gas-engine production plant in Wisconsin and open a new facility in Canada to access EDC (Canada) support.  GE also announced on June 14 that it will use Coface financing to back its gas turbine projects in Saudi Arabia, Mexico, Brazil and other nations as the U.S. Export-Import Bank continues to languish without a sufficient quorum on its board of directors and told AFP on January 13, 2016 it plans to cut up to 6,500 jobs in Europe from the energy units it acquired from France's Alstom last year. "The restructuring plan will touch several European countries and impact potentially 6,500 jobs out of 35,000," a GE spokesman told AFP.

http://www.exim.gov/sites/default/files/reports/2015EXIMCompetitiveReportFINAL-v...


Airbus says it has agreed process to end European export credit freeze

(Reuters, Paris, 27 July 2016) Airbus Group has agreed with European governments a process for regaining access to export credits, suspended earlier this year over flawed disclosures on the use of third-party agents to help to sell passenger jets, the company said on Wednesday. In a footnote in its half-yearly financial statements, the aerospace group said it was working with UK, French and German export credit agencies (ECA) to resolve compliance issues raised by the irregularities, which sources have said dated back years. Britain in April froze applications for government export credits for Airbus passenger jets and called in its Serious Fraud Office (SFO) after Airbus Group said it had discovered inaccuracies in applications for export support. French and German agencies quickly followed suit. A person familiar with the matter told Reuters recently that much work remained to be done in establishing a transparent framework, following what some industry observers see as a temporary breakdown of trust between Airbus Group and the European export agencies.

http://www.reuters.com/article/airbus-group-results-exports-idUSL8N1AD6OS


Living without ECA backed funding

(EuroMoney Seminars, London, 4 July 2016) The aviation market is in an unprecedented situation with both the major aircraft manufacturers facing a shutdown in government export credit financing. Years of predictable and attractive financial returns have led to a staggering number of new entrants in the aviation finance market, allowing airlines and lessors to benefit from fierce competition among lenders and historically low interest rates. These developments are very good news for borrowers, which have been without European export credit agency (ECA) cover from Britain, France and Germany since April, following a UK government probe into overseas agents on export credit applications involving Airbus aircraft. The US Export-Import Bank (Ex-Im) has been unable to extend guarantees fully for more than a year.

http://www.euromoneyseminars.com/articles/3567317/analysis-living-without-eca-ba...


China takes the lion's share in electrifying Africa with ECA finance

(Global Construction Review, London, 8 July 2016) Chinese companies are playing huge role in bringing electricity to sub-Saharan Africa and can take credit for 30% of new capacity in the region, according to a study published this week by the International Energy Agency (IEA). While more than 635 million people still live without electricity there, Chinese companies channeling state funds into all different types of power stations will have brought light and power to around 36 million people by 2020. The sums are vast: the IEA finds that China invested around $13bn between 2010 and 2015 in power projects, as China’s contribution dwarfs that of any other non-African country. There is also a long-term strategy behind China’s powering of Africa. The industrialisation and economic development of the region is seen by Chinese stakeholders as important for eventually bolstering Chinese exports to the region, the IEA says. China’s approach to development assistance differs from OECD countries. For example, China is not covered by the Arrangements on Officially Supported Export Credits, which guides OECD countries in export credit financing. In the 2010-15 period, loans, credits and foreign direct investment from China into the sub-Saharan power sector amounted to around $13bn, around one-fifth (20%) of all investments in the sector. Most of this financing comes from the Export-Import Bank of China.

http://www.globalconstructionreview.com/sectors/china-takes-lions-sha7re-electr7...


Exxon said to be in advanced talks over Eni Mozambique gas, also under ECA review

(Bloomberg, Johannesburg, 28 July 2016) Exxon Mobil Corp. is in advanced negotiations with Eni SpA over acquiring a minority stake in natural-gas discoveries off Mozambique, according to two people with knowledge of the talks. Exxon Chief Executive Officer Rex Tillerson discussed the plan with Mozambique President Filipe Nyusi last week in Maputo, the African nation’s capital, according to one of the people, asking not to be identified because the matter isn’t public. The U.S. oil major’s participation would potentially accelerate development of one of the world’s largest liquefied natural gas projects. [ECA Watch sources understand that six ECAs are reviewing the project with regard to potential ECA support. Meanwhile, a recent ISS report notes that Mozambique, which was poised to take off as the world’s third-biggest natural gas producer, is instead now teetering on the brink of a major sovereign debt default, which is threatening to jeopardise its eagerly anticipated gas-fired boom.]

http://www.bloomberg.com/news/articles/2016-07-28/exxon-said-in-advanced-talks-w...


British and Russian ECAs to finance Iranian power and water projects

(Tehran Times, Tehran, 14 July 2016) Iran’s Ministry of Energy and UK Export Finance (UKEF) signed a memorandum of understanding in London over financing Iranian water and electricity projects, IRNA reported on July 13. “All the Iranian energy projects which require foreign investment or finance should obtain UKEF’s insurance coverage,” Iranian Energy Minister Hamid Chitchian told IRNA after the agreement’s signing ceremony, hoping that the inked MOU would ease financing of Iranian projects by British companies. “Iran is in need of huge investments in power sector and plans to add 47,000 to 50,000 megawatts to its current capacity in the coming ten years,” said Iranian Energy Minister Hamid Chitchian. Meanwhile, the Russian government has approved an export credit to Iran for construction of a thermal power station and electrification of railways, Russian Environment Minister Sergei Donskoi said on July 13 and Russia’s Rusatom Service expects to sign a four-year service contract for Iran’s Bushehr nuclear power plant by the end of 2016. On January 16 the United Nations, United States and European Union lifted economic and financial sanctions on Iran that had been imposed in connection with the Iranian nuclear program.

http://www.tehrantimes.com/news/404227/British-credit-agency-to-finance-Iranian-...


What's New June 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

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

  • Bangladesh project puts Exim Bank's global credibility at risk
  • JBIC rule change will allow higher risk and boost lending
  • Iran pays off outstanding export-credit debt to Germany
  • Korean environmentalists flag Kexim Bank coal financing & GCF membership conflict
  • EU Foreign Affairs Council Conclusions on business and human rights: More decisive action needed on access to justice
  • GE Announces Agreement with French Export Credit Agency
  • Shelby Blocks Democratic Efforts to Vote on Export-Import Bank Nominee
  • Italian export credit agency plans Islamic finance push
  • Azerbaijan to build a gas chemical complex jointly with Russia and Italy
  • Belarus, Russia to organize economic forums abroad together
  • State aid: Commission approves the Estonian short term export credit scheme
  • Nigerian central bank sets aside US$2.5 billion for ECA loans to non-oil exporters

Bangladesh project puts Exim Bank's global credibility at risk

(Business Standard, New Delhi, 17 June 2016) A US-based think tank today said the Bangladesh-India Maitree project could effectively end up in a financial mess. The coal-based power plant proposed to be built near the city of Khulna, close to the Sundarbans mangrove forest, is a joint venture between India and Bangladesh’s state-owned entities. The Institute for Energy Economics and Financial Analysis (IEEFA) said electricity produced from the project would cost 32 per cent more than the average electricity in Bangladesh, assuming an average plant load factor (PLF) of 80 per cent. This despite the project being heavily subsidized, "exposing investors, taxpayers and consumers to high risk and is a potential stranded asset in the making". A senior executive associated with the project, however, said the Indian government was not subsidising the project in any form. “It was only providing loan through Exim Bank to promote Indian investment in Bangladesh,” he said.
http://wap.business-standard.com/article/economy-policy/ntpc-s-bangladesh-projec...


JBIC rule change will allow higher risk and boost lending

(Financial Times, Tokyo, 14 June 2016) Japanese investment in Asean infrastructure is set to rise. The Japan Bank for International Cooperation (JBIC) has changed its lending rules to allow higher risk investment through a special account... Power and transport infrastructure projects are likely to be the main targets for Japanese firms. JBIC currently has ¥1.6tn ($15bn) in outstanding commitments to Asean countries, with much of the investment in power plants and other power-related infrastructure. The rule change will allow Japanese companies to better compete for contracts with Chinese competitors, as the two rivals vie for influence across Asean. Many projects in Asean previously fell foul of stringent [ECA] credit standards, but now Japanese firms investing in the region with the support of the government - a cohort referred to as Japan Inc - will be able to compete more aggressively with rivals from China. [Questions as to whether these rules comply with OECD and WTO rules on ECA state subsidies to exports seem inevitable, and if not, why not?]

https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ve...


Iran pays off outstanding export-credit debt to Germany

(Bloomberg, 20 June 2016) Iran has paid off outstanding export-credit debt to Germany, paving the way to open renewed trade ties between the two countries after last year’s nuclear agreement scaled back sanctions on Iran. “This is a further important step to revive our economic relations,” Sigmar Gabriel, German economy minister and vice chancellor, said in a statement on Monday. Gabriel said the payment will allow Germany to re-establish credit guarantees that support exports to Iran. The Iranian government had declined to fulfill all its credit obligations while it was subject to sanctions, some of which were lifted in January, the ministry said.

http://www.bloomberg.com/news/articles/2016-06-20/iran-pays-german-export-debt-o...


Korean environmentalists flag Kexim Bank coal financing & GCF membership conflict

(Korea Federation for Environmental Movements, Seoel, 27 June 2016) There have been big concerns over Korea Exim bank’s involvement in the Green Climate Fund (GCF) as the bank has a long record of providing financing support for coal projects. The objective of GCF is “to promote the paradigm shift towards low emission and climate-resilient development pathways by providing support to developing countries.” Korea has been praised internationally as a model on climate change and green growth as it announced the ‘low carbon and green growth’ as a national vision in 2008 and hosted GCF headquarter in Songdo.

In addition to our concerns with KEXIM's application, in general we do not believe that export credit agencies are appropriate entities to be accredited by the Green Climate Fund. Export credit agencies are created by governments with the narrow mission of promoting exports and job creation in the agency's home country. This limited mission is inconsistent with, and may be in direct conflict with, the mission and core principles of the GCF, including promoting country ownership, local sustainable development benefits, the efficient use of GCF resources, and the Fund's international competitive bidding requirements.

http://www.apmdd.org/news/333-korean-federation-for-environmental-movements-urge...


EU Foreign Affairs Council Conclusions on business and human rights: More decisive action needed on access to justice

(ECCJ, Brussels, 20 June 2016) European NGOs, while welcoming the EU Foreign Affairs Council's Conclusions on business and human rights, have called for their rapid translation into practice. They note too that the Conclusions reflect the Dutch presidency and EU Members States’ acknowledgement that the measures taken so far to ensure that companies respect human rights and are accountable for violations, remain insufficient. In particular, Article 11 notes that " The Council encourages EU Institutions and Member States to address their responsibilities as commercial actors (e.g. in public procurement) and when supporting or partnering with businesses (e.g. through export credit, trade promotion, or subsidies for the private sector).

http://corporatejustice.org/news/143-eu-foreign-affairs-council-conclusions-on-b...


GE Announces Agreement with French Export Credit Agency

(Global Trade Magazine, Newport Beach, 27 June 2016) GE has announced an agreement under which COFACE, the French export credit agency, will provide an additional line of credit for gas turbine combined cycle projects that require export financing in countries such as Saudi Arabia, Mexico, and Brazil. As a result, GE will invest $40 million to develop 60 hertz heavy duty gas turbine manufacturing capabilities in Belfort, France. The announcement came at a time when the Export-Import Bank of the United States is prevented from funding large projects because of funding issues involving the U.S. Congress.

http://www.globaltrademag.com/global-trade-daily/news/ge-announces-agreement-wit...


Shelby Blocks Democratic Efforts to Vote on Export-Import Bank Nominee

(Morning Consult, Washington, 9 June 2016) The Obama administration’s nominee for the Export-Import Bank’s board of directors became the latest pawn in the ongoing floor fight between Senate Democrats and Republicans over executive nominations. On Thursday, Senate Banking Committee Chairman Richard Shelby (R-Ala.) blocked an an attempt by Sen. Heidi Heitkamp (D-N.D.) to call a vote on the nomination of J. Mark McWatters to serve on the export credit agency’s board. Heitkamp’s request marked the latest effort by Senate Democrats to bring stalled nominations out of committee and directly to the floor — all of those attempts have been blocked by Republicans. GE also announced on June 1st that Welland, Ontario, would be the new home of its Waukesha, Wis., facility, following Congress’s failure last summer to reauthorize the Export-Import Bank, and that they intend to use Canada’s export-financing entity to pursue new business.

https://morningconsult.com/alert/shelby-blocks-democratic-efforts-to-vote-on-exp...


Italian export credit agency plans Islamic finance push

(Gulf News, Dubai, 27 June 2016) Italy’s export credit agency SACE plans to move into Islamic finance, becoming one of the first Western trade finance bodies to do so, in order to support expansion of its business in the Middle East and North Africa. SACE insured €40.7 billion ($46.4 billion; Dh169.8 billion) of international risk at the end of last year, up 11.6 per cent from a year earlier. The Middle East and North Africa accounted for 14 per cent of the total, the largest fraction outside Italy. Around a quarter of banking business in the six-nation Gulf Cooperation Council is Sharia-compliant. Italy is also keen to develop business with Iran, where the entire banking system is designated Islamic, after the lifting of international sanctions on that country last January.

http://gulfnews.com/business/economy/italian-export-credit-agency-plans-islamic-...


Azerbaijan to build a gas chemical complex jointly with Russia and Italy

(Trend News Agency, Baku, 18 June 2016) Gazprombank, the Italian export credit agency, the Russian export credit agency EXIAR and Azerbaijani company SOCAR have signed a Memorandum of Understanding (MoU) on the financing and construction of a gas chemical complex in Azerbaijan. The new large-scale petrochemical project envisages the construction in Azerbaijan processing and gas chemical plants with participation of Russian and Italian partners. According to preliminary estimates, total investment budget of the project is 3.5 billion USD. The potential volume of deliveries of Russian equipment and materials and the cost of construction and installation services to Russian contractors for the project will amount to 20% of the investment budget.

http://en.trend.az/business/energy/2547281.html


Belarus, Russia to organize economic forums abroad together

(Belarus News, Minsk, 17 June 2016) The National Center for Marketing and Price Studies of the Belarusian Ministry of Foreign Affairs and the Russian Agency for Export Credit and Investment Insurance (EXIAR) have reached an agreement on sharing information and working together to arrange visits and economic forums abroad, including in distant-arc countries. The sides agreed to share information about forthcoming foreign events, including expos, conferences, business visits for the sake of involving representatives of the Belarusian and Russian private sectors in them. “The agreement is important for diversifying export and for exporting more Belarusian products particularly to the countries, which are not traditional trade and economic partners of Belarus.

http://eng.belta.by/economics/view/belarus-russia-to-organize-economic-forums-ab...


State aid: Commission approves the Estonian short term export credit scheme

(European Commission, Brussels, 20 June 2016) The European Commission has found that the Estonian short-term export-credit scheme was in line with EU state aid rules, and in particular with the 2012 Short-term export-credit Communication. The Commission concluded in particular that the kind of insurance cover provided by the scheme to exporters established in Estonia is currently unavailable in the private market. There is a lack of insurance coverage for small and medium-sized companies (SMEs) with a small export turnover or for single export transactions (i.e. on a transaction-by-transaction basis as compared to insuring the entire export portfolio of a company). This is because private insurers are less interested in this type of transaction. In this context, the Estonian scheme allows the State to cover risks of single export transactions and risks incurred by SMEs with a small export turnover. The scheme is authorised until 31 December 2023.

http://europa.eu/rapid/press-release_MEX-16-2260_en.htm


Nigerian central bank sets aside US$2.5 billion for ECA loans to non-oil exporters

(Reuters, Lagos, 16 June 2016) Nigeria's central bank is setting aside 500 billion naira ($2.5 billion) through a debenture to be issued by Nigerian Export-Import Bank (NEXIM), for loans to non-oil exporters, after a slump in oil revenues led to the worst crisis in Africa's biggest economy in decades. The OPEC member, whose economy shrank 0.4 percent in the first quarter, has been hit hard by a slump in global oil prices. It relies on sales of crude for around 70 percent of national income and 90 percent of foreign exchange earnings.

http://www.reuters.com/article/nigeria-exports-idUSL8N1984VS


What's New May 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

  • Ex-Im Bank considers deals with corrupt governments
  • Some G7 Countries Are Still Providing Billions in Financing for Coal Plants
  • Should ECAs support [subsidize?] exports to Greece, an EU Member?
  • Ex-Im Bank stalemate threatens nuclear projects
  • China looks to export credit insurance to boost exports
  • South Africa to support automotive sector with export credit
  • South Africa to use export credit to support reindustrialization of the economy
  • SACE boosts trade ties with Argentina announcing €700m in guarantees
  • Offshore downturn hits Norway’s export credit agency GIEK
  • Italy to help Belarus improve its OECD country risk ratings
  • Germany’s SMS eyes TNG vanadium mine with ECA support
  • Trans Adriatic Pipeline financing to include OECD ECAs
  • Chinese ECA supports shale oil fired Jordanian power plant
  • UK, Kenya sign MoU on renewables including UKEF suport

Ex-Im Bank considers deals with corrupt governments

(Friends of the Earth, Washington, 11 May 2016) The U.S. Export-Import Bank loves to remind us that it is not a development agency, and, therefore, is not held to the same requirements as say a development finance institution. Even still, some of the governments that the head of Ex-Im, Fred Hochberg, has recently been meeting with would be enough to give anyone pause. While Ex-Im Bank’s mission might not be to alleviate poverty, Friends of the Earth hopes that it would not use taxpayer dollars in countries where there have been serious concerns about freedom of the press, safety of their citizens and corruption. Considering that the bank has recently been in hot water for deaths that have occurred at projects it has financed, you would think it would want to be a little more careful with the countries it engages with. This article provides examples of corrupt governments that Ex-Im has recently been communicating with.

https://medium.com/economic-policy/ex-im-bank-considers-deals-with-corrupt-gover...


Some G7 Countries Are Still Providing Billions in Financing for Coal Plants

(Natural Resources Defense Council, New York, 24 May 2016) Co-written by the NRDC, World Wide Fund for Nature (WWF), Oil Change International (OCI), Kiko Network, Japan Center for a Sustainable Environment and Society (JACSES), and Friends of the Earth Japan, a new report (pdf) finds that between 2007 and 2015, the G7 countries have provided more than $42 billion of public finance for coal in the form of direct finance, guarantees, technical assistance, and aid for coal power, coal mining and related projects. G7 nations are trying to sweep the coal financing under the rug by increasing coal financing through export credit agencies and other entities that provide limited disclosure on their projects.

https://www.nrdc.org/experts/han-chen/some-g7-countries-still-providing-billions...


Should ECAs support [subsidize?] exports to Greece, an EU Member?

(Lexology, London, 2 May 2016) The Treaty on the Functioning of the European Union (TFEU) prohibits State aid to support [subsidize?] export-credit insurance in "marketable risk" countries, which includes EU Member States. Given the difficult economic circumstances in Greece and the resulting dearth of insurance or reinsurance capacity to cover exports to Greece, in December 2013 the European Commission decided to temporarily remove Greece from the list of "marketable risk" countries in 2013 and again in 2015 - an exception set to expire on 30 June 2016. The Commission is now asking Member States, credit insurers, and other interested parties to submit information on private credit insurance capacity; the activity of insurers acting on behalf of or with State guarantee or the state itself in the provision of short-term credit insurance for exports to Greece during the period March 2015 to March 2016; changes in Greece's credit ratings for the last six months; corporate sector performance in Greece; and any other relevant data and information. The deadline for responses is 24 May 2016. [Comment: The TFEU prohibition mirrors the WTO Agreement on Subsidies and Countervailing Measures which prohibits export credit premiums (or interest rates) that "are not inadequate to cover long-term operating costs and losses", i.e. subsidies to national corporations. While professing allegiance to free markets, the EU, OECD and WTO in these ways support negotiations and exceptions which favour national and corporate interests through poorly monitored, non-transparent fora and regulations which are tantamount to a special interest "Gentleman's Club".] 

http://www.lexology.com/library/detail.aspx?g=47a56105-01c4-4abb-adfd-af4511ec60...


Ex-Im Bank stalemate threatens nuclear projects

(E&E Daily, Washington, 24 May 24 2016) A long-running political standoff over the Export-Import Bank of the United States threatens to delay billions of dollars in loans and other financial guarantees for overseas nuclear energy projects. Congress last year, after months of acrimony, voted to reauthorize Ex-Im. But the bank's foes on Capitol Hill are succeeding in limiting its ability to operate. Senate Democrats are trying to increase pressure on Senate Banking, Housing and Urban Affairs Chairman Richard Shelby (R-Ala.) to move forward with voting on bank board nominee Mark McWatters. The five-member board currently lacks a quorum and can't approve any export financing deal over $10 million until it adds a third member. McWatters, nominated in January, would fill that opening.

http://www.eenews.net/stories/1060037741


China looks to export credit insurance to boost exports

(Reuters, Beijing, 8 May 2016) China's cabinet has vowed to take steps to boost exports, including encouraging banks to boost lending, expanding export credit insurance and raise tax rebates for some firms after exports and imports fell more than expected in April, underlining weak demand at home and abroad and cooling hopes of a recovery in the world's second-largest economy.

http://www.reuters.com/article/us-china-economy-trade-idUSKCN0XZ02J


South Africa to support automotive sector with export credit

(Bloomberg, Johannesburg, 9 May 2016) South Africa is working on a plan to extend support for the automotive industry beyond the current 2020 timeframe and expand the scope of the policy. The effort forms part of the government’s latest Industrial Policy Action Plan, which also includes steps to improve buying of local products by government departments, develop labor-intensive businesses and increase industrial financing and incentives including stronger export-credit and export credit insurance support.

http://www.bloomberg.com/news/articles/2016-05-09/south-africa-readies-plan-to-e...


South Africa to use export credit to support reindustrialization of the economy

(Business Day Live, Capetown, 9 May 2016) A greater focus on the use of gas as a pillar of industrialisation is one of the new elements in the latest industrial policy action plan (Ipap), launched on Monday by Trade and Industry Minister Rob Davies. The minister said the Ipap 2016 continued the department’s drive to reindustrialise the economy. The targeted industrial financing and incentive support placed more emphasis on export credit and export credit insurance to support the country’s export effort. It also focused more on sector-specific rather than generalised incentives. In particular sector-specific incentives will be designed for the agro-processing and rail components sectors.

http://www.bdlive.co.za/business/energy/2016/05/09/sa-should-become-regions-oil-...


SACE boosts trade ties with Argentina announcing €700m in guarantees

(TFX News, Rome, 30 May 2016) Italian ECA SACE reopened its support of transactions with Argentina after the Italian undersecretary for development Ivan Scalfarotto last week announced guarantees for €700 million credit lines during his visit to the newly-liberalised Latin American country.

http://www.txfnews.com//News/Article/5594/SACE-boosts-trade-ties-with-Argentina-...


Offshore downturn hits Norway’s export credit agency GIEK

(Offshore Suport Journal, London, 27 May 2016) The Norwegian Export Credit Agency (GIEK) has said that the sharp downturn in the offshore industry means that a massive 50 per cent of its NKr102 billion (US$12.3 billion) loan guarantee portfolio has been placed under what it describes as “close scrutiny”. At the end of 2015, NKr87.2 billion of its guarantees were in the oil and gas sector.

http://www.osjonline.com/news/view,offshore-downturn-hits-norways-export-credit-...


Italy to help Belarus improve its OECD country risk ratings

(BelTA, Minsk, 12 May 2016) Italian insurance companies will assist Belarus in improving its ratings in the Organization for Economic Cooperation and Development (OECD) country risk classification. The matter was discussed at the meeting between Ambassador Extraordinary and Plenipotentiary of Belarus to Italy Alexander Guryanov and Giovanni Castellaneta, Chairman of the Board of Directors at SACE, the Italian Export Credit Agency.

http://eng.belta.by/economics/view/italy-to-help-belarus-improve-its-oecd-countr...


Germany’s SMS eyes TNG vanadium mine with ECA support

(The Australian, Canberra, 5 May 2016) The Germans missed out on the Australian submarines contract to the French. But it looks as if they are about to get deeply involved in the $970 million Mount Peake vanadium-titanium-iron project in the Northern Territory, owned by ASX-listed TNG.TNG went into a trading halt yesterday pending an announcement involving the German engineering and construction giant SMS, previously flagged as a group likely to become involved in the building of the refinery for Mount Peake product at Darwin. When TNG comes back from a trading halt it wouldn't be surprising if it had put out a smallish placement to SMS to cement their new relationship. But more to the point is SMS's history of being a regular user of Germany's Export Credit Agency scheme, meaning it could help provide part of the financing that needs to be secured before Mount Peake becomes a reality.

http://www.theaustralian.com.au/business/dataroom/germanys-sms-eyes-tng-vanadium...


Trans Adriatic Pipeline financing to include OECD ECAs

(Azernews, Baku, 16 May 2016) The Trans Adriatic Pipeline's (TAP) project financing continues to progress according to the schedule, said Ian Bradshaw, Managing Director at TAP AG. "TAP expects to secure funding from a number of multilateral institutions, such as the European Bank for Reconstruction and Development and the European Investment Bank, as well as Export Credit Guarantee Agencies of a number of OECD countries involved in the supply of goods and services," Bradshaw said. The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy's south.

http://www.azernews.az/oil_and_gas/96655.html


Chinese ECA supports shale oil fired Jordanian power plant

(Stockhouse Publishing, Vancouver, 6 May 2016) China's Yudean Group joins Attarat Power Company as a strategic investor in the Attarat Power Company (APCO) a subsidiary of Eesti Energia of Estonia, the world's biggest oil shale to energy company. Yudean has agreed to purchase 45% of the shares and Malaysia's YTL a further 15% of the shares, with Eesti Energia stepping down to 10% and Jordan's Near East Investments exiting the project. Following the completion of the share transfers (which is subject to a number of conditions), APCO will be indirectly owned by Eesti Energia AS of Estonia (10%), YTL Power International Bhd of Malaysia (45%) and Yudean Group of China (45%). Earlier this year APCO signed agreements with Bank of China (BoC) and Industrial and Commercial Bank of China (ICBC) to provide debt funding for the project.  The USD 1.6 billion debt financing is expected to be provided on the basis of support by China Export & Credit Insurance Corporation (Sinosure).

http://www.stockhouse.com/news/press-releases/2016/05/06/yudean-joins-apco-as-a-...


UK, Kenya sign MoU on renewables including UKEF suport

(SeeNews Renewables, SofiA, 18 May 2016) The UK and Kenya governments on Tuesday signed a memorandum of understanding (MoU) to increase cooperation on renewable energy. As part of the agreement, UK Export Finance (UKEF), the UK’s export credit agency, is ready to consider requests for export financing or insurance for eligible renewable energy projects in Kenya, drawing on a risk appetite of up to at least GBP 250 million (USD 360m/EUR 319m).

http://renewables.seenews.com/news/uk-kenya-sign-mou-on-renewables-525408


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