Welcome to ECA Watch

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

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

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

Featured publications and stories

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...


What's New December 2015

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

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • Paris's $100bn COP climate finance question
  • Climate activists say big bank climate change finance plans are greenwashing
  • Shady dealings; How Atradius Dutch State Business fails to adequately screen the businesses it supports
  • Dutch ECA faces examination of alleged OECD guidelines violation
  • US farm groups press for progress on agriculture export credit issues at WTO conference
  • India returns empty handed from Nairobi Ministerial with ECA subsidy phase-out
  • US Export-Import Bank Is Revived
  • Zambia in $642m debt fix - Cabinet approves more borrowings to pay Chinese ECAs
  • Gina Rinehart treated 80 bankers to an outback lunch to secure export credit funds for Roy Hill mine
  • South Africa's Transnet secures $2.5bn guarantee from Chinese ECA
  • Bleak Future for Oil Opens Nigeria's Nexim Bank Policy for Re-Examination
  • Russia Will Give Iran $2.2 Billion State Export Credit in 2016
  • Iran, Italy agree on $5b banking credit line
  • Egypt: 5 bln Euros from SACE to support Italian firms and export
  • Allow Indian infrastructure firms to access medium term foreign debt: Centre tells RBI
  • Bolivia’s TKSAT-1 satellite launched with Chinese export credit loan
  • Sovcomflot Group and Sberbank CIB sign $340 million long-term credit facility agreement
  • Paris Club agrees to restructure Cuba’s debt, cancels interest

Paris's $100bn COP climate finance question

(Environmental Finance, London, 1 December 2015) The pledge of $100 billion by 2020 (from developed to developing countries) may be a nice round number for politicians to reference but it is, in fact, an arbitrary figure that is grounded in political, not scientific, analysis. And it is magnitudes below the actual need. So it is little wonder that the recent findings of the OECD study, Climate finance in 2013-14 and the $100 billion goal, were lampooned rather than lauded by many developing countries and civil society. The OECD study asserted that developed countries had mobilised $61.8 billion in 2014 and were on track to provide the $100 billion – both decidedly misleading claims. For the provision of finance to count as climate finance, money must remain in, and benefit, developing countries – governments, ordinary people, especially those who are marginalised, and local economies. Yet the majority of what the OECD study counted as climate finance ultimately benefits developed countries and their investors, banks, and corporations. The OECD counted [amongst other items] export credit financing. Export credits mean loans or loan guarantees, which again require repayment. In addition, export credit agencies are by design meant to benefit home country corporations – they are not driven by developing countries' climate priorities.

https://www.environmental-finance.com/content/analysis/cop-blog-pariss-100bn-que...


Climate activists say big bank climate change finance plans are greenwashing

(The Examiner, 7 December 2015) Recently eleven banks including the World Bank, European Investment Bank and Credit Agricole, announced the launch of ‘Five Voluntary Principles for Mainstreaming Climate Actions Within Financial Institutions’. On Monday December 7, at the UNFCCC COP21 Climate Summit in Paris, France, BankTrack, Friends of the Earth France and Rainforest Action Network jointly issued a statement in response. The potential importance of this is that banks have a great deal of control over what our society chooses to do. How? It's the banks that decide which projects to underwrite, meaning that it doesn't matter how cool and wonderful a solar farm or wind farm is, the banks can block construction by refusing to loan the money necessary to fund the project.

http://www.examiner.com/article/climate-activists-say-big-bank-climate-change-fi...


Shady dealings; How Atradius Dutch State Business fails to adequately screen the businesses it supports

(Both ENDS, Amsterdam, December 2015) In November 2013, Both ENDS published a study on Atradius DSB’s support for complex export transactions that were structured via tax havens, and thus its potential underwriting of aggressive tax avoidance positions that corrode the tax sovereignty of beneficiary countries. In that study it emerged that the possibility of money laundering being part of such complex transactions could also not be excluded. A new report, based on sustained and regular monitoring of transactions supported by Atradius DSB, firmly suggests that the practices previously criticized continue. We again challenge Atradius DSB to introduce effective screening to exclude export transactions that have a high probability of including tax evasion and money laundering from its insurance services.

http://bothends.org/en/Publications/document/152/Shady-dealings-How-Atradius-Dut...


Dutch ECA faces examination of alleged OECD guidelines violation

(Both ENDS, Amsterdam, 17 December 2015) On 8 June 2015 Both ENDS – in conjunction with and on behalf of Associação Fórum Suape Espaço Socioambiental, Conectas Direitos Humanos and Colônia de Pescadores do Município do Cabo de Santo Agostinho – notified the Dutch National Contact Point of a specific instance concerning an alleged violation of the OECD Guidelines for Multinational Enterprises by Atradius Dutch State Business (ADSB) relating to the provision of export credit insurance on behalf of and for the account of the Dutch State with respect to dredging projects by the Dutch company Van Oord for the Suape Industrial Port Complex in Suape, Pernambuco, Brazil. Both ENDS’ notification states ‘In violation of its own corporate social responsibility, ADSB failed to ensure effective monitoring of the projects’ impacts. This behaviour, among other factors, resulted in a failure to consult with the affected people and communities, a loss of traditional ways of life, as well as severe damage to biodiversity and ecosystems." Local people were forcefully resettled without appropriate compensation, and several families now live in deep poverty due to the loss of their traditional livelihoods.

http://www.oecdguidelines.nl/latest/news/2015/12/17/notification-both-ends-forum...


US farm groups press for progress on agriculture export credit issues at WTO conference

(World Grain, Kansas City, 15 December 2015) In a letter to the U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative, the American Soybean Association (ASA) led a coalition of agricultural organizations in urging the U.S. Agriculture Secretary to work toward positive outcomes for agriculture in this week’s WTO Ministerial in Nairobi. With regard to export competition, the letter strongly supports U.S. efforts to eliminate export subsidies (including by the E.U. and Canada), reform export credit programs, and eliminate state trading enterprises and single desk trading. At the same time they cautioned against weakening such rules in developing nations, specifically noting subsidies by Brazil and other emerging nations for transportation, handling and processing costs for exported commodities. The ASA has subsequently expressed its disappointment with the decision to allow the continued use of export subsidies by developing nations.

http://www.world-grain.com/articles/news_home/World_Grain_News/2015/12/ASA_farm_...


India returns empty handed from Nairobi Ministerial with ECA subsidy phase-out

(Hindu Business Line, NewDelhi, 20 December 2015) The World Trade Organisation’s Ministerial in Nairobi failed to deliver anything concrete for India and other developing countries in the areas of food security and farmer protection. Worse, it has saddled them with the burden of doing away with all export subsidies in the next eight years, and all but ended the development framework of the Doha Round within which negotiations have been taking place. There was no breakthrough in areas of food, farmer security; as export subsidies are to be phased out by 2023.

http://www.thehindubusinessline.com/economy/india-returns-empty-handed-from-nair...


US Export-Import Bank Is Revived

(Wall Street Journal, Washington, 9 December 2015) Legislation signed by President Barack Obama on Friday resurrected the U.S. Export-Import Bank and ended a five-month lapse that revealed far stronger bipartisan backing for the agency than the pitched battle to shut it down suggested. The outcome now gives the bank a firm footing until September 2019, but the brawl over its existence this year left both economic and political scars. The New York Times however has reported that: Yet an obstacle remains: With three empty seats on its five-member board, the bank lacks a quorum. Until Mr. Obama nominates members, and the Republican-controlled Senate confirms them, Ex-Im Bank can only approve small export deals, not the big orders for aircraft, satellites and major manufacturing equipment the bank is best known for — leaving the likes of Boeing, General Electric and Caterpillar in limbo.

http://www.wsj.com/articles/export-import-bank-set-for-renewal-1449265587


Zambia in $642m debt fix - Cabinet approves more borrowings to pay Chinese ECAs

(Post News, Zambia, 18 December 2015) The Zambian government is under pressure to borrow over US$642 million to pay Chinese lenders as overdue down payment for loans worth US$3 billion. According to a Cabinet memorandum, Zambia has contracted US$3,012,466,199 in concessional and non-concessional export credit from China, but the government has failed to pay the required down payment of US$642,993,572 on all 12 loans due to fiscal constraints.

http://www.postzambia.com/news.php?id=13979


Gina Rinehart treated 80 bankers to an outback lunch to secure export credit funds for Roy Hill mine

(Business Insider Australia, Sydney, 4 December 2015) Yesterday Gina Rinehart’s Roy Hill mine hit yet another snag. For a second time the first shipment of iron ore from Roy Hill was delayed following safety concerns. At a Sydney Mining Club function last night — held by Rinehart with the intention of celebrating the first shipment — Rinehart’s chief financial officer, Garry Korte, revealed how the mining magnate secured the $US10 billion funding package needed to keep the project afloat. According to Korte, Rinehart “personally” hosted a lunch in the outback, inviting around 80 bankers from around the world. “She talked to each guest individually,” he said, “which meant we secured virtually on the spot, billions of dollars of commercial bank support.” Her “personal touch” with the export credit agencies saved the project, said Korte. It is expected that this was in reference to the $7.2 billion in funding secured in March 2014 from a global consortium of banks including Australia’s majors and a group of national export-import finance banks. Korte also said Rinheart hosted a “famous” dinner with the “conservative” export credit agencies, who underpinned the finance, without which the project might not have happened. Korte also noted that: “The head of the lead export credit agency on the debt deal danced with the chairman, Mrs Rinehart, and it seemed to help his enthusiasm for the project substantially … quite unexpectedly, a few minutes later he announced at the dinner he was going to bring forward his board meeting to deal with our financing”.

http://www.businessinsider.com.au/gina-rinehart-treated-80-bankers-to-an-outback...


South Africa's Transnet secures $2.5bn guarantee from Chinese ECA

(The Citizen, Johanesburg, 3 December 2015) Transnet and China Export Credit Insurance Corporation (Sinosure) on Wednesday agreed to a $2,5 billion funding guarantee in a ceremony attended by South African President Jacob Zuma and his Chinese counterpart Xi Jinping, who is on a State visit to South Africa. The news came in a flurry of deal-making on the eve of the first Forum for China-Africa Co-operation (Focac) summit in Africa, being held in Johannesburg this week. South Africa and China announced a number of other deals worth a total US$6 billion on Wednesday.Transnet announced that it would use the guarantee to finance procurement of mechanical, electrical products and equipment from Chinese enterprises. It would also cover funding for operation, maintenance and other services from Chinese enterprises in South Africa. The credit terms are not intended to exceed 15 years, in line with Transnet’s stated objective of matching its liabilities with the life of assets.

http://www.citizen.co.za/892499/transnet-secures-25bn-guarantee-from-chinese-age...


Bleak Future for Oil Opens Nigeria's Nexim Bank Policy for Re-Examination

(This Day Live, Lagos, 19 December 2015) Given that oil remains the basis upon which Nigeria's national budget is benchmarked, the downturn opens the country up to harsh vulnerabilities. Since this reality was fairly foreseen and foretold by development analysts it rightly ought not to have met Nigeria unprepared, right? To be fair to government, specific proactive steps had long been taken by governments including mandating a development finance agency with the responsibility of designing and driving the vision to promote and grow the non-oil sectors of the economy. That obligation fell on the laps of the nation’s flagship development finance agency, the Nigerian Export-Import Bank, NEXIM.

http://www.thisdaylive.com/articles/bleak-future-for-oil-opens-nexim-bank-s-poli...


Russia Will Give Iran $2.2 Billion State Export Credit in 2016

(Sputnik News, Tehran, 23 December 2015) Russia plans to provide Iran with $2.2 billion in state export credit in 2016 as part of a $5 billion loan plan, Russia's First Deputy Prime Minister Igor Shuvalov said Thursday.

http://sputniknews.com/world/20151223/1032208835/russia-iran-billion-state-expor...


Iran, Italy agree on $5b banking credit line

(Tehran Times, Tehran, 1 December 2015) Iran and Italy have agreed to open a $5-billion credit line, in a bid to pave the way for optimal banking and economic ties between the two countries once sanctions against the Islamic Republic are lifted. The credit line is projected to take effect one day after the implementation of the Joint Comprehensive Plan of Action (JCPA), a document drafted and signed by Iran and world major powers as a solution to Iran’s nuclear program.

http://www.tehrantimes.com/index_View.asp?code=251279


Egypt: 5 bln Euros from SACE to support Italian firms and export

(Ansamed, Rome, 11 December 2015) The Italian export credit agency SACE has announced five billion euros in operations being assessed to support Italian export and firms in Egypt, one of the most strategic markets for the country in the Mediterranean. SACE has in Egypt a portfolio of insured transactions worth 1.6 billion euros, mostly in the energy, petrochemicals and infrastructure and constructions sectors, including both large Italian companies and many SMES.

http://www.ansamed.info/ansamed/en/news/sections/economics/2015/12/11/egypt-5-bl...


Allow Indian infrastructure firms to access medium term foreign debt: Centre tells RBI

(India Times, New Delhi, 27 December 2015) The government has asked the Reserve Bank of India to reconsider its external commercial borrowing (ECB) norms to allow foreign currency debt to infrastructure sector for medium term also. Sources said Transport and Highways Secretary Chhibber has written that "many export credit agencies are required to follow OECD arrangements wherein a member is not permitted to extend export credit beyond a period of 10 years for all categories (except non nuclear power plants) for a category II country such as India, whereas the revised ECB framework allow Indian infrastructure companies to access long term foreign currency borrowings with a minimum average maturity of 10 years (under Track II)".

http://articles.economictimes.indiatimes.com/2015-12-27/news/69334850_1_track-ii...


Bolivia’s TKSAT-1 satellite launched with Chinese export credit loan

(Space News, Paris, 28 December 2015) The Bolivian Space Agency (ABE) said its Tupac Katari (TKSAT-1) telecommunications satellite is expected to generate $2 million in monthly revenue in 2016 and to reach a fill rate in the coming years that could justify a second satellite. ABE did not disclose the specific terms of its China Development Bank loan, but most export-credit agencies advance funds at low interest rates, with repayming starting well after the satellite is operational in orbit.

http://spacenews.com/bolivias-tksat-1-expected-to-generate-500-million/#sthash.B...


Sovcomflot Group and Sberbank CIB sign $340 million long-term credit facility agreement

(Your Oil & Gas News, Aberdeen, 22 December 2015) Sovcomflot Group and Sberbank CIB  have signed a 14-year $340 million credit facility agreement to finance the construction of three Arctic shuttle tankers for the Novy Port project  (project operator: Gazprom Neft). Commenting on the transaction, Nikolay Kolesnikov, Chief Financial Officer of Sovcomflot, said: “With this new financing Sovcomflot will have raised a total of over USD 900 million of long-term debt finance from commercial banks and export credit agencies in the course of 2015.”

http://www.youroilandgasnews.com/sovcomflot+group+and+sberbank+cib+sign+$340+mil...


Paris Club agrees to restructure Cuba’s debt, cancels interest

(Post News, Zambia, 15 December 2015) According to the Paris Club, representatives of the Group of Creditors of Cuba and of the Government of the Republic of Cuba met from December 10-12 and on Saturday came up with an arrangement to clear US$2.6 billion of debt in arrears due to the Group of Creditors of Cuba over an 18-year period. After striking the agreement, Paris Club said the Group of Creditors of Cuba’s export credit agencies that wish to do so will resume their export credit activities. The Group of Creditors of Cuba includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

http://www.postzambia.com/news.php?id=13908


What's New November 2015

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

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • OECD deal to curb coal financing has more holes than a sieve
  • US bill with Ex-Im extension attached extended to 4 December 2015
  • BPIFrance issues its first export credit
  • Envoys cry foul as US seeks to protect its farm export credits
  • Petrobras secures US$1.84bn in export credit from ECAs
  • Sinosure executive dies days after corruption probe started
  • Ukraine sets up export credit agency
  • Tata Group Gets $500 Million of Canada Export Credit Financing

OECD deal to curb coal financing has more holes than a sieve

(Friends of the Earth, Paris, 18 November 2015) After nearly two years of discussions, the Organisation of Economic Cooperation and Development member countries have finally reached an agreement on reducing their support to some coal plants through their export credit agencies. The agreement comes a day after the G20 had reiterated its willingness to reduce inefficient fossil fuel subsidies and only 12 days before the start of COP21, the climate change conference. The agreement, which only covers some OECD-member export credit agency financing for coal power plants and leaves out financing for mining, transport and related coal infrastructure, won’t do what is needed to solve the climate crisis. A recent research report notes that G20 members provide $452bn a year in fossil fuel production subsidies – despite pledges to remove them and take action to limit climate change.

http://www.foe.org/news/news-releases/2015-11-deal-to-curb-coal-financing-has-mo...


US bill with Ex-Im extension attached extended to 4 December 2015

(CCJ, Washington, 23 November 2015) President Barack Obama signed into law Friday, Nov. 20, a bill to extend highway funding, which includes Ex-Im renewal, for two weeks. A dozen Senators and 28 Representatives have been delegated to a bicameral conference committee tasked with producing a multi-year bill both chambers can agree to. The US House of Representatives Nov. 5th voted 363-64 to approve a multiyear transportation funding bill that would also renew the Export-Import Bank, setting up negotiations with the Senate, which had already passed its own highway funding bill. The two chambers must now resolve their differences. House Republicans had proposed 10 amendments with respect to the Ex-Im provisions of the Bill.

http://www.ccjdigital.com/president-signs-bill-to-extend-highway-funding-through...


BPIFrance issues its first export credit

(Global Trade Review, Paris 24 November 2015) France’s Banque Publique d’Investissement (Bpifrance) has issued its first export credit facility to bread equipment manufacturer Mecatherm, for the export of two bread production lines to Mozambique. Created in 2013, Bpifrance offers capital and innovation investment, guarantees and support for small businesses’ internationalisation. It is in the process of taking over Coface’s ECA offering to gather all public export support under one umbrella, with completion expected by mid-2016.

http://www.gtreview.com/news/europe/bpifrance-issues-first-export-credit/


Envoys cry foul as US seeks to protect its farm export credits

(Livemint, Delhi, 2 November 2015) The US has demanded ‘safe harbor’ protection for its controversial farm export credit programme from the disciplines underpinning the World Trade Organization’s agreement on subsidies and countervailing measures despite denying such a flexibility to India and other developing countries for public stockholding programmes for food security last year. In October, Washington’s trade envoy Ambassador Michael Punke sought the ‘safe harbor’ protection for export credits for its farm products from legal challenges arising from the disciplines in the WTO’s agreement on Subsidies and Countervailing Measures (SCM), which also apply to OECD export credit agencies. The EU has joined forces with Brazil and five other farm exporting countries to propose tighter WTO rules on export subsidies and similar measures, one month ahead of the global trade body’s ministerial conference in Nairobi, Kenya.

http://www.livemint.com/Politics/t1MuhoVSvG8bR7WlPxxe2L/Envoys-cry-foul-as-US-se...


Petrobras secures US$1.84bn in export credit from ECAs

(Global Trade Review, London, 18 November 2015) Brazilian national oil company Petrobras has concluded negotiations with international export credit agencies (ECAs) for a total of US$1.84bn. According to a company statement, this financing will contribute towards its fundraising efforts for 2016. The negotiations involve Italian ECA Sace, UK Export Finance (UKEF), Nippon Export and Investment Insurance (NEXI) from Japan and Austria’s Oesterreichische Kontrollbank (OeKB).

http://www.gtreview.com/news/americas/petrobras-us1-84bn-export-credit-ecas-sace...


Sinosure executive dies days after corruption probe started

(Caixin, Beijing, 27 November 2015) The chief auditor of state-owned Chinese ECA Sinosure was found dead in his office five days after he was put under investigation by the Communist Party's graft-fighting agency, a person with knowledge of the matter says. Agence France Press in Beijing also reports that Dai Chunning, a deputy general manager at Sinosure, “is suspected of serious discipline violations and currently under investigation”, the Commission for Discipline Inspection, a branch of the ruling Communist Party, said on its website.

http://english.caixin.com/2015-11-27/100879326.html


Ukraine sets up export credit agency

(Ukranian Journal, Kiev, 3 November 2011) The Ukrainian government is planning to create an export-credit agency to support national exports. The initiative is stipulated in draft law No. 9373 on the state financial support of exports, which was registered in Parliament on November 1. "The creation is foreseen of a state-run financial enterprise – a export-credit agency created in the form of a public joint-stock company by the state in the person of the Ukrainian cabinet - to secure Ukrainian exporters from commercial and non-commercial risks and to provide guarantees of the fulfillment of liabilities under foreign economic agreements by foreign buyers," reads the bill.
 
http://www.ukrainianjournal.com/index.php?w=article&amp%3Bid=13451


Tata Group Gets $500 Million of Canada Export Credit Financing

(Bloomberg, Ottawa, 4 November 2015) Tata Group, the Indian owner of assets including Jaguar Land Rover and the Tetley Tea brand, will receive as much as $500 million a year in financing from Canada’s government-owned export development bank. EDC will underwrite loans to the Tata Sons unit to support orders from local suppliers, the Ottawa-based agency and Mumbai-based company said in a joint statement Wednesday. Tata has invested C$1.3 billion ($1 billion) in its Canadian operations over five years for products such as steel, chemicals and consulting services. The Tata financing follows a $500 million arrangement in April 2014 for Reliance Industries Ltd., another Indian company. Canada is seeking to broaden its exports beyond the U.S., which currently buys about three quarters of its northern neighbor’s foreign shipments.

http://www.bloomberg.com/news/articles/2015-11-04/tata-group-gets-500-million-of...


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