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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September 2016 What's New

"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.

  • WTO: Airbus ruling 'brings threat of EU-US trade war'
  • Canada to step up UK trade with new export hub after Brexit vote
  • Business Groups Ramp Up Push for Export-Import Bank to Make Larger Loans
  • Angola takes out EDC loan in Canada to pay for locomotives from General Electric
  • CSO Comments on Efic Policies and Procedures for environmental and social review of transactions
  • Summary report on Dutch Export Credit Facility Masterclass
  • Euler Hermes launches China trade insurance joint venture
  • Austria's OeKB and Australia's EFIC increase Iran export financing
  • U.S., French export-credit agencies’ role in OneWeb remains questionable
  • Russian ECA offers to finance $4bn in Cuban development schemes

WTO: Airbus ruling 'brings threat of EU-US trade war'

(The Week, London, 23 September 2016) French aircraft-maker Airbus has benefitted from as much as $22bn (£17bn) in illegal state aid from EU member states, including £3bn from the UK, the World Trade Organisation (WTO) has ruled. The judgement marks the latest chapter in what the BBC brands the world's "largest and longest-running trade dispute". It will not by any means be the last. On its own, the ruling has the potential to trigger a "trade war between the United States and the European Union", says The Times. The WTO says the EU has failed to comply with as many as 34 diktats designed to prevent governments subsidising Airbus at the cost of competition - and to the ultimate detriment of its big US rival, Boeing. A UK SFO (Serious Fraud Office investigation centres on "irregularities" in the use of third-party intermediaries on export deals underwritten by the UK, France and Germany through so-called "export credits".

http://www.theweek.co.uk/75318/airbus-ruling-brings-threat-of-eu-us-trade-war


Canada to step up UK trade with new export hub after Brexit vote

(The Telegraph, London, 17 September 2016) Canada is setting up an export agency office in the UK in an attempt to boost trade links with one of its biggest trading partners after the EU referendum. In the latest indication of the desire of non-EU countries to do more business with the UK, Export Development Canada (EDC) will open a London site this week. Britain is already Canada’s third-largest trading partner, with more than C$20bn (£11.5bn) of exports last year. The EDC said its decision to open a site in London showed that it takes “a long-term view on the strength of the UK economy following the Brexit vote, providing a stable source of capital”.

http://www.telegraph.co.uk/business/2016/09/17/canada-to-step-up-uk-trade-with-n...


Business Groups Ramp Up Push for Export-Import Bank to Make Larger Loans

(SDC Executive, Arizona, 15 September 2016) A growing number of business groups are urging House and Senate leaders to approve a spending bill allowing the Export-Import Bank to approve larger loans again. Fifteen groups sent a letter calling on congressional leadership to include a temporary change to the agency's quorum requirement for its board of directors in a continuing resolution (CR) so that it may again review transactions over $10 million. Under current law, the five-member board must have three people to evaluate transactions above that level. There are only two board members now.

http://www.sdcexec.com/news/12257363/business-groups-ramp-up-push-for-export-imp...


Angola takes out EDC loan in Canada to pay for locomotives from General Electric

(Macauhub, Macau, 29 September 2016) Canada’s export credit agency will finance the purchase by Angola of 100 locomotives from US group General Electric, according to an authorization granted by presidential order. The order authorizes the state to borrow US$429.5 million from the Canadian state agency and justifies the decision with the need to diversify sources of funding, while ensuring the purchase of the locomotives.

http://www.macauhub.com.mo/en/2016/09/29/angola-takes-out-loan-in-canada-to-pay-...


CSO Comments on Efic Policies and Procedures for environmental and social review of transactions

(Jubilee Australia, Sydney, 9 September 2016) The Jubilee Australia Research Centre and Oxfam Australia have submitted comments on Efic Policies and Procedures for environmental and social review of transactions prior to a 2016 government review. They note that, although Efic’s approach to addressing issues around environmental and social concerns does generally match that of other OECD Export Credit Agencies (ECAs), this unfortunately does not mean that the approach may be considered ‘international best practice’. They outline areas for improvement in relation to the standards that are used, the transparency of reporting, and accountability to affected communities and Australian taxpayers who directly or indirectly support Efic’s work. They add that Australia has long opposed the attempt to curb export credit financing of coal and other fossil fuels. Pressure from Australia and South Korea resulted in the November 2015 OECD agreement being much watered down. That agreement is insufficient for two main reasons. First, it includes coal but excludes other fossil fuels such as natural gas which also contribute to global warming. Efic itself was a financier of the massive PNG LNG deal in 2009. Second, analysis reveals other loopholes in that it leaves out financing for mining, transport and related coal infrastructure. They propose that Efic’s Policy on environmental and social reviews contain a clear statement that Efic will no longer support fossil fuel projects of any type, including all fossil fuel extractive projects and pipelines, transport infrastructure, etc. They further propose that Efic advocate amongst the OECD Export Credit Group to do the same.

Efic has announced that it is considering financing the development and construction of a new Category A project, the greenfields Boikarabelo coal mine and railway in South Africa which faced market concerns in 2015.

http://www.jubileeaustralia.org/_literature_79562/(Oct_2010)_EFIC_Environment_Po...


Summary report on Dutch Export Credit Facility Masterclass

(Both Ends, Amsterdam, 5 September 2016) At the end of 2016, the Dutch government will present a policy review of its export credit facility - as implemented by Atradius Dutch State Business (ADSB) - to the national Parliament. In conversations with multiple staff members of parliamentarians, it was concluded that it would be helpful to organise a kind of Masterclass to enable them to better understand the role of the Dutch ECA from different perspectives. Both ENDS invited a range of stakeholders to attend and contribute to this meeting with a goal to inform Dutch parliamentarians and their staff on the functioning of the Dutch export credit facility, and the possibilities to effectively counter and mitigate negative economic, social, environmental and human rights impacts in developing countries linked to ADSB supported exports and investments. At the meeting ADSB, Boskalis, Both ENDS, the Netherlands Commission for Environmental Assessment (NCEA), MVO (CSR) platform, the Dutch Banking Association, Rabobank, Transparency International and the employers’ organisation VNO-NCW held short presentations and provided input to the discussions. The Dutch National Contact Point for the OECD-Guidelines on MNE’s (NCP) participated as an observer. All participants in the Masterclass concluded that this meeting was very helpful as a preparation for a better informed parliamentary discussion on the policy review that is on the agenda later this year.

http://www.eca-watch.org/sites/eca-watch.org/files/Summary%20report%20Masterclas...


Euler Hermes launches China trade insurance joint venture

Global Trade Review, London, 12 Sepptember 2016) Euler Hermes has announced a credit insurance joint venture (JV) with China Pacific Property Insurance Company (CPPIC). Headquartered in Shanghai, the venture will operate under the name CPPIC Euler Hermes and be managed by existing members of staff from both companies. CPPIC is the third-largest property and casualty insurer in China, but also one of only a few export credit insurers in the country. The two firms have worked in partnership, growing their joint trade credit portfolio, since 2011.

http://www.gtreview.com/news/on-the-move/euler-hermes-launches-china-trade-insur...


Austria's OeKB and Australia's EFIC increase Iran export financing

Austria's OeKB raises Iran export financing
Press TV, Tehran, 28 September 2016) The Central Bank of the Islamic Republic of Iran (CBI) says Austrian export credit agency OeKB has raised its cover for Iran transactions to 1 billion euros, the Mehr news agency reports. The announcement by Austrian Minister for Finance Hans Jörg Schelling came during a meeting with CBI Governor Valiollah Seif in Vienna, the report said.
Australia hails 'dawn of new age' in Iran ties
(Payvand, San Francisco, 28 September 2016) Iran and Australia have signed fresh agreements to forge closer ties, with Austrian Trade Minister Steve Ciobo announcing the dawn of a new age of relationship. Ciobo is leading a trade delegation of more than 20 companies to Tehran, seeking out opportunities, buoyed by the prospects in Iran's mining, oil and gas, and other industries as well as the near 80 million population. Australia's export credit agency EFIC and Export Guarantee Fund of Iran (EGFI) signed a fourth MoU to facilitate trade and help businesses navigate challenges arising from sanctions which still continue to dog dealings with Iran.




U.S., French export-credit agencies’ role in OneWeb remains questionable

(Space News, Vermont, 14 September 2016) The OneWeb constellation, with a total of 900 low orbiting satellites whose capital cost has been estimated at around $3.5 billion including ground spares, is seeking export-credit agency support. But the U.S. Export-Import Bank remains on the sidelines for large projects, at least for now, and how far France's Coface can go in backing what's essentially a U.S.-based satellite manufacturing operation is unclear. All but 10 of the approximately 900 satellites, including spares, to be built for the project will be manufactured in Florida by OneWeb Satellites, a joint venture of Airbus Defence and Space and OneWeb. Ten prototype satellites will be built at Airbus’s Toulouse, France, facility. It remains unclear how much Airbus- or French-sourced hardware for the balance of the constellation will be shipped to Florida.

http://spacenews.com/u-s-french-export-credit-agencies-role-in-oneweb-remains-qu...


Russian ECA offers to finance $4bn in Cuban development schemes

(Global Construction Review, London, 29 September 2016) Russia has offered to embark on a spectacular renewal of its economic relations with Cuba, based on 55 projects with a total value of some $4bn over the next four years, and has also agreed a cooperation agreement in the nuclear power sector. The bulk of the funding would be provided by Russian banks and safeguarded by guarantees from the Agency for Export Credit and Investment Insurance products.

http://www.globalconstructionreview.com/news/russia-offers-fina7nce-4bn-cub7an-d...


August 2016 What's New

"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

  • Does the US ExIm Bank really promote US exports?
  • Norway opens $1-billion export credit line for Iran
  • Argentina Seeks IMF Help to Shed Poor OECD Export Credit Risk Ranking
  • Koreas’ export credit agency to back Sonangol financing to help Daewoo Shipbuilding
  • Paris Club Creditors Confident on Cuba Despite Liquidity Crisis
  • Nigerian ECA NEXIM, Fidelity Bank deepen non-oil exports
  • India's ECGC mulls credit insurance for Indian companies' foreign subsidiaries
  • GE Breaks Ground On Canadian Facility
  • China to intensify efforts to stabilize foreign trade including expanded export credit support
  • Ex-Im Bank Scouts Out Future Export-Financing Deals
  • Airbus credit freeze costs tally up
  • Banks develop a blockchain prototype solution for trade finance

Does the US ExIm Bank really promote US exports?

(Nottingam University, Nottingham, 27 July 2016) This 35 page paper investigates the impact of the US Export-Import Bank on US exports particularly in the wake of international competition from foreign national export credit agencies (ECAs). We employ a gravity framework on a country-industry-year-level panel dataset that matches EXIM authorizations with US bilateral exports. Our results depict the general ineffectiveness of the Bank in promoting exports within and across industries. Some heterogeneities behind the general finding are also uncovered: industries other than aerospace parts and products are more likely to benefit from EXIM authorizations, and that EXIM authorizations to larger businesses seem to be more effective in encouraging exports. Furthermore, we find no evidence that explains the role of EXIM in encouraging US exports by offsetting foreign ECA competition. These results are neither affected by competing countries' membership to the OECD Arrangement nor by the size of American firms that received EXIM support. Our results cast doubt on the ubiquitously positive claims made by the Bank and its supporters, yet also provide policy lessons for countries that are either in the inception stages of establishing their own ECAs or are now placing greater importance on ECA financing in encouraging domestic exports. See also the Global Trade Review review article

https://www.nottingham.ac.uk/gep/documents/papers/2016/2016-12.pdf


Norway opens $1-billion export credit line for Iran

(Daily Mail, London, 17 August 2016) Iran said Wednesday that Norway had offered the Islamic republic a $1-billion credit line following a meeting between their foreign ministers in Tehran. Borge Brende and Mohammad Javad Zarif signed three "export credit" deals aimed at funding "development and infrastructure projects", Iran's foreign ministry said in a statement. Iran has struggled to tap international finance as many banks fear US penalties if they do business with the Islamic republic. A landmak deal between Tehran and world powers, which was signed in July last year and came into force in January, saw many international sanctions on Iran lifted in exchange for curbs to its nuclear programme. European countries have been keen to do business with one of the last frontier markets, but Washington has maintained sanctions related to Iran's human rights record and missile programme.

http://www.dailymail.co.uk/wires/afp/article-3745268/Norway-opens-1-billion-cred...


Argentina Seeks IMF Help to Shed Poor OECD Export Credit Risk Ranking

Argentina’s sovereign debt may be outperforming most of its emerging-market peers this year, but the OECD says the country is as risky as North Korea, Venezuela and Iran. The ranking is a remnant from the days when Argentina was still a pariah in international markets -- and it could soon change. About half a dozen International Monetary Fund economists are set to touch down in Argentina in September to assess the reliability of the country’s economic statistics and the sustainability of its fiscal and monetary policies, as well as the banking industry. The so-called Article IV consultation -- normally an annual review but, in Argentina’s case, the first in a decade -- is a key step to reclaiming legitimacy among organizations like the OECD and unlocking cheaper financing from member nations.

http://www.bloomberg.com/news/articles/2016-08-11/argentina-seeks-imf-help-to-sh...


Koreas’ export credit agency to back Sonangol financing to help Daewoo Shipbuilding

(Pulse News, Seoul, 2 August 2016) State-run Korea Trade Insurance Corp. (K-sure) will likely provide additional security for two drill ships Daewoo Shipbuilding & Marine Engineering Co. (DSME) made but whose delivery is being stalled because of financial troubles of Angola’s state-run oil company Sonangol, according to the financial authorities and creditors on Monday.

http://pulsenews.co.kr/view.php?sc=30800021&year=2016&no=550925


Paris Club Creditors Confident on Cuba Despite Liquidity Crisis

(Frontera News, London, 25 August 2016) In December, Paris Club creditor nations hammered out a debt restructuring deal with the Cuban government, which forgives a large portion of monies owed from a default in 1987, while the Cuban government committed to paying off the rest over time. Observers cite these kinds of deals as evidence that the Cuban government is serious about integrating itself fully into the global economy, but some are wondering if the island’s current liquidity crisis will compel it to fall back on its debt service promise. “The Paris Club countries that struck the deal with Cuba have all been encouraging their ECAs (export credit agencies) to open up to doing more business with Cuba,” said Pavel Vidal, a former official at Cuba's Central Bank now teaching at the Javeriana University in Cali, Colombia. “In fact, the Paris Club deal allowed for individual countries to convert part of the restructured debt into projects and equity. I think the French, Dutch and the Brits have also opened some lines. Europeans are trying to get to the party before the Americans can come in."

https://fronteranews.com/news/latam/paris-club-creditors-confident-despite-liqui...


Nigerian ECA NEXIM, Fidelity Bank deepen non-oil exports

(The Nation, Lagos, 19 August 2016) The Nigerian Export Import Bank (NEXIM Bank) and Fidelity Bank Plc are taking measures meant to enhance non-oil exports and create wealth for Nigerians. Both lenders urged exporters to explore opportunities presented by the N500 billion (US$1.58 billion) non-oil Export Stimulation Facility (ESF) as well as the expansion of the export credit Rediscounting and Refinancing Facilities (RRF) to develop the economy, stimulate their operations, and create jobs for the people.

http://thenationonlineng.net/nexim-fidelity-bank-deepen-non-oil-export/


India's ECGC mulls credit insurance for Indian companies' foreign subsidiaries

(Business Standard, Mumbai, 1 August 2016) Indian ECA ECGC is likely to introduce credit insurance cover for the overseas-based subsidiaries of Indian companies, a top company official said here today. Under the proposed scheme, which is likely to be launched within a month's time, ECGC will provide cover to 85 per cent of the project cost to the overseas-based subsidiaries of the Indian companies.

http://www.business-standard.com/article/pti-stories/ecgc-mulls-credit-insurance...


GE Breaks Ground On Canadian Facility

(Compressor Tech News, Waukesha, WI, 26 August 2016) GE has started constructing its multimodal manufacturing facility in Welland, Ontario, Canada. The facility, a US$165 million investment in its first phase, will manufacture GE Power’s reciprocating gas engines, as well as components for compression, mechanical drive and power generation applications. It will also craft components for GE transportation diesel engines. The facility, expected to open in early 2018, will employ 220 people and has the ability to expand for other GE global businesses, such as Power, Oil & Gas and Transportation. Since 2010, GE’s Waukesha brand formerly held its manufacturing operations in Waukesha, Wisconsin. In September 2015, however, GE Power decided to move its manufacturing jobs to Canada, citing a lapse of charter for the US export credit agency – the Export-Import Bank (Ex-Im) as a reason. With the facility in Canada, GE will be able to access support from the country’s export credit agency, Export Development Canada (EDC). GE has a long-standing relationship with EDC, the company said.

http://www.compressortech2.com/August-2016/GE-Breaks-Ground-On-Welland-Facility/...


China to intensify efforts to stabilize foreign trade including expanded export credit support

(Xinhua, Beijing, 16 August 2016) China's State Council (the Cabinet) urged local authorities to intensify efforts to stabilize exports and imports, which both declined in the first seven months of the year. Trade facilitation measures adopted by the country's free trade zones should be duplicated, standards at different customs areas must be unified, and examination procedures should be simplified, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang Tuesday. Financial institutions should enhance credit support to companies that have received export orders, help them control exchange rate risks, and expand the coverage of export credit insurance, the statement said.

http://news.xinhuanet.com/english/2016-08/16/c_135604465.htm


Ex-Im Bank Scouts Out Future Export-Financing Deals

(Wall Street Journal, Beijing, 9 August 2016) The U.S. Export-Import Bank is vetting major export-financing deals in advance so it can resume lending as soon as a U.S. Senate logjam is resolved, its chairman said Tuesday in Beijing. Fred Hochberg, Ex-Im Banks’ chairman and president, said he hopes the Senate can clear an impasse during the next few months affecting a backlog of loan applications totaling some $20 billion at the Washington-based institution, which finances U.S. exports. The bank has run into stiff opposition from critics who characterize as “corporate welfare” its support for U.S. exporters such as Boeing Co. Last year, the bank’s operations were suspended after House Republicans stopped Congress from voting on a reauthorization measure before its charter expired last July. In December, large majorities in both chambers voted to renew its lapsed charter. But Sen. Richard Shelby (R., Ala.), the chairman of the Senate Banking Committee, has blocked the confirmation of a board member, depriving the bank of the quorum needed to approve deals exceeding $10 million.

http://www.wsj.com/articles/ex-im-bank-scouts-out-future-export-financing-deals-...


Airbus credit freeze costs tally up

(Global Trade Review, London, 3 August 2016) France’s Airbus group supplied a near tenfold increase in customer financing following a freeze in export credits from the UK, France and Germany earlier this year, in light of potential corruption and transparency issues. In its half-yearly statement the company said it supplied €587mn of financing to customers compared to €63mn for the first half of 2015. “This is temporary finance we are doing as we’re under suspension of export credit financing,” company CEO Tom Enders told analysts. However, this is only 1% of total ECA financing received in 2015, reflecting that the market is liquid and competitive, he added. Meanwhile, the UK Serious Fraud Office has opened a criminal probe related to use of third-party consultants.

http://www.gtreview.com/news/europe/airbus-credit-freeze-costs-tally-up/


Banks develop a blockchain prototype solution for trade finance

(Brave New Coin, Southbank AU, 15 August 2016) Bank of America Merrill Lynch (BofAML), HSBC, and the Infocomm Development Authority of Singapore (iDA) recently announced that they have jointly developed “a prototype solution built on Blockchain technology that could change the way businesses around the world trade with each other.” Trade finance involves a range of activities; lending, issuing letters of credit (LCs), factoring, export credit issuance, and insurance. The processes are typically time and labor intensive, involving many parties while multiple documents must be checked to reduce risk and provide assurance to sellers, buyers, and their banks. An LC or Documentary Credit represents a guarantee by a bank that a seller will receive payment from a buyer once certain conditions are met. Using blockchains, all parties involved in an LC transaction can view all actions in real-time, such as when the seller has shipped the buyer's goods. “Each action in the workflow is captured in a permissioned distributed ledger, giving transparency to authorised participants whilst encrypting confidential data,” states the project press release.

http://bravenewcoin.com/news/bank-of-america-merrill-lynch-hsbc-and-ida-develop-...


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-...


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