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 October 2018

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.

  • UK Government climate targets branded ‘laughable’ as UK Export Finance supports new oil refineries abroad
  • NGOs release list of world’s top coal plant developers
  • Boeing says Exim Bank vital for the US amid competition from China
  • Denmark provides world’s largest export credit agency wind financing
  • Longest Gas Pipeline in Nigeria Gets Green Light With Sinosure cover
  • Vinfast, set to be Vietnam's first domestic carmaker, gains $950M ECA credit line
  • Global Export Credit Agencies Support Iran Trade Coverage
  • Tonga starts repaying US$4.7m a year to Chinese ECA for reconstruction
  • Botched Chinese ECA project in Africa is a warning to belt and road investors
  • Africa-India trade to double by 2021 with ECA help

UK Government climate targets branded ‘laughable’ as UK Export Finance supports new oil refineries abroad

(Global Witness, London, 10 October 208) On the week that the Intergovernmental Panel on Climate Change has released its report on the scale of the challenge to limit the dangers of climate change, the near-simulanteous announcement of new UK Government support for oil and gas abroad has been labelled “staggering.” UK Export Finance (UKEF), the UK’s export credit agency which underwrites loans and insurance for risky export deals as part of efforts to boost international trade, announced on Tuesday that it is considering finance for an expansion of an oil refinery in Bahrain which would allow its total output to increase up to a maximum of 380,000 barrels per day. Adam McGibbon, Climate Change Campaigner at Global Witness, said: “As the world reels from the news that we have twelve years to prevent catastrophic climate breakdown, today’s announcement by the government is staggering. The UK claims to be a climate leader, but it continues to spend billions pumping fossil fuels out of the ground abroad." Articles in The Times, The Indpendent, BBC and Ekklesia highlight this contradictory approach.

https://www.globalwitness.org/en/press-releases/uk-government-climate-targets-br...


NGOs release list of world’s top coal plant developers

(Urgewald, Berlin, 4 October 2018) Four days before the International Panel on Climate Change (IPCC) puts forward its special report on 1.5°C, NGOs have released a new list of the world’s top 120 coal plant developers.  “Building new coal plants is an assault on the Paris climate goals,” said Heffa Schuecking, director of the German environment NGO Urgewald. “Our list names the top companies investors and banks need to shun if they are committed to limiting our planet’s temperature rise.” While 2017 was another record-busting year for renewables, coal power is still growing in many parts of the world. Currently, 1,380 new coal plants or units are planned or under development in 59 countries. The world’s largest coal plant developer is China’s National Energy Investment Group (NEI), which aims to build 37,837 MW of new coal plants.

https://mailchi.mp/banktrack/over-600000-mw-of-new-coal-threaten-15c-climate-tar...


Boeing says Exim Bank vital for the US amid competition from China

(The National, Abu Dhabi, 3 October 2018) Planemaker Boeing said the US Export-Import Bank (Exim), the country's export credit agency, [sic - return?] to its full lending powers is vital to the country's economy and the company's ability to compete with global rivals. The US is locked in an escalating trade war with economic rival China in a tit-for-tat round of tariffs. The long-hobbled US export credit agency, which facilitates export deals between American manufacturers and overseas buyers, has been in limbo for three years due to congressional inaction. In 2018, export credit is expected to remain a "marginal" share of aircraft financing but export credit agency volumes will increase to stable levels from historical lows this year, Boeing said. [Export credit agencies are major funders of aircraft - in 2010 about 50% of all Airbus deliveries were covered by export credit agencies. ECAs allocate about a third of their long-term financing to aircraft sales, the largest representation of any sector.]

https://www.thenational.ae/business/aviation/boeing-says-exim-bank-vital-for-the...


Denmark provides world’s largest export credit agency wind financing

(Global Trade Review, London, 28 September 2018) Denmark’s EKF has signed an £800mn guarantee for Hornsea 1 in what it says is the largest wind financing that any public export credit agency has ever provided. Located off the coast of Yorkshire, UK, Hornsea 1 is currently being constructed by Danish wind farm developer Orsted, formerly Dong Energy. According to EKF, it will finance suppliers such as Siemens Gamesa Renewable Energy, but also a “vast number of sub-suppliers” from Denmark. EKF has also guaranteed about EUR 100 million of the EUR 210 million European Investment Bank (EIB) facility for the Euro 700 million Northwester 2 offshore wind farm in Belgian waters.

https://www.gtreview.com/news/europe/denmark-provides-worlds-largest-export-cred...


Longest Gas Pipeline in Nigeria Gets Green Light With Sinosure cover

(Pipeline Technology Journal, Hannover, 27 September 2018) The 614-km, 40 inch Ajaokuta - Kano Gas Pipeline (AKK), the single biggest gas pipeline in the history of oil and gas operations in Nigeria, will now go forward with $ 2.38 bn financing secured by the China National Petroleum Corporation. While 85 per cent of the money is expected to be provided by the financiers, which include Industrial and Commercial Bank of China, Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency providing insurance cover, the remaining 15 per cent will be provided by the contractors, which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline Bureau consortium.

https://www.pipeline-journal.net/news/longest-gas-pipeline-nigeria-gets-green-li...


Vinfast, set to be Vietnam's first domestic carmaker, gains $950M ECA credit line

(Reuters, Hanoi, 10 October 2018) VinFast, which aims to become Vietnam's first domestic car manufacturer, said it has secured a 12-year credit facility for as much as $950 million to help buy machinery and equipment from German suppliers. Vingroup has earmarked about $3.5 billion for the project. Credit Suisse and HSBC were the lead arrangers and the financing agreement was guaranteed by German export credit agency Euler Hermes.

https://www.euronews.com/2018/10/10/vinfast-set-to-be-vietnams-first-domestic-ca...


Global Export Credit Agencies Support Iran Trade Coverage

(Financial Tribune, Tehran, 20 October 2018) Global Export Credit Unions participating in a meeting of the Berne Union Credit and Investment Insurers this week backed sustained cooperation with Iran despite the US move earlier this year to pull out of the historic nuclear agreement. According to a press release by the Export Guarantee Fund of Iran, whose representative attended the event, the countries present declared that insuring trade with Iran is possible under the existing circumstances. Arash Shahraini, a member of board of directors and technical deputy of EGFI told the Financial Tribune on Sunday that while there was a positive mood of support for Iran coverage at the meeting, members were cognizant of the fact that lack of a proper banking channels for payments to Iran continues to be a main hurdle to promoting Iranian trade with the outside world.
 

https://financialtribune.com/articles/economy-business-and-markets/94595/global-...


Tonga starts repaying US$4.7m a year to Chinese ECA for reconstruction

(Matangi, Tonga, 22 October 2018) The Tonga Government will start paying US$4.7m a year during the next ten years, (principal only) of its US$52m loan from the Exim Bank of China that was used to fund reconstruction projects after the 2006 riots in Nuku'alofa. The start of the principal repayments has already contributed to a $22.8m decline in Tonga’s foreign reserves in September. Now Tonga is confronting the real cost of the riots and still recovering from the impact of Tropical Cyclone Gita which struck the main island of Tongatapu in February 2018 and caused about US$148m worth of damage, equivalent to nearly a third of the country's gross domestic product.

https://matangitonga.to/2018/10/22/tonga-starts-repaying-108m-year-china-reconst...


Botched Chinese ECA project in Africa is a warning to belt and road investors

(South China Morning Post, Hong Kong, 29 October 2018) The planning behind many of China’s major infrastructure projects abroad has been “downright inadequate”, leading to huge financial losses, according to the head of the country’s state export credit insurer. Wang Wen, of China Export and Credit Insurance Corporation, known as Sinosure, said Chinese developers and financiers of projects in developing nations supported by Beijing’s “Belt and Road Initiative” need to step up their risk management to avoid disaster. He cited the mistakes of a major railway project in Africa that has cost Sinosure close to US$1 billion in losses. “Ethiopia’s planning capabilities are lacking, but even with the help of Sinosure and the lending Chinese bank it was still insufficient.” He said other China-backed projects plagued by poor preparation have included sugar refineries that have lacked a supply of sugar beet, and underused railways in Latin America.

https://www.scmp.com/business/banking-finance/article/2170549/botched-chinese-ra...


Africa-India trade to double by 2021 with ECA help

(Southern Times, Windhoek, 29 October 2018) Trade between Africa and India has risen over the past 10 years and is highly likely to double its total of US$60 billion in 2017 to US$120 billion in 2021, according to a report released by the African Export-Import Bank (Afreximbank) and the Export-Import Bank of India (Exim India). The impressive growth in trade between Africa and India stems from a mix of factors... Against the backdrop of increasing uncertainty in the global economy, reliance on innovative and non-traditional financing solutions developed by export credit agencies, including the Export-Import Bank of India (Exim India) and the African Export-Import Bank (Afreximbank), not only helps in mitigating risks in international trade but also contributes to promoting regional trade and investment.

https://southerntimesafrica.com/site/news/africa-india-trade-to-double-by-2021


What's New September 2018

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.

  • Ottawa orders Export Development Canada to examine lending practices
  • The South African ECA that can invest billions in public money on shadowy projects
  • Environmental groups to campaign against 'strategic' corporate lawsuits
  • China says it is helping Africa develop - not pile up ECA debt
  • Chinese oil firm agrees to secure funds for Nigeria's $2.8 B AKK pipeline project
  • Siemens closes in on massive Iraq deal with promise of German ECA support
  • UKEF office in UAE, a country accused of war crimes, promotes arms sales
  • China’s Exim Bank to boost lending to support exporters hit hard by trade war
  • International trade at a time of increased US and EU sanctions - What should ECAs do now?
  • Asian environmental groups strongly crliticize Korea Export-Import Bank support for overseas coal

Ottawa orders Export Development Canada to examine lending practices

(Globe and Mail, Toronto, 26 September 2018) Ottawa has ordered the nation’s export credit agency to consider more carefully the human-rights implications of loans and insurance it offers in support of Canadian businesses. A Sept. 24 letter from International Trade Diversification Minister Jim Carr to Martine Irman, chair of Export Development Canada’s board of directors, urged the Crown corporation to ensure its internal procedures accord with Canada’s obligations under international humanitarian law. Human-rights and environmental-advocacy groups have criticized EDC for decades over what they say is a pattern of giving financial assistance to companies involved in harmful projects overseas. “The agency is essentially self-governing in the areas like environment, human rights and anti-corruption,” Karyn Keenan, director at ECA-Watch member Above Ground. Above Ground's submission to EDC on strengthening environmental and human rights protection can be found here and their recommendations on bringing EDC’s climate change policy in line with Canada’s commitments can be found here.

https://www.theglobeandmail.com/politics/article-ottawa-orders-export-developmen...


The South African ECA that can invest billions in public money on shadowy projects

(Daily Maverick, Johannesburg, 3 September 2018) The Export Credit Insurance Corporation of South Africa (ECIC) uses public funds for international projects it chooses to invest in. Right now, the agency is considering lending a part of $14-billion needed by US energy company Anadarko for a giant liquefied natural gas project in Mozambique. Four ECAs are showing interest in providing them with credit for $12-billion of that amount –Italy (SACE), Japan (JBIC), China (C-EXIM), the US (US EXIM) and South Africa. According to an EIA conducted for Anadarko by Environmental Resources Management/Impacto, there will be “major” negative environmental and social impacts during the construction and operational phases. According to ECIC CEO Mandisi Nkuhlu, they are not bound by the ECA transparency guidelines of the OECD. The ECAs involved have collectively contracted an Italian consulting firm, RINA, to conduct an environmental impact assessment of the project. For local communities and the environment the project will be disastrous. The project is leaving entire communities landless, with no livelihood, and insufficient resettlement and compensation, if any. Unique ecosystems such as mangroves, endangered species of sea life, ocean flora and pristine beaches will be put at great risk. ECAs have a history of funding projects that are sometimes corrupt, violate human and environmental rights, and are financially and ethically questionable. The Canadian ECA, Export Development Canada, financed $41-million of a $52-million jet sold by Canadian company Bombardier to the notorious Gupta family, who have been deeply embroiled in state capture and systemic corruption in South Africa. The Canadian agency lent the Guptas $41-million to purchase a Canadian product from a company that was struggling financially.

https://www.dailymaverick.co.za/article/2018-09-03-sa-export-agency-invest-billi...


Environmental groups to campaign against 'strategic' corporate lawsuits

(Global Legal Post, London, 29 August 2018) 20 environmental and civil liberties groups have joined foceces to protest against companies using lawsuits they say are aimed at silencing critics. The ‘Protect the Protest’ task force is targeting what it says are known as strategic lawsuits against public participation, or SLAPPs, which use legal action and the threat of financial risk to deter people and groups from speaking out against something they oppose. The twenty environmental and civil liberties groups say the lawsuits are aimed at limiting free speech and silencing critics. Katie Redford, co-founder and director of EarthRights International, says ‘we know from our own experience that this legal bullying tactic will work if it's not shut down.’

http://www.globallegalpost.com/corporate-counsel/environmental-groups-to-campaig...


China says it is helping africa develop - not pile up ECA debt

(Reuters, Beijing, 4 September 2018) A wave of African nations seeking to restructure their debt with China has served as a reality check for Beijing’s ties with the continent, though most of its countries still see Chinese lending as the best bet to develop their economies. China is helping Africa develop, not pile up debt, a top Chinese official said on Tuesday, as the government pushes back against criticism it is loading the continent with an unsustainable burden during a major summit in Beijing. Bloomberg noted that in recent months, Beijing has faced criticism about its debt practices from countries ranging from Australia to India, with even some Chinese academics airing doubts at home. Malaysian Prime Minister Mahathir Mohamad warned against “a new version of colonialism” during a visit to Beijing last month after suspending a $20 billion Chinese-built rail project. Claims that China was an “economic predator” in Africa, pillaging natural resources and dragging it into a debt crisis, were “as false as they are sensational,” the Xinhua official news agency said in a commentary. Chinese President Xi Jinping pledged debt relief to some poorer African nations, attempting to push back against a major criticism of his signature Belt and Road Initiative. A recent Time Magazine opinion piece noted "As African countries sink deeper and deeper into Beijing’s carefully laid debt trap, the United States could pay a steep cost in reduced cooperation on counterterrorism and job creation.

https://www.reuters.com/article/us-china-africa/china-says-it-is-helping-africa-...


Chinese oil firm agrees to secure funds for Nigeria's $2.8 B AKK pipeline project

(Daily Trust, Abuja, 3 September 2018) China National Petroleum Corporation (CNPC) has assured the Nigerian National Petroleum Corporation of its unflinching commitment towards securing funding for the Ajaokuta-Kaduna-Kano (AKK) pipeline project. Financing for the 40-inch by 614km AKK gas pipeline, enabling connectivity between the East, West and North that is currently non-existent, is expected to cost about $2.8 billion, for the project described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria. While 85 percent of the money is expected to be funded by the financiers which include Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency (ECA) providing insurance cover, the remaining 15 percent will be provided by the contractors which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline (CPP) Bureau consortium.

https://www.dailytrust.com.ng/chinese-oil-firm-agrees-to-secure-funds-for-nnpcs-...


Siemens closes in on massive Iraq deal with promise of German ECA support

(Handelsblatt, Berlin, 24 September 2018) German engineering conglomerate Siemens is nearing a massive contract to boost Iraq’s power generation infrastructure. The deal is thought to be worth between €8 and €13 billion ($11.75 – $15.25 billion) and consists of numerous smaller projects. They would involve partnerships with local contractors, which would receive part of the sum. Siemens' chief Joe Kaeser meeting with Iraqi prime minister, Haider al-Abadi, in Baghdad, came after German Chancellor Angela Merkel had put in a special call to Mr. al-Abadi in support of the deal, government sources told Handelsblatt. A senior official in the economics ministry joined Mr. Kaeser to Iraq and Ms. Merkel’s government has also promised extensive export credit guarantees. If successful, the contract will be one of the largest in the company’s history.

https://global.handelsblatt.com/companies/siemens-massive-iraq-deal-germany-ge-g...


UKEF office in UAE, a country accused of war crimes, promotes arms sales

(The Canary, London, 15 September 2018) UK Home Secretary Sajid Javid recently hailed the UAE’s important role and pioneering initiatives to promote international peace and security and combat extremism and terrorism. Javid’s comments come after the UN released a report on 28 August indicating the UAE may be guilty of committing war crimes in Yemen. In April 2018, the UK Government’s Export Credit Agency declared that the Gulf Cooperation Council, of which the UAE is a member, is a priority market and it established a “dedicated UK Export Finance team” based in the UAE. According to the Campaign Against Arms Trade, the UAE is Britain’s ninth largest purchaser of arms. From 2008 to 2018, UK weapons sales to the UAE totalled nearly £904m, a number which increases to more than £7.3bn if “dual-use” technology is included.

https://www.thecanary.co/uk/news/2018/09/15/sajid-javid-hails-a-country-accused-...


China’s Exim Bank to boost lending to support exporters hit hard by trade war

(South China Morning Post, Hong Kong, 21 September 2018) The Export-Import Bank of China, the country’s leading provider of export financing, will team up with other government agencies to help companies who have been hit hard by the US trade tariffs. Following Tuesday’s meeting of the State Council, China’s cabinet, Premier Li Keqiang announced a series of measures to support exporters, including cutting customs clearance red tape, reducing the cost of customs procedures, expanding export credit insurance and increasing export tax rebates. The announcement came hours after the US imposed tariffs on an additional US$200 billion of Chinese goods, on top of the $50 billion Chinese imports already sanctioned.

https://www.scmp.com/news/article/2165169/chinas-exim-bank-boost-lending-effort-...


International trade at a time of increased US and EU sanctions - What should ECAs do now?

(Out-Law, London, 4 September 2018)  A new UK authority called the Office of Financial Sanctions Implementation (OFSI) has been established to better inform businesses of the risks that arise from financial and trade sanctions that restrict trade and transactions with sanctioned persons, businesses and certain sectors. Arms embargoes and restrictions on exporting equipment and technology that can be used by the military are common and generally understood. What is also common, but less well understood, are the prohibitions or licence requirements on doing business with the thousands of people who are listed on sanctions lists or connected with such persons, and the sectoral trade restrictions can apply. For example, US government officials are warning UK banks (and OECD ECAs?) not to breach US sanctions against Iran and Russia. China's state-controlled Sinopec is pressing ahead with a $1.06bn upgrade project at Iran's 400,000 b/d Abadan refinery, despite the imminent return of US sanctions on Iran's energy sector. Companies have been rethinking plans to invest in Iran since the US withdrew from the nuclear deal and reimposed sanctions. Some contracts have been cancelled with state-owned NIOC and its subsidiaries.

https://www.out-law.com/en/articles/2018/september/international-trade-increased...


Asian environmental groups strongly crliticize Korea Export-Import Bank support for overseas coal

(Korea Times, Bangkok, 9 September 2018) [translation] At the UN office in Bangkok, Thailand, where negotiations were held to prepare detailed guidelines on the implementation of the 2015 Paris Convention on Climate Change, there were dozens of Asian environmental group activists including Japan's Friends of the Earth and WWF China Office. They criticized Korea, China, and Japan for their financial support for coal-fired power plants in Asia. "South Korea is one of the world's largest financial supporters of coal-fired power," said Bhadiy Dindinger, a member of the INSAF environmental group in India. "It has a huge impact on health damage and climate change."

http://www.eca-watch.org/dodgy-deals/asian-environmental-groups-strongly-crlitic...


What's New August 2018

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.

  • Friends of the Earth warns against Trump's Ex-Im Bank nominee
  • European Ombudsman calls for greater transparency of export credit agencies
  • Ilisu Dam: Dutch NCP concludes first-ever OECD Guidelines case on cultural rights
  • ECAs in international politics - US and Germany vs Turkey
  • US, Australia and Japan to Invest in Asia to counter China
  • South Africa to co-chair Forum on China-Africa Cooperation (FOCAC) Summit
  • Indian Export Opportunities from US-China Trade Differences Need Export Credit Support
  • Trump’s sanctions halt trade credit insurers’ return to Iran
  • Danish ECA freezes new guarantees to Turkey over lira crisis
  • Adani's coal mining project in Australia may hinge on court
  • ECAs flock to finance huge Peruvian mine project
  • France's CIFAL ready to help Uzbekistan develop nuclear energy
  • Russian ECA financed weapons in Armenia risk escalation of hostilities
  • UKEF backs country’s largest export deal with Israel
  • Trinidadian form minister awaits Australian response re naval vessel purchase funded by EFIC

Friends of the Earth warns against Trump's Ex-Im Bank nominee

(Washington Examiner, Washington, 23 August 2018) The Senate Banking Committee on Thursday voted 25-0 in favor of Kimberly Reed to lead the U.S. Export-Import Bank, the U.S. export credit agency, which the group Friends of the Earth fears could be a move to subsidize fossil fuel projects around the world. The environmental group warns that billions of dollars in federal subsidies could be released once Trump's nominee is seated, as 13 fossil fuel projects are still pending at the bank. “There are serious concerns that Ex-Im under Reed will return to its past practice of supporting projects that damage the global climate, harm community health, violate human rights and hasten corruption,” said Kate DeAngelis, senior international policy analyst at Friends of the Earth, after the vote.

https://www.washingtonexaminer.com/policy/energy/friends-of-the-earth-warns-agai...


European Ombudsman calls for greater transparency of export credit agencies

(Bankwatch, Prague, 9 July 2018)  The European Ombudsman has sided with the civil society demanding the European Commission to improve its oversight of the EU Export Credit Agencies (ECAs). The decision upholds an earlier ruling that required the Commission to ensure better compliance of these financial institutions with the EU law.

https://bankwatch.org/blog/ombudsman-calls-for-greater-transparency-of-export-cr...


Ilisu Dam: Dutch NCP concludes first-ever OECD Guidelines case on cultural rights

(OECD Watch, Amsterdam, 20 August 2018) NCP finds company failed to do due diligence and breached the Guidelines at Turkey's Ilisu mega-dam. On 20 August 2018, the Dutch NCP released its final statement on the case of FIVAS et al v. Bresser, the first OECD Guidelines case filed on the subject of cultural rights as human rights. The statement determines Bresser “has not fully met the expectations and satisfied the due diligence criteria of the OECD Guidelines”. In July 2017, Fivas helped Turkish communities file a complaint with the Dutch NCP against Bresser, an SME that performs foundation relocation projects. The Ilisu Dam was the first ever project to have export credit guarantees from European governments withdrawn after the guarantees had already been agreed. ECA Watch members campaigned hard to make this happen.

https://mailchi.mp/7d9c602b92e3/case-alert-new-oecd-guidelines-complaint-against...


ECAs in international politics - US and Germany vs Turkey

(ECA Watch, Ottawa, 28 August 2018) When President Trump agreed to press Israel to release a Turkish prisoner in exchange for Turkey's release of an American Christian pastor, Israel complied but Turkey didn't, resulting in a crippling increase in US tarifs on Turkey, including threats of possible export credit sanctions. In a similar case in July 2018, a German journalist arrested in Turkey was released when Germany, Turkey’s biggest trading partner, lifted export credit guarantee sanctions implemented a year earlier to protest the arrests and the ongoing Turkish state of emergency (OHAL). When faced with the prospect of losing export credits and a project to update Turkey's German-made Leopard tanks, Erdoğan changed course and freed Die Welt correspondent DenizYücel without a trial. Turkey had originally asked the US release a Turkish banker convicted of helping Iran avoid US sanctions as well as to waive U.S. government fines totaling billions of dollars against Turkey's state owned Halkbank over violations of US sanctions on Iran.




US, Australia and Japan to Invest in Asia to counter China

(NASDAQ, New York, 3 August 2018) The United States, Japan and Australia are collaborating to form an alliance that will aim to finance infrastructure projects across Asia. The partnership is a move to lower China's influence on the Indo-Pacific region through the Chinese government's Belt and Road initiative. A 30 July joint statement by U.S., Australian and Japanese official investment, finance and export-credit bodies noted that: "The United States, Japan, and Australia have formed a trilateral partnership to mobilise investment in projects that drive economic growth, create opportunities, and foster a free, open, inclusive and prosperous Indo-Pacific."

https://www.nasdaq.com/help/contact-information.aspx


South Africa to co-chair Forum on China-Africa Cooperation (FOCAC) Summit

(Devdiscourse, Haryana India, 27 August 2018) President Cyril Ramaphosa is next week set to travel to Beijing, where he will co-chair the Forum on China-Africa Cooperation (FOCAC) Summit. The gathering is set to put infrastructure and industrial development at center stage. “These areas are aimed at addressing the three bottlenecks in Africa, as identified by China and Africa, which are hampering Africa’s development, namely, inadequate infrastructure; lack of professional and skilled personnel and a funding shortage. To facilitate the implementation of these measures, China announced the provision of US$60 billion for funding support, which includes US$5 billion for grants and zero-interest loans and US$35 billion for concessional loans and export credit and US$5 billion for Technical and Industrial Project Funding. To build the China-Africa comprehensive strategic and cooperative partnership, China committed to implementing 10 cooperation plans with Africa, namely in the areas of industrialization, agricultural modernization, infrastructure, financial services, green development, trade and investment facilitation, poverty reduction and public welfare, public health, people-to-people exchanges, and peace and security. To facilitate the implementation of these measures, China announced the provision of US$60 billion for funding support, which includes US$5 billion for grants and zero-interest loans and US$35 billion for concessional loans and export credit and US$5 billion for Technical and Industrial Project Funding.

https://www.devdiscourse.com/Article/137366-south-africa-to-co-chair-forum-on-ch...


Indian Export Opportunities from US-China Trade Differences Need Export Credit Support

(Business Standard, New Delhi, 7 August 2018) India can focus on numerous goods for expanding its exports to the US and China markets following the hike in duties by both countries on imports from each other, said the Confederation of Indian Industry (CII). With the US imposing additional duty of 25% on imports worth $34 billion from China, certain Indian products may become more competitive, according to CII. It was noted that Indian companies require better access to export credit to intensify the export effort.

https://www.business-standard.com/article/news-cm/us-china-trade-differences-to-...


Trump’s sanctions halt trade credit insurers’ return to Iran

(Global Trade Review, London, 18 August 2018) Two weeks after renewed US sanctions against Iran, it appears trade credit insurers are winding down the little business they had reinstated in the country since 2016. Arash Shahraini, board member and deputy CEO of the Export Guarantee Fund of Iran (EGFI) stated that "After the announcement of the US sanctions, all private credit insurers who had some interests in dealing with the US stopped their cover on Iran. Now as far as I know, only export credit agencies (ECAs) continue to give cover to Iran.” Technically speaking, cover cannot be cancelled retrospectively, so companies should be able to use the insurance they have already subscribed to in case of default due to the re-implementation of sanctions. Iranian companies that have made use of private insurance will now have to turn to other options, such as ECAs. “Right now, I am in the process of negotiations for some transactions and projects for getting cover from ECAs for Iranian projects and transactions,” noted Katayoon Valizadeh, a senior consultant in credit insurance and risk management in Tehran.

https://www.gtreview.com/news/mena/trumps-sanctions-halt-trade-credit-insurers-r...


Danish ECA freezes new guarantees to Turkey over lira crisis

(Global Trade Review, London, 15 August 2018) The Danish export credit agency EKF has frozen all new guarantees to Turkey, as concerns about the country’s economic health continue to mount. The Turkish lira has lost more than 45% of its value this year and continued its plunge this week amid a growing geopolitical storm between Turkey and the US.

https://www.gtreview.com/news/europe/danish-government-freezes-new-guarantees-to...


Adani's coal mining project in Australia may hinge on court

(Business Standard, New Delhi, 9 August 2018) For the Ahmedabad-headquartered Adani group, the fate of its ambitious coal mine-to-rail project in Australia could hinge on a court case filed by native owners of the land in question, near the Carmichael mine in the province of Queensland. Environment groups and others in opposition have alleged the current ruling party in Australia has helped Adani in getting regulations and clearances for the project, including possible EFIC support. Adani had signed a land agreement with the local authorities now being contested in court by native Wangan and Jagalingou land claimants. Wangan and Jagalingou (W&J) Traditional Owners in the area did not consent to the Carmichael mine. Since 2012, their claim is that group meetings rejected a Land Use Agreement with Adani four times, the latest in December 2017. Five members of the W&J Native Title filed case in the high court on behalf of the claim group in August 2017. Sources said Adani had not been able to tie up any financing for the coal project. Jeyakumar Janakraj, chief executive and country head, Adani Group Australia, told this publication last year that the company was in talks with leading global financers and export credit funds from China and Korea in this regard.

https://www.business-standard.com/article/companies/adani-s-rail-project-in-aust...


ECAs flock to finance huge Peruvian mine project

(Global Trade Review, London, 22 August 2018) Peruvian miner Minsur has secured US$900mn in project financing for its Mina Justa copper mine. The lenders are: BBVA Continental, BBVA, Banco de Crédito del Perú, Crédit Agricole, Export Development Canada (EDC), Export Finance and Insurance Corporation (EFIC, the Australian ECA), ING, KfW Ipex-Bank, Natixis, SG Americas Securities, Société Générale and the Export Import Bank of Korea (Kexim). Mina Justa is set to produce 100,000 tonnes of copper a year when it comes online in 2020. Total project cost is expected to run to US$1.77bn, with Minsur providing the rest of the capital. The mine will be located in the district of Marcona, in Nazca province, in the Ica region of Peru.

https://www.gtreview.com/news/americas/lenders-flock-to-huge-peruvian-project-fi...


France's CIFAL ready to help Uzbekistan develop nuclear energy

(Trend News Agency, Baku, 24 August 2018) French CIFAL company is ready to help Uzbekistan in the development of nuclear energy noting they are ready to provide their technological solutions and share experience to train specialists of Uzbekistan in the field of nuclear energy. CIFAL plans to support the Uzbekistan's Agency for the Development of Nuclear Energy "Uzatom" in the implementation of technical, commercial and financial negotiations with the Russian State Atomic Energy Corporation "Rosatom" and also take part in the solution of issues of financing of the project in coordination with the Uzbek and Russian sides. The Russian side proposes to build in Uzbekistan a station consisting of two modern blocks of pressurized-water reactors VVER-1200 of "3+" generation. The project for the construction of a similar station, which Rosatom is building in Bangladesh, is estimated at about $13 billion, of which $11.3 billion are provided by Russia as an officially supported export credit.

https://menafn.com/1097337844/French-CIFAL-ready-to-help-Uzbekistan-develop-nucl...


Russian ECA financed weapons in Armenia risk escalation of hostilities

(VESTNIK, Moscow, 13 August 2018) Arms supplies on credit are a usual practice. Almost all countries involved in the sphere of military-technical cooperation practice it. The reasons for this may be different, but usually they are of purely political nature: this is the way a country that provides a state export credit for the purchase of weapons produced in the same country indicates that the recipient country is considered as if not an ally, then a very close partner, friend, the Independent Military Review writes. That's who the Republic of Armenia (RA) was for Russia for a long time. Yerevan received both political and military support (including the Russian military base) and economic preferences from Moscow. The Kremlin's position on Nagorno-Karabakh was also quite clear. That is why no one was surprised when in 2015 the Russian Federation agreed to provide the RA with a $200 million loan to buy weapons. Last month, deliveries under this loan agreement, which entered into force in February 2016, were completed. In recent years, the balance of forces in the South Caucasus has been violated because of the growing military power of Azerbaijan, which threatened the resumption of the conflict in Nagorno-Karabakh. Arms supplies from Russia will help to slow down the escalation of the conflict, bringing the military advantage of one of the parties to an approximate equality. But not everyone is happy to see the military-technical cooperation of Moscow and Yerevan. According to a Worldwide Threats Assessment report of the director of US National Intelligence Daniel Coats, "both sides' reluctance to compromise, mounting domestic pressures, Azerbaijan's steady military modernization, and Armenia's acquisition of new Russian equipment sustain the risk of large-scale hostilities in 2018."

http://vestnikkavkaza.net/analysis/Russian-weapons-in-Armenia.html


UKEF backs country’s largest export deal with Israel

(Global Trade Review, London, 24 August 2018) UK Export Finance (UKEF), the country’s export credit agency, is providing a guarantee for a US$125mn loan from Citi to El Al Israel Airlines to finance their purchase of one Rolls-Royce-powered Boeing 787 aircraft. The deal is part of Rolls-Royce’s contract to supply engines for 16 such aircraft for the Israeli airline. According to UK international trade secretary Liam Fox, this contract is “the largest single export deal the UK has had with Israel, and a marker of the strength of the trade relationship between the two countries”. The announcement comes days after the UK government launched its new export strategy, which lays the foundation for how the government plans to support exporters in the years ahead.

https://www.gtreview.com/news/europe/ukef-backs-countrys-largest-export-deal-wit...


Trinidadian former minister awaits Australian response re naval vessel purchase funded by EFIC

(Trinidad & Tobago Newsday, Port of Spain, 15 August 2018) Former minister Devant Maharaj today said he is still waiting for a reply from the Australian government about concerns he has about alleged corruption in the procurement of two naval vessels for the Coast Guard. Maharaj told Newsday he sent correspondence to Australian Attorney General Christian Porter outlining his concerns by e-mail and a hard copy of his letter was delivered to the Australian High Commission in St Clair as well. Maharaj insisted six fast patrol boats acquired from Austalia under the former administration were not suited for TT's waters. Trinidad's National Security Minister Stuart Young said the purchase of 12 Damen naval vessels by the former government prior to the September 2015 general elections is now under international criminal investigation, and attacked Maharaj's allegations of corruption. Funding for the procurement of the vessels was to come through the Export Credit Agency of Australia.

https://newsday.co.tt/2018/08/15/devant-waits-for-australia/


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