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 November 2017

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

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

Email info-at-eca-watch.org

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

  • Brussels Seminar December 4: Transparency and due diligence at Europe’s ECAs
  • OECD, It’s Time for Export Credit Agencies to Stop Funding Fossil Fuels
  • Too Coal-Hearted: Japan and Korea’s Support for Dirty Energy
  • Japanese Groups Strongly Object to JBIC Premature Loan Disbursement, Ingoring Upcoming Community Lawsuit
  • Japanese banks & JIBC back coal links between Japan & Africa
  • May Vies With Trump for Aramco Listing with ECA support
  • Airbus braces for a difficult landing after corruption allegations
  • Great Barrier Reef Pitted Against Coal Jobs in Australia Vote
  • ECAs are stepping up their SME support initiatives.

Brussels Seminar December 4: Transparency and due diligence at Europe’s ECAs

(CEE Bankwatch Network, Prague, 22 November 2017) In 2015-2017 Finance & Trade Watch and CEE Bankwatch Network together with its national partners researched export credit agencies (ECAs) in seven countries of the European Union (Austria, Czech Republic, Croatia, Hungary, Poland, Romania and Slovakia). The results of this research will be presented at a seminar in Brussels on December 4, 2017 at the Leopold Hotel  19:00 - 20:30 followed by a reception.

  • Opening remarks by Heidi Hautala, vice President of the European Parliament
  • Remarks on the position of European Parliament by Anna Záborská, Member of the EP Development Committee
  • Reflections on the issues of EU Member states ECAs by Silvia Gavorníková, EXIMBANKA Slovakia
  • Introduction of the research project by Thomas Wenidoppler, Finance and Trade Watch
  • Issues and Recommendations related to Transparency and Due Diligence of ECAs by Dana Mareková, CEE Bankwatch Network

To participate, register here




OECD, It’s Time for Export Credit Agencies to Stop Funding Fossil Fuels

(Friends of the Earth US, Washington, 14 November 2017) Precisely as the world’s attention is focused on addressing climate devastation at the 23rd United Nations Climate Conference (COP23) in Bonn, Germany, the largest public drivers of fossil fuel financing are meeting a mere 320 miles away in Paris. The irony couldn’t be starker. Representatives of the very same countries singing their own praises in Bonn are fomenting climate disaster from Paris, at a meeting of export credit agencies (ECAs) at the Organization of Cooperation and Development (OECD) Export Credit Group. Export credit agencies (ECAs) — which are bodies funded by taxpayers to support business overseas — are world leaders in public support for climate destruction. While relatively obscure but powerful institutions, ECAs provide government-backed loans, guarantees, insurance, and credits to projects overseas — including many energy projects — in the hopes of boosting their home countries’ exports and creating and maintaining jobs. According to a recent report by Friends of the Earth U.S. and Oil Change International, ECAs fund almost $40 billion worth of fossil fuel projects each year. That is a whopping 12 times more than what they spend on clean energy projects.

https://medium.com/@foe_us/oecd-its-time-for-export-credit-agencies-to-stop-fund...


Too Coal-Hearted: Japan and Korea’s Support for Dirty Energy

(Natural Resources Defense Council, New York, 13 November 2017) Two years ago, OECD countries agreed to place limits on coal finance. Are countries following through on their commitments? The results are mixed. Most governments have stopped financing coal and shifted finance to clean energy projects. The worst actors, Japan and Korea, are continuing to provide billions for coal projects. Continued government financing for international coal projects undermines the Paris Agreement and the prospects of a low-carbon future. To address climate change, governments must shift international public finance toward smarter, sustainable options such as solar and wind power.

https://www.nrdc.org/experts/han-chen/too-coal-hearted-japan-and-koreas-support-...


Japanese Groups Strongly Object to JBIC Premature Loan Disbursement, Ingoring Upcoming Community Lawsuit

(FOE Japan, Tokyo, 14 November 2017) On November 14, The Japan Bank for International Cooperation (JBIC) disbursed the first installment of a loan for the 1000 MW Cirebon coal-fired power plant expansion plan which Marubeni and JERA invested in, known as Cirebon 2. The total loan amount JBIC has signed in the loan agreement is around USD 731 million. However, the validity of the new environment permit, which has only recently been issued, is still in question. The local community and NGO groups, which are opposing the project, are preparing to file an administrative lawsuit next week, demanding the revocation of the new environment permit. This would make it impossible for the Cirebon 2 project to violate the laws of the host country (Indonesia) and the “JBIC Guidelines for Confirmation of Environmental and Social Considerations”. This disrepectful JBIC neglect of the lawsuit by local residents is a repeat of its conclusion of the loan agreement without an adequate EIA. JBIC had a meeting with the local community and NGO groups in Indonesia last October and directly heard their concerns and the judicial risks. Nevertheless, JBIC decided to disburse the loan and just push through with the project ignoring their concerns.

http://www.foejapan.org/en/aid/171114.html


Japanese banks & JIBC back coal links between Japan & Africa

(Global Capital, London, 1 November 2017) Japan Bank for International Cooperation (JBIC) and a syndicate of lenders have provided a $2.73bn loan to finance the construction of a railway and upgrade a port in Mozambique, which will ensure the long term supply of coal to Japan from the African country. JBIC provided $1.03bn of the deal with the rest provided by African Development Bank, Sumitomo Mitsui Banking Corporation (SMBC), Mizuho, Standard Chartered, Nippon Life Insurance Co, MUFG and Sumitomo Mitsui Trust Bank.

http://www.globalcapital.com/article/b15v74t296bqjc/japanese-banks-back-coal-lin...


May Vies With Trump for Aramco Listing with ECA support

(Bloomberg, London, 29 November 2017) U.K. Prime Minister Theresa May said London is “extremely well-placed’’ to win a planned stock exchange listing by Saudi Arabia Oil Co., as she competes against U.S. President Donald Trump for the coveted initial share sale by the world’s largest crude producer. Aramco, worth trillions, is mulling an international sale in addition to a listing on the Saudi exchange. Trump earlier this month tweeted his hope that the Saudis would use a U.S. exchange, before lobbying Saudi King Salman personally on a phone call. The UK government earlier this month agreed to a $2 billion loan guarantee, an unusually large export credit guarantee that’s designed to finance the purchase of British goods, but that also opened May up to the suggestion she was trying to influence the listing decision.

https://www.bloomberg.com/news/articles/2017-11-29/may-vies-with-trump-for-aramc...


Airbus braces for a difficult landing after corruption allegations

(Guardian, London, 5 November 2017) A UK Serious Fraud Office probe into allegedly misleading statements made by Airbus to UK Export Finance, the government department that provides commercial support for major deals has ballooned with further allegations of corruption. The investigation concerns whether Airbus lied to the government about its use of intermediaries. It is understood that Airbus has not received any further support from UKEF since it was informed of the allegations in April last year. Der Spiegel has published a lengthy investigative piece alleging that Europe’s largest aerospace multinational had operated a London slush fund, distributing millions of dollars to accounts held by companies in tax havens. Before the month was out, the firm would reveal to investors that it had reported itself to authorities in the US, this time over potentially breaching regulations on the use of agents to sell sensitive weapons technology.

https://www.theguardian.com/business/2017/nov/04/airbus-year-corporate-confessio...


Great Barrier Reef Pitted Against Coal Jobs in Australia Vote

(ABC, Sydney, 22 November 2017) As the world grapples with the fossil fuel’s role in the future energy mix, Indian bilionaire Guatam Adani's proposed Carmichael coal mine became a defining issue in Australia's Queensland election. An unnamed Adani Mining director was quoted as saying the company is close to securing a deal with Chinese enterprises and export credit agencies to fund both the mine and the rail link, and that Adani wouldn’t need a loan of up to $1 billion from the federal Northern Australian Infrastructure Facility (NAIF) for the rail line. A formal announcement about the financing deal is said to be imminent, but the ABC reports that reliance on funds from Chinese enterprises and export credit agencies could cost Australia jobs associated with the project. Such Chinese interests invariably require that materials for key infrastructure are sourced from China and that effective shifts work out of Australia. Coal and the impact of climate change on Australia's Great Barrier Reef were an issue in the election.

https://www.bloomberg.com/news/articles/2017-11-21/great-barrier-reef-pitched-ag...


ECAs are stepping up their SME support initiatives.

(TXF News, London 23 November 2017) Application processes and ease of access to export cover is improving. But as commercial banks retreat from the SME loans market, more ECA direct lending to SME exporters is a must. Many export credit agencies (ECAs) have been, or are in the process of, stepping up their support for small and medium sized enterprises (SMEs). Finnvera, Credendo, Atradius, Sace, EFIC and Euler Hermes already have streamlined services specifically targeted at SME customers. UKEF has entered into partnerships with five commercial banks – Santander, Barclays, Lloyds, Natwest/RBS, and HSBC – to allow customers to access export finance from commercial bank branches. And Bpifrance hopes to create a one-stop-shop for exporters to increase accessibility. But for all the initiatives, meeting the very different needs of the majority of SMEs remains elusive. For example, UKEF has introduced capacity to provide funding in 40 local currencies. In short – the needs spectrum of SMEs is so broad that ECAs are in the difficult position of trying to 'please all of the people all of the time'.

https://www.txfnews.com//News/Article/6308/tmp


What's New September 2017

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

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

Australia’s export credit agency ordered to ­extend loans to coal ventures

(The Australian, Sydney, 11 September 2017) A ban on government-backed loans for onshore coal and ­resource export operations will be overturned in the “national interest” to help fund billions of dollars in projects that are threatened by the growing reluctance of the major banks to back them. Trade Minister Steve Ciobo will issue a direction this week to Australia’s export credit agency to broaden its mandate and ­extend loans to viable small-to-medium sized onshore resource ventures including coal projects and related infrastructure struggling to secure private-market ­finance... The ANZ bank last week ­declared it was unlikely to finance a proposal to extend the life of AGL’s Liddell coal-fired power station in NSW on environmental grounds despite the warnings from the energy regulator that an energy price and supply crisis was looming due to the lack of reliable baseload power... Efic has reported an increasing number of resource projects ­facing difficulties in obtaining ­private-market finance either ­because of a higher commercial risk profile in the post-mining boom environment but also due to the recent rise in aggressive campaigning by activist groups putting pressure on the banks.

http://www.theaustralian.com.au/business/mining-energy/overturned-loans-ban-offe...


NGOs urge Bank of Tokyo - Mitsubishi to reject Vietnamese coal plant finance

(Friends of the Earth, Washington, 29 September 2017) NGOs have urged the Bank of Tokyo – Mitsubishi UFJ (BTMU) to reject financing for the Long Phu-1 coal plant in Vietnam. In light of its recent accreditation at the Green Climate Fund and the commitment to addressing climate change that this accreditation implies, BTMU’s support for this climate-polluting debacle would be particularly inappropriate and reflect a complete disregard for international climate goals as set out in the Paris Agreement. The US Ex-Im Bank environmental assessment of the project noted that it will produce 63 times the annual 100,000 tonnes of CO2 limit that requires alternative project analyses under Equator Bank Principles, an analysis that the Bank has failed to undertake... Long Phu-1 violates a broad set of environmental and social policies, and an independent expert analysis has demonstrated that the project sponsor’s consulting firm doctored the coal plant’s greenhouse gas emissions estimates to appear compliant with international policies.

https://foe.org/publication/long-phu-1-bank-tokyo-mufj-letter/


Boeing took a foreign firm to task over subsidies. Critics say Boeing gets ECA and other help, too.

(Washington Post, Washington, 28 September 2017) The Commerce Department signaled its intent to impose a 219 percent tariff on Canadian-made jetliners, claiming aircraft maker Bombardier has been unfairly propped up by the Canadian government... But critics of the decision say Boeing itself benefits from its own form of government support, which includes federal contracts and tax breaks from state governments in the United States — a reflection of how U.S. corporations are also dependent on government policies, contracts, decisions and in some cases direct financial inducements in their attempts to remain internationally competitive... Others argue that the U.S. Export-Import Bank indirectly facilitates Boeing’s sales abroad, because the bank’s loans effectively allow foreign airlines to purchase Boeing jets at a discount.

https://www.washingtonpost.com/business/economy/boeing-took-a-foreign-firm-to-ta...


Airbus in talks to settle ECA fraud claims for £1 billion

(Evening Standard, London, 15 September 2017) The Serious Fraud Office and French prosecutors are in close discussion over the terms of a £1 billion-plus settlement for Airbus over corruption allegations. The deal, called a Deferred Prosecution Agreement (DPA), would be the largest ever in Europe, after a year-long investigation into irregular payments by Airbus to intermediaries. The French and German-owned plane maker allegedly used highly-paid fixers around the world to sell A380 planes worth billions to China, Turkey, Indonesia, the United Arab Emirates and others.  Sales to Kazakhstan, Tunisia and Saudi Arabia are being investigated separately. Airbus has admitted “misstatements and omissions relating to information provided in respect of third party consultants in certain applications for export credit finance for Airbus customers”.

https://www.standard.co.uk/business/airbus-in-talks-to-settle-fraud-claims-for-1...


Standard Bank Seeks to ECA funding for $3 billion Ugandan Oil Pipeline

(Bloomberg, Kampala, 15 August 2017) Standard Bank Group Ltd.’s Ugandan unit plans to raise $3 billion for a crude pipeline by the second half of next year as the East African country prepares to start oil production by 2020. Companies will explore raising bank debt or loans from export credit agencies among the options they are considering. The 1445 kilometer pipeline will connect Uganda’s Hoima oilfields in the west to the port of Tanga in neighboring Tanzania.

https://www.bloomberg.com/news/articles/2017-08-15/standard-bank-seeks-to-raise-...


Merkel Mulls Revision of Hermes Support for Ankara as Two Germans Detained in Turkey

(Sputnik, Berlin, 3 September 2017) German Chancellor Angela Merkel said Sunday that Berlin cannot stop the talks on Turkey's accession, but it would impose economic punitive measures in response to arrests of German citizens... She added that Berlin could put pressure on Ankara in terms of its economy, in particular by issuing a stricter warning to those who wanted to visit the country and by introducing restrictions on loans from the European Central Bank, World Bank and Hermes export credit guarantees issued by the German government.

https://sputniknews.com/europe/201709031057053190-merkel-schulz-turkey-migration...


Trump's Ex-Im Nominee Scott Garrett Elegantly Squares The Circular Republican Firing Squad

(Forbes, 17 September 2017) Former Representative Scott Garrett is on record, as reported by Politico, as committed to supporting President Trump’s commitment to having a “‘functional’ export credit agency” while seeing Ex-Im, which provides trade financing to American exporters, "reformed and modernized as outlined by Congress." This is entirely sound.Former Representative Scott Garrett is on record, as reported by Politico, as committed to supporting President Trump’s commitment to having a “‘functional’ export credit agency” while seeing Ex-Im, which provides trade financing to American exporters, "reformed and modernized as outlined by Congress." According to an article in Politico, “In 2015, Garrett said the agency ‘embodies the corruption of the free enterprise system.’” This, of course, endeared him to free market conservatives while offending Ex-Im's beneficiaries. Trump’s budget chief Mick Mulvaney said on CNBC that Trump was now pro-Ex-Im, and the president himself professed his love for Boeing's bank to the Wall Street Journal. The president said he planned to fill two vacancies on the bank's board, which has been effectively paralyzed with three open seats on its five-member board.

https://www.forbes.com/asites/ralphbenko/2017/09/17/president-trumps-nominee-sco...


Iran Receives First Round of Post-Sanctions Finance From European Banks and ECAs

(Financial Tribune, Tehran, 23 September 2017) In what were the first finance deals clinched with cautious European banks after the implementation of the nuclear accord provided sanctions relief in January 2016, Iran signed two agreements worth a total of €1.5 billion ($1.8 billion) with Austria's Oberbank and Denmark's Danske Bank on Thursday. According to Oberbank's CEO, export credit guarantees covering 99% of a project’s volume will be provided by the Oesterreichische Kontrollbank (OeKB), the main Austrian body that issues them.

https://financialtribune.com/articles/economy-business-and-markets/72854/iran-re...


What's New August 2017

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

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

Email info-at-eca-watch.org

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

  • EU Commission underscores the role of ECAs in achieving Paris goals
  • UK undermining climate targets with export credit for fossil fuel projects abroad
  • Dakota Access Pipeline Owner Sues Enviros for Terrorism
  • Germany is reviewing export credit guarantees for German companies doing business with Turkey
  • UK Export Finance Publishes Their Annual Reports and Accounts
  • Iran Has a Long Way to Go to Restore Pre-Sanctions Ties
  • GAO: Status of Ex-Im End-Use Monitoring of Dual-Use Exports
  • Trump gives Ex-Im pick a chance to rescue nomination
  • EDC backed Bombardier sale to Zuma allies accused of corruption
  • Massive Nigerian investments coming with ECA and local financing

EU Commission underscores the role of ECAs in achieving Paris goals

(ECA Watch & Both ENDS, Amsterdam, 24 August 2017) In response to a European Greens Parliamentary question, Cecilia Malmström, European Commissioner for Trade, replied on behalf of the Commission that: "While in the understanding of the Commission the Paris Agreement does not directly address the export credit activities of the Member States, its core objectives should also be duly taken into account in this area [i.e. ECAs] like in all areas of government activity." The EC rightly recalls that the Coal-Fired Electricity Generation Projects Sector Understanding (CFSU) was a political contribution of the OECD Export Credit Group (ECG) to the Paris Agreement on climate action. However, even before closing the negotiations on the CFSU the International Energy Agency stated that, in order to keep global temperature rise below 2 degrees Celsius, new coal-fired power plants as well as at least two thirds of the existing stock should be closed by 2035. As a typical coal fired power plant has a life span of 30-40 years, the rationale of ECA support for all new coal-fired power plant thus is questionable. Last June, Both ENDS published a report that shows that 2/3 of the insured value of projects supported by the Dutch export credit agency, i.e. € 7.3 billion between 2012 & 2015, was for the fossil fuel sector. ADSB’s support for renewable energy projects in this period was only 1% of the insured value for energy-supporting projects. Overall OECD ECA data shows that between 2005 & 2014 38% of non renewable electric power generation projects worth US$35 billion (5.6% of total OECD ECA business) went to coal, 42% to Natural Gas and 17% to oil/diesel - i.e 97% to fossil fuels. Renewable electric power projects in that period were worth US$19.5 billion or 3.1% of OECD ECA business.  This underscores the need for all OECD governments to review whether and how publicly backed ECAs effectively contribute to the Paris Agreement goals.​




UK undermining climate targets with export credit for fossil fuel projects abroad

(The Actuary, London, 23 August 2017) Some 99.4% of the energy support given to foreign countries between 2010 and 2014 by the government department UK Export finance (UKEF) went towards fossil fuel projects, according to new research. This is done through helping UK firms invest overseas by providing guarantees, insurance and reinsurance against loss, acting as the country’s export credit agency. The catholic charity CAFOD, which commissioned the research, argues that this is undermining progress made by other departments in tackling climate change, as well as international targets set out in the Paris Agreement.

http://www.theactuary.com/news/2017/08/uk-undermining-climate-change-targets-by-...


Dakota Access Pipeline Owner Sues Enviros for Terrorism

(BankTrack, Nijmegen, 22 August 2017) BankTrack has taken note of the outrageous allegations in the lawsuit that ETP/ETE has filed against BankTrack, Greenpeace International, Greenpeace Inc., Greenpeace Fund, Inc., Earth First!, and other organizations and individuals that together opposed the Dakota Access Pipeline Project. BankTrack vehemently rejects all accusations brought forward by ETP/ETE. BankTrack considers the lawsuit an attempt of ETP/ETE to silence civil society organisations, and to curb their crucial role in helping to foster business conduct globally that protects the environment, recognises the rights and interests of all stakeholders, and respects human rights. This attempt is bound to fail.

https://www.banktrack.org/news/banktrack_sued_by_etpete_for_campaigning_against_...


Germany is reviewing export credit guarantees for German companies doing business with Turkey

(Spiegel, Ankara, 1 August 2017) As Germany and Turkey struggle with the increasingly strained state of their relationship, Turkish Deputy Prime Minister Mehmet Simsek stresses the two countries' longstanding friendship in an interview with DER SPIEGEL. He also says it is Ankara's duty to rid the state of terrorist elements. The German government has announced a change of course in its policy towards Turkey. For a start, it will be reviewing export credit guarantees for German companies doing business with Turkey. Simsek noted that "Germany is the leader of the EU. We take what Germany says seriously. But the reaction of the German government clearly appears to be based on false information." Turkish authorities gave Germany's Federal Criminal Police Office (BKA) a list of nearly 700 companies that supposedly support terrorism, including Daimler and BASF.

http://www.spiegel.de/international/europe/interview-with-turkish-deputy-prime-m...


UK Export Finance Publishes Their Annual Reports and Accounts

(Manufacturing & Engineeing Magazine, London, 3 August 2017) UK Export Finance, or UKEF, the Government and UK export credit agency has released a report for their transactions of the past year. The published material shows that the Government supported around £458 million of sales overseas for manufacturers. According to the report and figures that have been published, the UKEF provided support to the value of £3 billion for exports from UK manufacturers. The figures show that 79% of the companies that have benefitted from this support over the course of the 2016-17 year were small and medium sized enterprises. The UKEF supported companies by offering finance and insurance which according to the figures released, has allowed 221 companies the opportunity to export their goods to 63 different countries around the world. The most recent OECD cash flow statistics for most OECD ECAs is for 2015 and the OECD breakdown of ECA sectoral activities is a series of very broad stroke graphs covering the entire period from 2005 to 2014.

http://www.memuk.org/business/government/uk-export-finance-published-annual-repo...


Iran Has a Long Way to Go to Restore Pre-Sanctions Ties

(Financial Tribune, Tehran, 14 August 2017) Trade with Italy is being restored slower than expected following the removal of international sanctions against Iran over its nuclear program, reads an opinion piece written by Iranian co-chair of Iran-Italy Chamber of Commerce in the news portal of Tehran Chamber of Commerce, Industries, Mines and Agriculture. In addition, Iran Aseman Airlines says business sources have informed it that undecided roles inside the US Treasury Department have delayed the issuance of licenses for the sales of jets the airline has ordered from global planemakers... The airline said in June that it expected Treasury permits to come as soon as a few weeks. However, the licenses for this order, as well as others whose agreements have been signed or are soon to be signed with Boeing, Airbus and other global aircraft manufacturers are still awaiting a go-ahead by the US. Meanwwhile the Swedish-Iranian Chamber of Trade and Commerce is organizing the First Nordic Iranian Business Summit and Expo in Stockholm. The summit is scheduled for November 20-21, 2017, and the expo for February 16-18, 2018, according to the events' website. Hosting companies and delegations from Sweden, Norway, Finland, Denmark and other European countries as well as Iran, the events are aimed at introducing investment opportunities in Iran's infrastructure, ICT, mining & steel, health & pharmaceuticals, banking & finance, environment and energy.

https://financialtribune.com/articles/economy-domestic-economy/70261/italy-has-l...


GAO: Status of Ex-Im End-Use Monitoring of Dual-Use Exports

(GAO, Washington, 29 August 2017) Every year, the Government Aaccountability Office (GAO) reports on the Export-Import Bank, which helps finance U.S. companies' exports. The Bank may not finance defense goods and services, but it can finance exports that have both civilian and military uses (dual use). The Bank monitors the use of these exports to ensure that they are used mostly for civilian purposes. This year, the Bank determined that dual-use exports were in compliance with this policy. However, it made its determination about satellites sold to the Mexican government before receiving all required information. It was also late completing its determination about construction equipment sold to the Cameroon military. The full report is available here. (pdf)

http://www.gao.gov/products/GAO-17-730R


Trump gives Ex-Im pick a chance to rescue nomination

(Politico, Washington, 2 August 2017) President Donald Trump is giving former Rep. Scott Garrett a chance to save his nomination to lead the Export-Import Bank just weeks after the president privately questioned the appointment amid intense pushback from business groups. The New Jersey Republican’s confirmation has been in doubt for months amid concern about his record in Congress, where he led efforts to try to kill the bank and took positions on LGBT issues that unnerved his corporate backers. An administration official said Trump has “given Garrett an opportunity” to try to prove he can secure enough votes in the Senate. The president has underscored his support for Garrett in conversations with conservative lawmakers, a second administration official said. “He’s looking to get a reformer in there,” the second official said, adding that Trump hopes Garrett can change the agency. The administration itself is developing a plan to make sweeping changes to the bank, officials said. But it's unclear when they will be unveiled publicly.

http://www.politico.com/story/2017/08/02/trump-import-export-garrett-241270


EDC backed Bombardier sale to Zuma allies accused of corruption

(Globe & Mail, Johannesburg, 3 August 2017) The Canadian government's export agency gave $41-million (U.S.) in financing to help Bombardier Inc. sell a luxury jet to the controversial tycoons at the heart of a South African scandal over alleged high-level corruption, leaked e-mails show. Export Development Canada, a Crown corporation, provided the money to a company owned by the Gupta family to help it buy a $52-million Global 6000 jet from Bombardier, the e-mails show. The powerful Gupta family, which has close connections to South African President Jacob Zuma and a business partnership with the President's son, is embroiled in an escalating scandal over widespread allegations of corruption and political influence. The scandal has forced Mr. Zuma to face a non-confidence vote in Parliament on Aug. 8. Critics are asking how the $41-million (U.S.) financing deal was authorized by Export Development Canada, since the borrowers – the politically powerful Gupta family of South Africa – have been surrounded by corruption allegations and investigations for the past seven years. But EDC says it cannot explain anything about the transaction.

https://beta.theglobeandmail.com/news/world/canada-financed-sale-of-bombardier-j...


Massive Nigerian investments coming with ECA and local financing

(African Business Magazine, London, 4 August 2017) Nigeria's Dangote Industries conglomerate has announced massive plans to expand into oil refining as well as large-scale agro processing with financing from local banks and the Central Bank of Nigeria providing working capital finance and own equity and export credit agencies financing equipment – sugar mills, coal generation power plant, ethanol distillery, paddy parboiling equipment, rice milling, polishing & sorting equipment, rice husk power plant, silos, etc.

http://africanbusinessmagazine.com/interviews/massive-investments-agriculture-oi...


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