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What's New! Vol. 10, No. 9
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1) |
Is lending in the aircraft financing market going down?
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2) |
New appointments for UK ECGD export
advisory panel
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3) |
Australia's Productivity Commission to launch inquiry into
EFIC
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4) |
India's seafood exports under strain
as export credit costs rise
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5) |
UK's official export credit agency is back 'on cover' for
Libya
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6) |
Islamic export credit, political risk insurance boost for
ICIEC
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7) |
India has doubled its lines of credit (LOC)
to Africa
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8) |
Indian companies turn to Chinese loans to cuts export costs
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9)
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Dutch development and export credit money wasted on harbour in Guatemala
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10)
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European legislation forces export credit agencies to be more transparent
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View Back Issues of What's New |
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| 1. |
Is lending in the aircraft financing market going down?
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| (Bloomberg, Paris, 22 September 2011) EADS
sought to assure investors that lenders and leasing companies
aren’t retreating from the aircraft financing market, as the
parent of Airbus SAS tumbled the most in five weeks... EADS
dropped as much as 7.5 percent in Paris trading after Les Echos
reported BNP Paribas (BNP)
SA and Societe Generale (GLE)
have stopped lending to aircraft purchasers because of
difficulties in obtaining dollar refinancing. Societe
Generale, France’s
3rd bank by assets, said Sept. 12 that it may reduce
its business to help finance aircraft and ships... “French
banks contribute 15-20 % maximum to
financing commercial aircraft, and of that portion, a
significant part is backed by export credit
finance, an area where U.S. banks could easily step in” to
fill the breach, the managing director of DVB Bank SE (DVB), amongst the biggest aircraft financiers in Europe, said
in an interview today. [While the OECD has not published
sectoral data for official export credits since their 12 January 2007 release of 2005
statistics, commercial aircraft finance was then a leading
official export credit sector - 29% of ECA reported long-term
credits and 37% of 717 reported projects.]
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| 2. |
New appointments for UK ECGD export
advisory panel
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(7th Space, London, 8 September 2011) The Export Guarantees Advisory
Council (EGAC) advises Ministers through ECGD, the UK´s export credit
agency, principally on policies relating to environmental, social and
human rights issues. EGAC´s new members are Alexandra Elson, Chris
Fitzpatrick and Neil Holt. There are no civil society members of EGAC, only corporate representatives or lawyers, and one academic .
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| 3. |
Australia's Productivity Commission to launch inquiry into
EFIC
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(EFIC, Canberra, 1 September 2011) The Minister for Trade has announced
an inquiry by the Productivity Commission into Australia's export
credit arrangements. In undertaking the inquiry, the Productivity
Commission will consider arrangements for the provision of export credit
through the Export Finance and Insurance Corporation (EFIC). EFIC
is reviewed on a regular basis with the last review taking place in
2006. Over the course of the inquiry, the Commission will consult widely
with government agencies and with private sector organisations, relevant
professional and interested parties.
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| 4. |
India's seafood exports under strain as export credit costs rise
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| (Hindu Business Line, Kochi, 5 September 2011) Seafood exports from India are under strain
as export costs continue to mount. The hike in interest rate
of export credit is costing the seafood industry dearly, said
Mr Anwar Hashim, President of the Seafood Exporters
Association of India (SEAI). The interest rate of export
credit which was 9 per cent in April 2010 is now almost 12 per
cent, an increase of 30 per cent.
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| 5. |
UK's official export credit agency is back 'on cover' for
Libya
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| (7th Space, London, 27 September 2011) "Now that an internationally recognised regime has been
established and stability is returning, I am pleased to announce
today that ECGD will be resuming cover immediately and will make
up to $250m in support available. This support will help British
businesses play their role in assisting the people of Libya
build the future they want and richly deserve.".... "I very much
hope that ECGD's lead in resuming cover will have the added
benefit of signalling to international private investors and
banks that creditworthiness has been restored. I hope this
signal of the UK's confidence will encourage banks and other
lenders to support the new regime."
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| 6. |
Islamic export credit, political risk insurance boost for ICIEC
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| (iStockAnalyst, Jeddah, 26 September 2011) One of the important issues on the agenda of the
second annual meeting of the Aman Union, the organization of
investment and export credit agencies in the Arab and Islamic World to be held
on Oct. 4-5 in Istanbul under the aegis of the Turk Eximbank,
are the challenges facing the export credit insurance industry especially insuring risks in post-conflict countries
and those undergoing economic and political transformation....
Indeed the corporation confirms that opportunities for export
credit, investment insurance and retakaful business are on the
rise as a result of the recent political turmoil in the
region.
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| 7. |
India has doubled its lines of credit (LOC)
to Africa
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| (Pambazuka,
Nairobi, 19 September 2011) From most indications, India and China, two
leading emerging economies in the world, are competing with each other,
as well as Africa’s traditional western trading partners, to build a
stronger relationship with Africa... Of note is the reality that India
cannot match China’s ‘deep pockets’ when it comes to resource
diplomacy, state backing for private sector investments, and the
provision of credit and aid to African countries... However, it is hard
to ignore the similarities between the African strategies of India and
China. In this regard, India has doubled its lines of credit (LOC)...
India’s competition with China in Africa will serve as an interesting
window on the way in which it affects Indian policy.
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| 8. |
Indian companies turn to Chinese loans to cuts export costs
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| (Bloomberg, 21 September 2011) Indian companies may turn to Hong Kong’s yuan bond market
to raise funds at 40% the cost of top-rated home companies
after India eased borrowing rules....
Rural Electrification Corp., India’s state-controlled lender
to power projects, has applied to Sinosure, for a
guarantee on a $350 million loan, Chairman Hari Das Khunteta
said in an interview on Sept. 16.... Rural Electrification
will borrow in yuan “if the terms are good and taking into
account interest rates,” Khunteta said..... China, which was
the biggest contributor to world growth last year, according
to the International
Monetary Fund, is promoting the yuan’s use in global
trade and finance.... Annual trade between the world’s most
populous countries will touch $60 billion in 2011.
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| 9. |
Dutch development and export credit money wasted on harbour in Guatemala |
(VK-NL,
Amsterdam, 8 September 2011) A Dutch project involving millions of
Euros in aid and ECA support to modernize the harbor of a village in
Guatemala resulted in failure. Champerico, a village at the Pacific
coast, now has a silted harbor from which no boat can enter or leave. [Original article in Dutch - ECA Watch translation]
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| 10. |
European legislation forces export credit agencies to be more transparent
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| (Both
Ends, Amsterdam, 13 September 2011) With an overwhelming majority - 643
votes in favour, 20 against and 9 abstentions - a new law, which forces
European export credit agencies (ECAs) to be more transparent about the
environmental and social effects of transactions supported by ECAs, has
just been approved of in the European Parliament. As of next year, all
ECAs will have to deliver a report about this to the European
Commission and the European Parliament on a yearly basis. European
green MEPs noted that "EU Member States will have to report on how ECAs perform according to EU
global goals and commitments regarding the promotion of democracy and
human rights, and the fight against climate change, on how they include
environmental risks in their interest calculation (environmentally
unsound investment projects might be charged with higher interest rates,
in order to cover their real risks). |
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