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What's New! Vol.
7, No. 8
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August 2008 - What's New! Indices - 2005 2006 2007 2008
"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
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1) |
OECD hits UK hard on anti-corruption |
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2) |
BTC pipeline in Georgia shows need for greater ECA diligence |
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3) |
Could the OECD's Fall ECA/civil society consultation be meaningful? |
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4) |
AECL cites US/French ECA subsidies in plea for Ontario nuclear deal |
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5) |
Failure of WTO's Doha negotiations leaves ECA subsidies in effect |
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Escalating sanctions are squeezing Iran’s economy says Australian ECA |
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ECAs interested in PNG LNG project |
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8) |
Dutch credit debt swaps increase Indonesia risk profile |
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View Back Issues of What's New |
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| 1. |
OECD hits UK hard on anti-corruption |
| (Financial Times, London, 17 August 2008) The OECD's Anti-bribery Working Group has strongly criticized the UK for its failure to tackle corporate bribery, a move largely spurred by Britain's closure of an investigation into alleged bribery involving a BAE Systems export credit agency supported arms sale to Saudi Arabia. |
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| 2. |
BTC pipeline in Georgia shows need for greater ECA diligence (PDF) |
| (The Corner House, Dorset, 26 August 2008) The Corner House has written to the UK Export Credits Department, raising questions about their due diligence on the conflict risks of the BTC pipeline, which in recent weeks has been subject to bombing by the PKK in Turkey and an airstrike by the Russians in Georgia. The letter cites documents which show that concerns were raised by the UK government that the pipeline would not be economic without oil from Kazakhstan, which, in the wake of the recent conflicts, has said it might stop using the pipeline. Other documents cited suggest that the ECGD never adequately considered the risk that Russia might react to the BTC pipeline by seeking to re-exert control over Georgia and other ex-Soviet states in the Caucasus region. The Corner House has also written to the National Audit Office requesting an investigation to assess whether the premiums charged by ECGD adequately reflected the conflict risks. Some media coverage of the war in Georgia have highlighted how taxpayer money is wrapped up in the war. |
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| 3 |
Could the OECD's Fall ECA/civil society consultation be meaningful? |
| (ECA Watch, Ottawa, 21 August 2008) ECA Watch has written to the OECD's Export
Credit Secretariat in response to an invitation to participate in an 18
November 2008 consultation meeting between civil society organizations
and ECAs. In its letter, the civil society network explains that it has not yet received feedback from ECAs or the ECG
to concrete proposals made over the past year to improve the format of these consultations so that they include meaningful discussions. Nor has ECA-Watch received a response regarding its proposal for the adoption of a peer review mechanism by the ECG. Barring a
substantive response to these proposals by the ECG or individual ECAs
prior to the 18 November 2008 meeting, ECA Watch respectfully
declines the invitation. |
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AECL cites US/French ECA subsidies in plea for Ontario nuclear deal |
| (Reuters, Ottawa, 7 August 2008) Atomic Energy of Canada Ltd. (AECL) and Canadian engineering giant SNC-Lavalin have requested billions of dollars in Canadian government subsidies for two Ontario nuclear power generators, citing competition from Westinghouse and Areva of the USA and France respectively, which they said had access to government-backed
financing from export credit agencies. |
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Failure of WTO's Doha negotiations leaves ECA subsidies in effect |
| (IPP Media, Dars Es Salaam, 12 August 2008) The Doha Round trade negotiations which failed at the end of July, included provisions to eliminate export subsidies by 2013, including subsidies hidden in export credits. Trade gains would have increased developing world incomes by less than a penny per person per day, while giving Northern consumers 25 times as much, according to World Bank data analysed by an Indian research centre.(PDF file) |
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| 6. |
Escalating sanctions are squeezing Iran’s economy says Australian ECA |
| (ferret.com, Chatswood AU, 4 August 2008) The Australian Government’s export credit agency, EFIC , has reported that escalating sanctions are squeezing Iran’s economy, particularly its oil and gas sector. |
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| 7. |
ECAs interested in PNG LNG project |
| (OilVoice, Surrey, 19 August 2008) Oil Search Ltd. of Port Moresby Papua New Guinea claims a strong level of interest from a range of banks and export credit
agencies to be involved in providing debt funding for its PNG liquid natural gas project for which Front End Engineering and Design (FEED) activities began in May. |
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| 8. |
Dutch credit debt swaps increase Indonesia risk profile |
| (ECA Watch, 29 August 2008) Because of Atradius DSB cover for the export of military navy vessels to Indonesia with a value of about €1 billion some years ago, [the legal cover ceiling for Dutch export credit support to Indonesia is only €1.5 billion] many regular Dutch exporters have found it hard to get ECA cover for their exports to Indonesia. The Dutch Government has developed hedging mechanisms to pass the risk off to third parties, allowing increased Dutch exports to Indonesia to receive export credit subsidies. Following last year's pilot of €60 million, additional credit default swaps for an amount of €150 million have been announced. Pilot exposure swaps were earlier conducted with EKF, the Danish ECA and the Dutch State also entered into a number of reinsurance agreements with other parties for part of their exposure on Indonesia. The Dutch Ministry of Finance did not disclose information on which banks they signed contracts with. |
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