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	Overview of the Problems
	Highlight: Russia's Sakhalin II
	Highlight: The BTC Pipeline

What's New! Vol. 9, No. 2

February 2010 - What's New! Indices - 2005 2006 2007 2008 2009 2010

"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

	1)	Legal Challenge Launched of UK Serious Fraud Office's BAE settlement
	2)	Turkey announces restart of Ilisu construction
	3)	Back to square one on nuclear export subsidies from Germany
	4)	European airlines seek end to home market export credit limits
	5)	Revisions proposed to OPIC's environmental, transparency, worker rights and human rights policies
	6)	OECD proposes new sector understanding on export credits for climate change and water projects
	7)	India's ECA monitors export credit risks of European economies in crisis
	8)	EU Plans Massive Sanctions Against Iran
	9)	Credit Insurance: You Want It, But Can You Get It? ECAs Cushion the Blow
	—	View Back Issues of What's New

1.	Legal Challenge Launched of UK Serious Fraud Office's BAE settlement
	(The Cornerhouse, Dorset UK, 12 February 2010) As part of its ongoing efforts to press the UK government to stop turning a blind eye to corrupt activities of British corporations abroad, The Corner House has joined Campaign Against Arms Trade (CAAT) to request a judicial review of a recent controversial plea bargain that would let arms manufacturer BAE Systems off the hook for alleged bribery involving projects, some ECA supported, in several European & African countries.

2.	Turkey announces restart of Ilisu construction
	(ECA Watch Austria, Vienna, 12 February 2010) Turkish prime minister Erdogan announced that construction of the Ilisu dam would soon restart, despite a 3 February 2010 European Parliament resolution which demanded that Ilisu construction stop as part of Turkey's accession negotiations with the EU.

3	Back to square one on nuclear export subsidies from Germany
	(WISE/NIRS Nuclear Monitor, Amsterdam, 29 January 2010) Despite a reluctance to reverse Germany's overall moratorium on nuclear energy development pending May elections in North Rhine-Westphalia, the federal government has signaled the reversal of exclusion criteria for nuclear exports in approving a large Hermes guarantee for Brazil's Angra 3 plant to support Areva NP which is 34% owned by Siemens.


4	European airlines seek end to home market export credit limits
4	(Wall Street Journal, 9 February 2010) Nine carriers from France, Germany, Britain and Spain, the home countries of Airbus, want to rework an agreement between the US and the EU that limits which carriers can benefit from government-backed export financing. This home-market rule forbids airlines from the home countries of Airbus and Boeing from receiving ECA support. Struck between the US & EU in 1986 to level the playing field between Boeing & Airbus the issue has now become a sore point since the global credit crisis hit and commercial rates for jetliner purchases soared. Meanwhile Canada's Bombardier said it appears the agreement is being extended to Canada, a protectionist move by Boeing and Airbus to keep Bombardier's larger upcoming CSeries aircraft, as well as Brazilian, Russian, Japanese and Chinese jets, out of their markets by limiting export credit finance. Five more OECD ECA meetings are planned up to the end of November 2010 to alter the overall aircraft sector understanding reached in 2007.

5	Revisions proposed to OPIC's environmental, transparency, worker rights and human rights policies
5	(OPIC, Washington, January 2010) The Overseas Private Investment Corporation (OPIC) is proposing revisions to its “Environmental Handbook” which covers policy requirements that OPIC applies to projects it supports. These policies are based on statutory requirements found in the Foreign Assistance Act and specific policy commitments made by OPIC with respect to environmental and social policies and procedures. US environmental and civil society organizations will be commenting on the proposed revisions and monitoring their relevance for the policies of the Export-Import Bank and other international ECAs.

6.	OECD proposes new sector understanding on export credits for climate change & water projects
6.	(OECD, Paris, 25 February 2010) The OECD working group on export credits will be discussing a draft new sector understanding on export credits for climate change and water projects in the week of 19 April 2010, and has requested comments from civil society organizations by 26 March 2010.


7.	India's ECA monitors export credit risks of European economies in crisis
7.	(Hindu Business Line, Bangalore, 17 February 2010) The Export Credit Guarantee Corporation (ECGC) of India is monitoring the situation of Euro-zone countries faced with distress. The countries facing sovereign debt stress include Portugal, Italy, Greece and Spain.These four countries together import some $3.5 billion of Indian exports, mostly commodities, engineering goods and textiles. India's official credit risk insurance premiums for these countries should remain unchanged at the current level for the time being, although some private sector general insurers have begun tightening risk premiums to these regions.

8.	EU Plans Massive Sanctions Against Iran
8.	(Spiegel Online, Brussels, 23 February 2010) The EU is preparing tough sanctions against Iran's energy and financial sectors, according to a confidental list of proposals drawn up for EU foreign ministers and obtained by SPIEGEL ONLINE. The measures, aimed at forcing Iran to back down in the nuclear dispute, would have a dramatic impact on the economy and include blocking export credit guarantees that are a routine part of interrnational trade, which would make deliveries to Iran more risky or at least significantly more expensive.

9.	Credit Insurance: You Want It, But Can You Get It? ECAs Cushion the Blow
9.	(World Trade Magazine, Cleveland, 6 February 2010) The unprecedented size of the recession has forced insurers to pare back their coverage limits and even cut off clients completely. Some experts expect up to a 20 percent reduction in capacity during 2010. In the face of dried up credit and scarce insurance, Ex-Im and other ECAs stepped into the breach. Trade credit insurance, until recently a rarely purchased product in the United States, has gone big time - it generated almost $800 million in annual premiums last year in the US market alone. In Europe, an economy of comparable size but with a much more mature insurance market, premiums bring in about $4 billion, with annual growth of about two percent.