Index for January 2011

Volume 10, Issue 1

  • (Jubilee Debt, London, 29 January 2011) Jubilee Debt Campaign's new report on the Export Guarantee Department exposes a history of backing projects by large corporations in a handful of controversial sectors which have led to human rights abuses, environmental destruction and corruption in the developing world, and often failed to deliver even on their stated aims. Over £2 billion of ‘toxic debts’ from failed UK exports make up 96% of Third World debt to the UK.
  • Aircraft financing to emerge from the gloom in 2011

    A. The export credit debate explained
      A. The export credit debate explained
    (Flight Global, Sutton UK, 21 January 2011) After much debate last year, new export credit terms have been agreed that could impact delivery financing. But there is still some uncertainty if or when these new rules will take effect, write Laura Mueller and Victoria Moores in London.
      B. Airbus sets records and expects more export credit in 2011
    (Air Finance Journal, London, 17 January 2011) The aircraft manufacturer said in a press conference that it expects export credit to support 30% of its deliveries in 2011 after delivering a record number of aircraft last year.
      C. ECAs stepped in to replace commerical banks
    (Flight Global, Sutton UK, 27 January 2011) “Many banks closed down their aircraft financing departments,â€ Ryanair chief f inancial officer Howard Millar says. “There was a lot less credit available in the market, which meant that the cost of financing rose between 2008 and 2010.â€ Export credit agencies stepped in to support the flow of new deliveries, causing their share of the market to rocket from 15% to 30% in terms of value. “This was massive and has never been seen before,â€ said Bertrand Grabowski from the board of managing directors at DVB Bank.
      D. EMBRAER gets first Brazilian export credit guarantee with foreign bank
    (Logistics Week, Mumbai, 28 January 2011) An EMBRAER 190 jet was delivered to Saudi Arabia’s budget airline nasair, last December, with Natixis Transport Finance acting as the Mandated Lead Arranger of this first aircraft financed by the structure. This is the first guaranteed (“pure coverâ€) Brazilian export credit transaction signed with a foreign commercial bank.
      E. OECD export credit fees to rise in February
    (Air Finance Journal, London, 3 January 2011) The Organisation for Economic Cooperation and Development (OECD) says export credit fees will be closer to market rates under the proposed new terms for state financed exports of commercial aircraft to take effect in February. The Organisation for Economic Cooperation and Development (OECD) says export credit fees will be closer to market rates under the proposed new terms for state financed exports of commercial aircraft to take effect in February.
  • Chinese export credits push international competition and controversy


      A. More Western nations match China's financing strategy to win contracts
    (Washington Post, Washington, 12 January 2011) When General Electric approached the U.S. Export-Import Bank in 2009 wanting to sell 150 locomotives for $477 million to Pakistan, there was a sense of futility. GE had already lost an earlier bid to a Chinese firm. But in a case that underscores a significant shift in how the United States and the rest of the developed world are dealing with the challenge of China's economic might, the U.S. Ex-Im Bank decided to fight back.
      B. EU prepares to challenge China export credits
    (Reuters, Brussels, 13 January 2011) European trade officials have requested industry data that could allow the European Union to challenge China over cheap credit to Chinese firms, according to EU officials and correspondence seen by Reuters.
      C. Has China's export financing met it's match?
    (China in Africa, 14 January 2011) A fascinating new development in the dry area of export financing: we learn that for the first time, the US Eximbank has matched China Eximbank's terms for export financing.
      D. Is there a catch in Chinese loan to Nigerian refineries?
    (New Age, Midrand SA, January 2011) The Nigerian National Petroleum Corporation (NNPC) has signed a $28.5bn memorandum of understanding with the China State Construction Engineering Corporation (CSCEC). The capital outlay is understood to be financed by a consortium of Chinese banks, backed by the China Export and Credit Insurance Corporation (Sinosure). For Nigeria, importing 85% or $10bn worth of refined oil annually, the proposal for three greenfield refineries and a petroleum complex, is the difference between freedom and dependence. But is there a catch?
      E. More cooperation between Chinese and European banks
    (BBVA and the Chinese Development Bank signed a cooperation agreement earlier in January this yea which seeks to establish a cooperation framework for operations outside China, mainly Latin America, in business areas such as project finance, commercial services, derivatives and corporate bankig. It is the first alliance between a Spanish company and the Chinese Development Bank. BBVA is the largest Spanish investor in China.
      F. China initiates pilot export insurance to support culture
    (istock Analyst, Beijing, 10 January 2011) China on Monday launched a pilot program to boost the cultural industry through the support of insurance companies. PICC Property and Casualty, China Pacific Property Insurance, and China Export and the Credit Insurance Corp. are the first insurance companies to participate in the pilot. The China Insurance Regulatory Commission (CIRC) and the Ministry of Culture recently issued a notice to advance insurance support to culture industry.
  • (Independent, London, 23 January 2011) Lord Green, the new Trade minister, is being urged to embrace a wider spectrum of businesses when he embarks on a national tour tomorrow to promote British exports. Campaigners want the former HSBC chairman to expand the range of firms that Britain's export promotion body, the Export Credit Guarantee Department (ECGD), has traditionally supported to include new, green industries rather than the arms, aerospace and carbon-intensive industries that have soaked up export support to date.
  • (Queensland Business Review, Brisbane, 20 January 2011) Brisbane-based specialist manufacturer Ferra Engineering has secured its third contract to supply parts for the F-35 joint strike fighter (JSF) project. With the help of the Australian Government’s export credit agency, Export Finance and Insurance Corporation (EFIC)
  • (Dow Jones, Buenos Aires, 26 January 2011) Argentina is prepared to pay $9 billion in defaulted debt it owes to the Paris Club of sovereign creditors, but will seek a repayment period of up to six years. Settling its debts with the informal group of creditor nations would reopen Argentina's access to the credit insurance, loan guarantees and financing provided by the export credit agencies of Paris Club members.
  • (FERN, Brussels, January 2011) This briefing outlines the negative impact of ECA fossil fuel financing. The paper also raises the question of whether ECAs have a role to play in contributing to “climate finance.â€ “Climate financeâ€ is defined here as payments by developed countries (in the form of grants or equivalent) that are additional to Official Development Assistance (ODA) and that are made to fund developing countries’ climate change mitigation and adaptation needs.
  • (RTT News, New York, 11 January 2011) Sweden's central government payments showed a deficit of SEK 97.7 billion in December, which was SEK 4.7 billion smaller than the projected shortfall. The difference was mainly explained by larger tax income and an extra dividend from the Swedish Export Credit Corporation.