Index for August 2013

Volume 12, Issue 8

  • (Business New Europe, Moscow, 17 August 2013) Seated next to Fred Hochberg in Prague is Danny Roderick, president and CEO of Westinghouse, the US nuclear company that's one the main reasons for Hochberg's visit to the Czech Republic. Westinghouse is in the midst of a battle with Russia's Rosatom to win the right to build two new nuclear reactors in the country, in a deal worth €8bn-12bn, and Ex-Im bank wants to play its part by offering low-interest loans to companies that buy American equipment and services... Hochberg, fresh from being confirmed in July by the US Senate for a 2nd term as president of Ex-Im Bank, presided over a banner year in 2012 - and 2013 looks like it could surpass even that. The bank’s overall financing in 2012 exceeded $35.7bn, backing $50bn of exports by US companies. Exports in the year continued their recovery from the depths of the global crisis in 2008, with US exports reaching a then record high of $188.7bn set in December 2012.

  • (Business Recorder, Karachi, 29 August 2013) The Export Credit Bank of Turkey (Exim Bank) is to give $300 million credit facility to Pakistan for 2013-14 for which a formal pact will be signed during the 3-day (September 16-18) official visit of Prime Minister Nawaz Sharif to Turkey... According to sources, considerable scope for further Turkish investments especially in the energy (hydel/coal and wind) and infrastructure sectors exists.

  • (Times of Oman, Muscat, 21 August 2013) In light of the political instability and current events in Egypt which have affected businesses, export credit agencies  (ECAs) of several countries are exercising considerable caution in providing new cover to their exporters to that country. A number of ECAs have cancelled credit limits to buyers in Egypt as the payment risks have been compounded by political risks which could inhibit buyers to fulfil their payment commitments. In October 2011, ECA Watch reported that Britain was pursuing Egypt for debts of up to £100m that funded the purchase of arms.

  • (Premium Times, Abuja, 24 August 2013) The Federal Government on Friday asked the Board of the Nigeria Export-Import Bank (NEXIM) to support Nigeria in maintaining its leading position as the powerhouse in regional trade in West Africa... Mr. Ngama, Minister of State for Finance, said last year was the third time in a row that the bank was posting profit on its balance sheet and declaring dividends to its shareholders; a development that has put the bank on a path of sustained profitability. He said the management has also taken steps to clean up the balance sheet through the establishment of Debt Recovery Task Force which recovers bad debts and write-off irrecoverable legacy loan. He added that efforts have been made to improve the credit culture through training and enforcement of strict credit evaluation processes. However he asked the board to work towards securing a credit rating that would enable the bank go out and source for funds and increase its capital base.

  • (Bloomberg, Washington, 23 August 2013) The U.S. Export-Import Bank’s ability to compete with similar lenders from nations including China and Brazil has been hurt by questions stemming from last year’s reauthorization fight, according to the bank’s chairman. Fred Hochberg said reporters have asked him on recent trips abroad about the bank’s future, after it survived a Republican campaign last year to end its lending authority. Its $140 billion lending limit runs through September 2014. “That uncertainty is damaging to U.S. competitiveness,” Hochberg said today in an interview at the bank’s headquarters in Washington.

  • (Atradius Dutch State Business, Amsterdam, May 2013) The 2012 Annual Review of Atradius Dutch State Business shows that while the number of approved applications actually declined in 2012 as compared to the previous year, the total aggregate nominal risk exposure in the same year more than doubled to a formidable € 16.6 billion. The Annual Review also reflects sustained efforst to expand the business of the Dutch ECA by developing new instruments, such as the 'Export Credit Guarantee' to facilitate bank financing for export transactions.

  • (Bloomberg, Sydney, 11 August 2013) Gina Rinehart, chairwoman of Roy Hill Holdings Pty, is seeking about A$4 billion (US$3.56 billion) from export credit agencies, Banks are betting the economics behind Rinehart’s 21-year-long ambition outweigh concern that $250 billion of planned mines will create a glut as slowing growth in China saps demand in the biggest buyer of the raw material.

  • (Satnews, Sonoma, 14 August 2013) After years that saw a clear domination by Export Credit Agency backed financing, which remains important for emerging regional players, financial transactions have picked up strongly in the satellite industry over the last 12 months. With the financial sector seemingly ready to take more risk again... Financing for satellite projects and the related challenges will be discussed from different points of view during the September 9-13 Summit for Satellite Financing welcoming executive-level speakers from leading financial institutions, ECAs and satellite operators.