Index for July 2014

Volume 13, Issue 7

  • (US General Accounting Office, Washington, 8 July 2014) From 2008 through 2013, the US Ex-Im Bank (ExIm) and European ECAs supported 26% of large commercial aircraft deliveries. Since 2004, Ex-Im financing support for Boeing wide-body jet exports has generally increased, and, in fiscal years 2008 through 2012, Ex-Im's total authorizations increased significantly in the wake of the 2007 to 2009 financial crisis. The highest level of wide-body jet authorizations as a percentage of Ex-Im's total authorizations occurred in fiscal years 2007 and 2011, when it reached 24%. As of March 31, 2014, Ex-Im's financial exposure (outstanding financial commitments) in wide-body jets was about $32 billion which represented about 28% of Ex-Im's total financial exposure.

  • (Hindu Business Line, Mumbai, 16 July 2014) Export Credit Guarantee Corporation of India Ltd (ECGC) has signed a Memorandum of Understanding (MoU) on Co-operation with the export credit agencies of Brazil, Russia, China and South Africa in Fortaleza, Brazil. The MoU, which was signed in the presence of Heads of Governments from BRICS countries, will strengthen collaboration among BRICS countries' ECAs by establishing a framework of co-operation among them to support and encourage international trade between the BRICS countries, and wherever appropriate, to facilitate the supply of goods and services from their respective countries as part of a project in any of the BRICS countries.
  • (Creditman, Amsterdam 15 July 2014) A new white paper "The future of Trade Credit Insurance€" has been published by Russell Group Limited, a risk management software and service company, for which Robert Nijhout, Executive Director at ICISA was interviewed. The white paper explores the current export and credit environment, supply chain disruption, global sovereign debt concerns, and the threats posed by non-payment and political risks. One interesting fact in the paper is that the International Trade Survey 2014 reported that €360bn of debt has been written off in Europe due to late or non-payment of bills.

  • (General Accounting Office, Washington, 25 June 2014) The U.S. Export-Import Bank has addressed recommendations GAO made in two 2013 reports that related to processes for estimating losses, managing financial risks, and forecasting outstanding financial commitments (exposure).

  • (Le Figaro, Paris, 6 July 2014) The French Minister of Foreign Affairs and International Development has called for an end to public subsidies for fossil fuels. After warning that our addiction to fossil fuels will destroy more wealth than it creates, he called on public and private investors to switch their investments from fossil fuels to renewable energy, and for companies to report their carbon emissions in order to make them a major factor in the choice of investments.

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  • (The Independent, London, 6 July 2014) The Government is using taxpayers'’ money to underwrite £140m-worth of deals for a company whose ultimate ownership is based in a notorious tax haven. UK Export Finance, a branch of the Department for Business, is risking public funds to provide insurance cover for deals involving the aircraft leasing firm AWAS Aviation Capital Ltd., controlled by a friend of Foreign Secretary William Hague.

  • (ECNS.CN, Beijing, 24 July 2014) China Export and Credit Insurance Corp (Sinosure) insured $229.12 billion in the first half of 2014, a year-on-year increase of 19.2 percent, the China Securities Journal reported on Tuesday. Short-term export credit insurance accounted for $181.38 billion; $7.62 billion was in mid to long-term export credit insurance and $18.88 billion was in overseas investment insurance.