Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New October 2016

"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

See all "What's New!" updates since 2005 here.

  • UK fraud agency boss expects to move quickly in Airbus inquiry
  • Villagers suffer at the hands of Mozambique LNG gas development under consideration by US Ex-Im
  • Export credit financing for coal-fired power projects - A thing of the past?
  • NGOs oppose OECD moves to count export credits as ODA
  • Insurance firms expect Iran opening in 2017
  • Saudi Arabia blasts Korean Ex-Im bank for “playing” with UN climate fund
  • Animal welfare deserves better from ECAs
  • Boeing Reports Q3 Deliveries: Commercial Down, Defense Up
  • CAGW Names Rep. Charlie Dent October Porker of the Month
  • Zimbabwe Government to repay Sinosure arrears
  • Kuwait’s KNPC aims to finalise $5 billion-plus ECA backed loan by first quarter
  • Irish budget to target measures to help exporters

UK fraud agency boss expects to move quickly in Airbus inquiry

(Reuters, London, 12 October 2016) Britain's Serious Fraud Office (SFO) is working with French authorities in its investigation into alleged fraud, bribery and corruption at European aerospace group Airbus (AIR.PA) and expects to proceed "fairly quickly", its head said on Wednesday. The SFO launched a criminal inquiry in August into Airbus' use of third-party agents to win commercial jet sales after the company's compliance teams informed Britain's export credit agency, which arranges credit guarantees for overseas sales, of inaccuracies.

http://uk.reuters.com/article/uk-britain-sfo-idUKKCN12C24T


Villagers suffer at the hands of Mozambique LNG gas development under consideration by US Ex-Im

(Medium, Washington, 15 October 2016) Friends of the Earth USA conducted a field study of the impacts of the development of liquefied natural gas on rural communities and their lands in northern Mozambique, a project considered for financing by the U.S. government Export Import Bank. Friends of the Earth U.S. is working with Justiçia Ambiental/Friends of the Earth Mozambique and the Center for Biological Diversity to discourage Ex-Im Bank from supporting this project. Not far from the city of Pemba, Mozambique, villagers clamored to tell their stories of threats and lost land and livelihoods. Read the report here.

https://medium.com/economic-policy/villagers-suffer-at-the-hands-of-mozambiques-...


Export credit financing for coal-fired power projects - A thing of the past?

(Lexology Newsfeed, 5 October 2016) On 17 November 2015, members of the OECD which are party to the OECD Arrangement on Officially Supported Export Credits (the Arrangement), agreed to a new sector understanding that limits the availability of export credit finance for less environmentally friendly coal-fired power projects (the New Sector Understanding). The New Sector Understanding is due to come into force in January 2017. The members of the OECD that have signed up to the New Sector Understanding are Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland and the United States. The New Sector Understanding is likely to have a notable effect on the availability and terms of OECD export credit financings. However, it remains to be seen whether local commercial banks and development finance institutions in countries that are party to the Arrangement will align their approach to financing coal-fired power projects with that of the participating OECD export credit agencies.

http://www.lexology.com/library/detail.aspx?g=cddabde5-3523-4dd7-992c-e2bac6b07a...


NGOs oppose OECD moves to count export credits as ODA

(Eurodad, Brussels, 7 October 2016) Eurodad has learned that at an October 10 meeting of the OECD Development Assistance Committee (DAC) it was to be decided that the DAC would approve a blurring of lines between export credits and Official Development Assistance (ODA). The issue is now to be discussed with the OECD's Export Credit Group at the ECG's mid-November meetings. In times of shrinking ODA budgets and shrinking political support for ODA in donor countries, efforts have been proposed to design administrative tricks to stop this diminished support, developing measures that would allow export credits to be counted as ODA. NGOs oppose this move as export credits are only meant to support the corporate sector in industrialized countries.

http://www.eurodad.org/psi_2016


Insurance firms expect Iran opening in 2017

(PressTV, Tehran, 21 October 2016) International insurance companies say they expect to see a major opening in the Iranian market in 2017 with several key players saying they have already won deals to cover businesses in the country. Industry experts told Reuters that industry executives say aviation and energy are two main sectors in focus in Iran’s multi-billion insurance market. They emphasized that top tier European export credit agencies had specifically become active in guaranteeing trade finance for Western companies doing business with Iran. Reuters further added that Germany's Hermes, Italy’s SACE, and France's Coface have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic.

http://www.presstv.ir/Detail/2016/10/21/490064/Insurance-firms-expect-Iran-openi...


Saudi Arabia blasts Korean Ex-Im bank for “playing” with UN climate fund

(Climate Change News, London, 14 October 2016) The Export-Import Bank of Korea (Korea Exim) has drawn sharp criticism from Saudi Arabia for withdrawing its application to be a conduit for climate funding, days after protests attacked its history of financing coal. The board of the Green Climate Fund (GCF) was set to decide on Friday whether to accredit the bank. This would have allowed it to oversee projects that will help poor countries cope with the transition demanded by a changing climate. The Saudi Arabian representative noted: "We have spent time and effort at the last board meeting discussing this case and now for no obvious reason I can see the applicant has withdrawn” The accreditation of export credit agencies, such as Korea Exim, has proven to be a controversial issue both inside and outside the GCF. Several board members, particularly Sweden’s Anders Wallberg, have expressed concern that the parochial motivations of these agencies, which primarily exist to help domestic businesses win overseas contracts, were incompatible with the fund’s supranational vision. Lidy Nacpil, the regional coordinator of the Asian Peoples Movement on Debt and Development (APMDD), said: “[The bank’s] withdrawal of its GCF application is an important victory for many networks and movements worldwide. But our work is far from over. We want to stop all financing of fossil fuels.”

http://www.climatechangenews.com/2016/10/14/korean-export-bank-withdraws-climate...


Animal welfare deserves better from ECAs

(EuroActiv, Brussels, 7 October 2016) International finance institutions and member state export credit agencies continue to invest in projects outside the EU involving cruel farm animal confinement systems banned in the EU. Better joined-up thinking is needed with regard to investment policy and animal welfare, writes Joanna Swabe, executive director for Humane Society International/Europe. In 2013, Humane Society International released a report that revealed that EU countries were funding many animal agricultural projects in non-EU members, either through international finance institutions (IFIs) or export credit agencies, which employ housing systems that have long been prohibited and phased-out in the EU.

https://www.euractiv.com/section/euro-finance/opinion/animal-welfare-deserves-be...


Boeing Reports Q3 Deliveries: Commercial Down, Defense Up

(NASDAQ, New York, 10 October 2016) Boeing's third-quarter 2016 commercial deliveries of 188 airplanes were down due to lower demand for the 737, 777 and 787 Dreamliners. During the release of first-quarter delivery numbers, CEO Muilenburg had revealed that the company is losing out on important contracts related to aircraft and satellites to overseas rivals due to a stand-off in Congress over the future of U.S Export-Import (Ex-Im) Bank. This has restricted the export credit agency's financing capabilities.

http://www.nasdaq.com/article/boeing-reports-q3-deliveries-commercial-down-defen...


CAGW Names Rep. Charlie Dent October Porker of the Month

(Business Wire, Washington, 25 October 2016) [A vignette from the polarized US debate over Ex-Im] Citizens Against Government Waste (CAGW) named Rep. Charlie Dent (R-Pa.) its October Porker of the Month for his efforts to allow the wasteful Export-Import (Ex-Im) Bank to function with limited accountability... Rep. Dent is failing to tell his constituents the inconvenient fact that 64 percent of Ex-Im Bank financing is directed to just 10 giant, highly profitable corporations, including a whopping 40 percent to Boeing... Rep. Dent is fighting to allow the bank to operate with just two board members instead of three, which means one-third less accountability for the taxpayer-backed corporate welfare it provides.

http://www.businesswire.com/news/home/20161025006253/en/CAGW-Names-Rep.-Charlie-...


Zimbabwe Government to repay Sinosure arrears

(The Herald, Harare, 5 October 2016) The Zimbabwe Government has mobilised $7,2 million which will go towards part repayment of debt arrears owed to China Export and Credit Insurance Corporation (Sinosure) following reports the insurance company has been reluctant to guarantee loans from Chinese banks to Zimbabwean companies.It is reported that Sinosure has been reluctant to guarantee loans from Chinese banks to Zimbabwean companies because of Government’s failure to repay arrears owed to the Asian country.

http://www.herald.co.zw/govt-to-repay-sinosure-arrears/


Kuwait’s KNPC aims to finalise $5 billion-plus ECA backed loan by first quarter

(Indian Express, Dubai, 16 October 2016) Kuwait National Petroleum Co (KNPC) expects to finalise a loan of well over $5 billion to finance its Clean Fuels project by the end of the first quarter of next year, one of the world's largest-ever loans backed by export credit agencies. NBK Capital is acting as exclusive financial adviser for the facility, which would have backing from the South Korean, Dutch, British and Italian export credit agencies. HSBC is coordinating the transaction.

http://indianexpress.com/article/world/world-news/kuwaits-knpc-aims-to-finalise-...


Irish budget to target measures to help exporters

(The Irish Times, Dublin, 6 October 2016) The Government is planning a series of budget initiatives to help Irish companies raise finance, particularly in targeting new export markets in light of Brexit. The schemes will focus on circumstances where normal finance would not be available from banks. The Government is likely to ramp up SME lending from the State-owned Strategic Banking Corporation of Ireland (SBCI) and to develop specific programmes to support export sales to new markets.

http://www.irishtimes.com/business/economy/budget-to-target-measures-to-help-exp...


Heads of BRICS ECAs meet in New Delhi

(India Infoline, Mumbai, 13 October 2016) Members of the BRICS ECAs Forum are also the members of the International Union of Export Credit and Investment Insurers, London (U.K.) also known as Berne Union. BRICS countries had a share of around 22 percentage of World Trade with total Exports of about USD 3.5 trillion in 2015. BRICS ECAs supported more than USD 473 billion of exports from the Member countries. Members exchanged notes about various credit insurance products, business sectors and major destinations covered by the group. Members also discussed business trends and the rising defaults and claims in the light of heightened political and economic risk. The Terms of Reference for co-operation finalized in the last BRICS heads of ECAs meeting held at Russia were signed by the CEOs of BRICS ECAs. The next BRICS Heads of ECAs meeting will be hosted by SINOSURE, China under the chairmanship of China.

http://www.indiainfoline.com/article/news-top-story/heads-of-brics-ecas-meet-in-...


September 2016 What's New

"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

See all "What's New!" updates since 2005 here.

  • WTO: Airbus ruling 'brings threat of EU-US trade war'
  • Canada to step up UK trade with new export hub after Brexit vote
  • Business Groups Ramp Up Push for Export-Import Bank to Make Larger Loans
  • Angola takes out EDC loan in Canada to pay for locomotives from General Electric
  • CSO Comments on Efic Policies and Procedures for environmental and social review of transactions
  • Summary report on Dutch Export Credit Facility Masterclass
  • Euler Hermes launches China trade insurance joint venture
  • Austria's OeKB and Australia's EFIC increase Iran export financing
  • U.S., French export-credit agencies’ role in OneWeb remains questionable
  • Russian ECA offers to finance $4bn in Cuban development schemes

WTO: Airbus ruling 'brings threat of EU-US trade war'

(The Week, London, 23 September 2016) French aircraft-maker Airbus has benefitted from as much as $22bn (£17bn) in illegal state aid from EU member states, including £3bn from the UK, the World Trade Organisation (WTO) has ruled. The judgement marks the latest chapter in what the BBC brands the world's "largest and longest-running trade dispute". It will not by any means be the last. On its own, the ruling has the potential to trigger a "trade war between the United States and the European Union", says The Times. The WTO says the EU has failed to comply with as many as 34 diktats designed to prevent governments subsidising Airbus at the cost of competition - and to the ultimate detriment of its big US rival, Boeing. A UK SFO (Serious Fraud Office investigation centres on "irregularities" in the use of third-party intermediaries on export deals underwritten by the UK, France and Germany through so-called "export credits".

http://www.theweek.co.uk/75318/airbus-ruling-brings-threat-of-eu-us-trade-war


Canada to step up UK trade with new export hub after Brexit vote

(The Telegraph, London, 17 September 2016) Canada is setting up an export agency office in the UK in an attempt to boost trade links with one of its biggest trading partners after the EU referendum. In the latest indication of the desire of non-EU countries to do more business with the UK, Export Development Canada (EDC) will open a London site this week. Britain is already Canada’s third-largest trading partner, with more than C$20bn (£11.5bn) of exports last year. The EDC said its decision to open a site in London showed that it takes “a long-term view on the strength of the UK economy following the Brexit vote, providing a stable source of capital”.

http://www.telegraph.co.uk/business/2016/09/17/canada-to-step-up-uk-trade-with-n...


Business Groups Ramp Up Push for Export-Import Bank to Make Larger Loans

(SDC Executive, Arizona, 15 September 2016) A growing number of business groups are urging House and Senate leaders to approve a spending bill allowing the Export-Import Bank to approve larger loans again. Fifteen groups sent a letter calling on congressional leadership to include a temporary change to the agency's quorum requirement for its board of directors in a continuing resolution (CR) so that it may again review transactions over $10 million. Under current law, the five-member board must have three people to evaluate transactions above that level. There are only two board members now.

http://www.sdcexec.com/news/12257363/business-groups-ramp-up-push-for-export-imp...


Angola takes out EDC loan in Canada to pay for locomotives from General Electric

(Macauhub, Macau, 29 September 2016) Canada’s export credit agency will finance the purchase by Angola of 100 locomotives from US group General Electric, according to an authorization granted by presidential order. The order authorizes the state to borrow US$429.5 million from the Canadian state agency and justifies the decision with the need to diversify sources of funding, while ensuring the purchase of the locomotives.

http://www.macauhub.com.mo/en/2016/09/29/angola-takes-out-loan-in-canada-to-pay-...


CSO Comments on Efic Policies and Procedures for environmental and social review of transactions

(Jubilee Australia, Sydney, 9 September 2016) The Jubilee Australia Research Centre and Oxfam Australia have submitted comments on Efic Policies and Procedures for environmental and social review of transactions prior to a 2016 government review. They note that, although Efic’s approach to addressing issues around environmental and social concerns does generally match that of other OECD Export Credit Agencies (ECAs), this unfortunately does not mean that the approach may be considered ‘international best practice’. They outline areas for improvement in relation to the standards that are used, the transparency of reporting, and accountability to affected communities and Australian taxpayers who directly or indirectly support Efic’s work. They add that Australia has long opposed the attempt to curb export credit financing of coal and other fossil fuels. Pressure from Australia and South Korea resulted in the November 2015 OECD agreement being much watered down. That agreement is insufficient for two main reasons. First, it includes coal but excludes other fossil fuels such as natural gas which also contribute to global warming. Efic itself was a financier of the massive PNG LNG deal in 2009. Second, analysis reveals other loopholes in that it leaves out financing for mining, transport and related coal infrastructure. They propose that Efic’s Policy on environmental and social reviews contain a clear statement that Efic will no longer support fossil fuel projects of any type, including all fossil fuel extractive projects and pipelines, transport infrastructure, etc. They further propose that Efic advocate amongst the OECD Export Credit Group to do the same.

Efic has announced that it is considering financing the development and construction of a new Category A project, the greenfields Boikarabelo coal mine and railway in South Africa which faced market concerns in 2015.

http://www.jubileeaustralia.org/_literature_79562/(Oct_2010)_EFIC_Environment_Po...


Summary report on Dutch Export Credit Facility Masterclass

(Both Ends, Amsterdam, 5 September 2016) At the end of 2016, the Dutch government will present a policy review of its export credit facility - as implemented by Atradius Dutch State Business (ADSB) - to the national Parliament. In conversations with multiple staff members of parliamentarians, it was concluded that it would be helpful to organise a kind of Masterclass to enable them to better understand the role of the Dutch ECA from different perspectives. Both ENDS invited a range of stakeholders to attend and contribute to this meeting with a goal to inform Dutch parliamentarians and their staff on the functioning of the Dutch export credit facility, and the possibilities to effectively counter and mitigate negative economic, social, environmental and human rights impacts in developing countries linked to ADSB supported exports and investments. At the meeting ADSB, Boskalis, Both ENDS, the Netherlands Commission for Environmental Assessment (NCEA), MVO (CSR) platform, the Dutch Banking Association, Rabobank, Transparency International and the employers’ organisation VNO-NCW held short presentations and provided input to the discussions. The Dutch National Contact Point for the OECD-Guidelines on MNE’s (NCP) participated as an observer. All participants in the Masterclass concluded that this meeting was very helpful as a preparation for a better informed parliamentary discussion on the policy review that is on the agenda later this year.

http://www.eca-watch.org/sites/eca-watch.org/files/Summary%20report%20Masterclas...


Euler Hermes launches China trade insurance joint venture

Global Trade Review, London, 12 Sepptember 2016) Euler Hermes has announced a credit insurance joint venture (JV) with China Pacific Property Insurance Company (CPPIC). Headquartered in Shanghai, the venture will operate under the name CPPIC Euler Hermes and be managed by existing members of staff from both companies. CPPIC is the third-largest property and casualty insurer in China, but also one of only a few export credit insurers in the country. The two firms have worked in partnership, growing their joint trade credit portfolio, since 2011.

http://www.gtreview.com/news/on-the-move/euler-hermes-launches-china-trade-insur...


Austria's OeKB and Australia's EFIC increase Iran export financing

Austria's OeKB raises Iran export financing
Press TV, Tehran, 28 September 2016) The Central Bank of the Islamic Republic of Iran (CBI) says Austrian export credit agency OeKB has raised its cover for Iran transactions to 1 billion euros, the Mehr news agency reports. The announcement by Austrian Minister for Finance Hans Jörg Schelling came during a meeting with CBI Governor Valiollah Seif in Vienna, the report said.
Australia hails 'dawn of new age' in Iran ties
(Payvand, San Francisco, 28 September 2016) Iran and Australia have signed fresh agreements to forge closer ties, with Austrian Trade Minister Steve Ciobo announcing the dawn of a new age of relationship. Ciobo is leading a trade delegation of more than 20 companies to Tehran, seeking out opportunities, buoyed by the prospects in Iran's mining, oil and gas, and other industries as well as the near 80 million population. Australia's export credit agency EFIC and Export Guarantee Fund of Iran (EGFI) signed a fourth MoU to facilitate trade and help businesses navigate challenges arising from sanctions which still continue to dog dealings with Iran.




U.S., French export-credit agencies’ role in OneWeb remains questionable

(Space News, Vermont, 14 September 2016) The OneWeb constellation, with a total of 900 low orbiting satellites whose capital cost has been estimated at around $3.5 billion including ground spares, is seeking export-credit agency support. But the U.S. Export-Import Bank remains on the sidelines for large projects, at least for now, and how far France's Coface can go in backing what's essentially a U.S.-based satellite manufacturing operation is unclear. All but 10 of the approximately 900 satellites, including spares, to be built for the project will be manufactured in Florida by OneWeb Satellites, a joint venture of Airbus Defence and Space and OneWeb. Ten prototype satellites will be built at Airbus’s Toulouse, France, facility. It remains unclear how much Airbus- or French-sourced hardware for the balance of the constellation will be shipped to Florida.

http://spacenews.com/u-s-french-export-credit-agencies-role-in-oneweb-remains-qu...


Russian ECA offers to finance $4bn in Cuban development schemes

(Global Construction Review, London, 29 September 2016) Russia has offered to embark on a spectacular renewal of its economic relations with Cuba, based on 55 projects with a total value of some $4bn over the next four years, and has also agreed a cooperation agreement in the nuclear power sector. The bulk of the funding would be provided by Russian banks and safeguarded by guarantees from the Agency for Export Credit and Investment Insurance products.

http://www.globalconstructionreview.com/news/russia-offers-fina7nce-4bn-cub7an-d...


August 2016 What's New

"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

  • Does the US ExIm Bank really promote US exports?
  • Norway opens $1-billion export credit line for Iran
  • Argentina Seeks IMF Help to Shed Poor OECD Export Credit Risk Ranking
  • Koreas’ export credit agency to back Sonangol financing to help Daewoo Shipbuilding
  • Paris Club Creditors Confident on Cuba Despite Liquidity Crisis
  • Nigerian ECA NEXIM, Fidelity Bank deepen non-oil exports
  • India's ECGC mulls credit insurance for Indian companies' foreign subsidiaries
  • GE Breaks Ground On Canadian Facility
  • China to intensify efforts to stabilize foreign trade including expanded export credit support
  • Ex-Im Bank Scouts Out Future Export-Financing Deals
  • Airbus credit freeze costs tally up
  • Banks develop a blockchain prototype solution for trade finance

Does the US ExIm Bank really promote US exports?

(Nottingam University, Nottingham, 27 July 2016) This 35 page paper investigates the impact of the US Export-Import Bank on US exports particularly in the wake of international competition from foreign national export credit agencies (ECAs). We employ a gravity framework on a country-industry-year-level panel dataset that matches EXIM authorizations with US bilateral exports. Our results depict the general ineffectiveness of the Bank in promoting exports within and across industries. Some heterogeneities behind the general finding are also uncovered: industries other than aerospace parts and products are more likely to benefit from EXIM authorizations, and that EXIM authorizations to larger businesses seem to be more effective in encouraging exports. Furthermore, we find no evidence that explains the role of EXIM in encouraging US exports by offsetting foreign ECA competition. These results are neither affected by competing countries' membership to the OECD Arrangement nor by the size of American firms that received EXIM support. Our results cast doubt on the ubiquitously positive claims made by the Bank and its supporters, yet also provide policy lessons for countries that are either in the inception stages of establishing their own ECAs or are now placing greater importance on ECA financing in encouraging domestic exports. See also the Global Trade Review review article

https://www.nottingham.ac.uk/gep/documents/papers/2016/2016-12.pdf


Norway opens $1-billion export credit line for Iran

(Daily Mail, London, 17 August 2016) Iran said Wednesday that Norway had offered the Islamic republic a $1-billion credit line following a meeting between their foreign ministers in Tehran. Borge Brende and Mohammad Javad Zarif signed three "export credit" deals aimed at funding "development and infrastructure projects", Iran's foreign ministry said in a statement. Iran has struggled to tap international finance as many banks fear US penalties if they do business with the Islamic republic. A landmak deal between Tehran and world powers, which was signed in July last year and came into force in January, saw many international sanctions on Iran lifted in exchange for curbs to its nuclear programme. European countries have been keen to do business with one of the last frontier markets, but Washington has maintained sanctions related to Iran's human rights record and missile programme.

http://www.dailymail.co.uk/wires/afp/article-3745268/Norway-opens-1-billion-cred...


Argentina Seeks IMF Help to Shed Poor OECD Export Credit Risk Ranking

Argentina’s sovereign debt may be outperforming most of its emerging-market peers this year, but the OECD says the country is as risky as North Korea, Venezuela and Iran. The ranking is a remnant from the days when Argentina was still a pariah in international markets -- and it could soon change. About half a dozen International Monetary Fund economists are set to touch down in Argentina in September to assess the reliability of the country’s economic statistics and the sustainability of its fiscal and monetary policies, as well as the banking industry. The so-called Article IV consultation -- normally an annual review but, in Argentina’s case, the first in a decade -- is a key step to reclaiming legitimacy among organizations like the OECD and unlocking cheaper financing from member nations.

http://www.bloomberg.com/news/articles/2016-08-11/argentina-seeks-imf-help-to-sh...


Koreas’ export credit agency to back Sonangol financing to help Daewoo Shipbuilding

(Pulse News, Seoul, 2 August 2016) State-run Korea Trade Insurance Corp. (K-sure) will likely provide additional security for two drill ships Daewoo Shipbuilding & Marine Engineering Co. (DSME) made but whose delivery is being stalled because of financial troubles of Angola’s state-run oil company Sonangol, according to the financial authorities and creditors on Monday.

http://pulsenews.co.kr/view.php?sc=30800021&year=2016&no=550925


Paris Club Creditors Confident on Cuba Despite Liquidity Crisis

(Frontera News, London, 25 August 2016) In December, Paris Club creditor nations hammered out a debt restructuring deal with the Cuban government, which forgives a large portion of monies owed from a default in 1987, while the Cuban government committed to paying off the rest over time. Observers cite these kinds of deals as evidence that the Cuban government is serious about integrating itself fully into the global economy, but some are wondering if the island’s current liquidity crisis will compel it to fall back on its debt service promise. “The Paris Club countries that struck the deal with Cuba have all been encouraging their ECAs (export credit agencies) to open up to doing more business with Cuba,” said Pavel Vidal, a former official at Cuba's Central Bank now teaching at the Javeriana University in Cali, Colombia. “In fact, the Paris Club deal allowed for individual countries to convert part of the restructured debt into projects and equity. I think the French, Dutch and the Brits have also opened some lines. Europeans are trying to get to the party before the Americans can come in."

https://fronteranews.com/news/latam/paris-club-creditors-confident-despite-liqui...


Nigerian ECA NEXIM, Fidelity Bank deepen non-oil exports

(The Nation, Lagos, 19 August 2016) The Nigerian Export Import Bank (NEXIM Bank) and Fidelity Bank Plc are taking measures meant to enhance non-oil exports and create wealth for Nigerians. Both lenders urged exporters to explore opportunities presented by the N500 billion (US$1.58 billion) non-oil Export Stimulation Facility (ESF) as well as the expansion of the export credit Rediscounting and Refinancing Facilities (RRF) to develop the economy, stimulate their operations, and create jobs for the people.

http://thenationonlineng.net/nexim-fidelity-bank-deepen-non-oil-export/


India's ECGC mulls credit insurance for Indian companies' foreign subsidiaries

(Business Standard, Mumbai, 1 August 2016) Indian ECA ECGC is likely to introduce credit insurance cover for the overseas-based subsidiaries of Indian companies, a top company official said here today. Under the proposed scheme, which is likely to be launched within a month's time, ECGC will provide cover to 85 per cent of the project cost to the overseas-based subsidiaries of the Indian companies.

http://www.business-standard.com/article/pti-stories/ecgc-mulls-credit-insurance...


GE Breaks Ground On Canadian Facility

(Compressor Tech News, Waukesha, WI, 26 August 2016) GE has started constructing its multimodal manufacturing facility in Welland, Ontario, Canada. The facility, a US$165 million investment in its first phase, will manufacture GE Power’s reciprocating gas engines, as well as components for compression, mechanical drive and power generation applications. It will also craft components for GE transportation diesel engines. The facility, expected to open in early 2018, will employ 220 people and has the ability to expand for other GE global businesses, such as Power, Oil & Gas and Transportation. Since 2010, GE’s Waukesha brand formerly held its manufacturing operations in Waukesha, Wisconsin. In September 2015, however, GE Power decided to move its manufacturing jobs to Canada, citing a lapse of charter for the US export credit agency – the Export-Import Bank (Ex-Im) as a reason. With the facility in Canada, GE will be able to access support from the country’s export credit agency, Export Development Canada (EDC). GE has a long-standing relationship with EDC, the company said.

http://www.compressortech2.com/August-2016/GE-Breaks-Ground-On-Welland-Facility/...


China to intensify efforts to stabilize foreign trade including expanded export credit support

(Xinhua, Beijing, 16 August 2016) China's State Council (the Cabinet) urged local authorities to intensify efforts to stabilize exports and imports, which both declined in the first seven months of the year. Trade facilitation measures adopted by the country's free trade zones should be duplicated, standards at different customs areas must be unified, and examination procedures should be simplified, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang Tuesday. Financial institutions should enhance credit support to companies that have received export orders, help them control exchange rate risks, and expand the coverage of export credit insurance, the statement said.

http://news.xinhuanet.com/english/2016-08/16/c_135604465.htm


Ex-Im Bank Scouts Out Future Export-Financing Deals

(Wall Street Journal, Beijing, 9 August 2016) The U.S. Export-Import Bank is vetting major export-financing deals in advance so it can resume lending as soon as a U.S. Senate logjam is resolved, its chairman said Tuesday in Beijing. Fred Hochberg, Ex-Im Banks’ chairman and president, said he hopes the Senate can clear an impasse during the next few months affecting a backlog of loan applications totaling some $20 billion at the Washington-based institution, which finances U.S. exports. The bank has run into stiff opposition from critics who characterize as “corporate welfare” its support for U.S. exporters such as Boeing Co. Last year, the bank’s operations were suspended after House Republicans stopped Congress from voting on a reauthorization measure before its charter expired last July. In December, large majorities in both chambers voted to renew its lapsed charter. But Sen. Richard Shelby (R., Ala.), the chairman of the Senate Banking Committee, has blocked the confirmation of a board member, depriving the bank of the quorum needed to approve deals exceeding $10 million.

http://www.wsj.com/articles/ex-im-bank-scouts-out-future-export-financing-deals-...


Airbus credit freeze costs tally up

(Global Trade Review, London, 3 August 2016) France’s Airbus group supplied a near tenfold increase in customer financing following a freeze in export credits from the UK, France and Germany earlier this year, in light of potential corruption and transparency issues. In its half-yearly statement the company said it supplied €587mn of financing to customers compared to €63mn for the first half of 2015. “This is temporary finance we are doing as we’re under suspension of export credit financing,” company CEO Tom Enders told analysts. However, this is only 1% of total ECA financing received in 2015, reflecting that the market is liquid and competitive, he added. Meanwhile, the UK Serious Fraud Office has opened a criminal probe related to use of third-party consultants.

http://www.gtreview.com/news/europe/airbus-credit-freeze-costs-tally-up/


Banks develop a blockchain prototype solution for trade finance

(Brave New Coin, Southbank AU, 15 August 2016) Bank of America Merrill Lynch (BofAML), HSBC, and the Infocomm Development Authority of Singapore (iDA) recently announced that they have jointly developed “a prototype solution built on Blockchain technology that could change the way businesses around the world trade with each other.” Trade finance involves a range of activities; lending, issuing letters of credit (LCs), factoring, export credit issuance, and insurance. The processes are typically time and labor intensive, involving many parties while multiple documents must be checked to reduce risk and provide assurance to sellers, buyers, and their banks. An LC or Documentary Credit represents a guarantee by a bank that a seller will receive payment from a buyer once certain conditions are met. Using blockchains, all parties involved in an LC transaction can view all actions in real-time, such as when the seller has shipped the buyer's goods. “Each action in the workflow is captured in a permissioned distributed ledger, giving transparency to authorised participants whilst encrypting confidential data,” states the project press release.

http://bravenewcoin.com/news/bank-of-america-merrill-lynch-hsbc-and-ida-develop-...


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