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Portugal announces intent to renationalize ECA COSEC

Portugese Prime Minister Jos� Socrates announced in the bimonthly debate at the National Parliament, the government's intent to buy the majority of COSEC's shares, and therefore, re-nationalize this export insurance company in order to ensure a more direct intervention of the state in export credit markets, and provide a better support to Portuguese exporters. 

While the prime minister has assumed that COSEC shareholders are willing to sell (COSEC is
held 50% by the Portuguese bank BPI and 50% the German ECA Euler Hermes) , these
institutions have , so far, made no public announcement or comment regarding this issue.

This measure follows public demands made in the past weeks, in major newspapers by
the President of the Industry and Foreign Commerce Association (AICEPS), by Portuguese Industry
Confederation representants, and by the President of the Portuguese Enterprise Association
(AEP), stating that too many objections and obstacles have been put in the way of companies
wishing export support. 

The first reactions, following the prime minister's announcement, have been diverse, and
include the Spanish CREDITO Y CAUCION's critic, stating there is a lack of fair-play on the state's
choice (given that the Portuguese national law allows, since 2007, other companies than
COSEC to work on state guarantees, such as Credito y Caucion, or the Portuguese Insurance
company Mapfre). The main opposition party on the government (PSD) has also commented
on the announcement, questioning the reason and the actual sense of this re-nationalization.

The ECA Iberia campaign notes on it's web site that following this announcement, civil society hopes that this eventual deal will not compromise the standards achieved regarding sustainability and transparency in relation to the environmental andsocial impacts generated by state supported projects.