ECA Watch Newsletter

What's New September 2017

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?

Australia’s export credit agency ordered to ­extend loans to coal ventures

(The Australian, Sydney, 11 September 2017) A ban on government-backed loans for onshore coal and ­resource export operations will be overturned in the “national interest” to help fund billions of dollars in projects that are threatened by the growing reluctance of the major banks to back them. Trade Minister Steve Ciobo will issue a direction this week to Australia’s export credit agency to broaden its mandate and ­extend loans to viable small-to-medium sized onshore resource ventures including coal projects and related infrastructure struggling to secure private-market ­finance... The ANZ bank last week ­declared it was unlikely to finance a proposal to extend the life of AGL’s Liddell coal-fired power station in NSW on environmental grounds despite the warnings from the energy regulator that an energy price and supply crisis was looming due to the lack of reliable baseload power... Efic has reported an increasing number of resource projects ­facing difficulties in obtaining ­private-market finance either ­because of a higher commercial risk profile in the post-mining boom environment but also due to the recent rise in aggressive campaigning by activist groups putting pressure on the banks.

http://www.theaustralian.com.au/business/mining-energy/overturned-loans-ban-offe...


NGOs urge Bank of Tokyo - Mitsubishi to reject Vietnamese coal plant finance

(Friends of the Earth, Washington, 29 September 2017) NGOs have urged the Bank of Tokyo – Mitsubishi UFJ (BTMU) to reject financing for the Long Phu-1 coal plant in Vietnam. In light of its recent accreditation at the Green Climate Fund and the commitment to addressing climate change that this accreditation implies, BTMU’s support for this climate-polluting debacle would be particularly inappropriate and reflect a complete disregard for international climate goals as set out in the Paris Agreement. The US Ex-Im Bank environmental assessment of the project noted that it will produce 63 times the annual 100,000 tonnes of CO2 limit that requires alternative project analyses under Equator Bank Principles, an analysis that the Bank has failed to undertake... Long Phu-1 violates a broad set of environmental and social policies, and an independent expert analysis has demonstrated that the project sponsor’s consulting firm doctored the coal plant’s greenhouse gas emissions estimates to appear compliant with international policies.

https://foe.org/publication/long-phu-1-bank-tokyo-mufj-letter/


Boeing took a foreign firm to task over subsidies. Critics say Boeing gets ECA and other help, too.

(Washington Post, Washington, 28 September 2017) The Commerce Department signaled its intent to impose a 219 percent tariff on Canadian-made jetliners, claiming aircraft maker Bombardier has been unfairly propped up by the Canadian government... But critics of the decision say Boeing itself benefits from its own form of government support, which includes federal contracts and tax breaks from state governments in the United States — a reflection of how U.S. corporations are also dependent on government policies, contracts, decisions and in some cases direct financial inducements in their attempts to remain internationally competitive... Others argue that the U.S. Export-Import Bank indirectly facilitates Boeing’s sales abroad, because the bank’s loans effectively allow foreign airlines to purchase Boeing jets at a discount.

https://www.washingtonpost.com/business/economy/boeing-took-a-foreign-firm-to-ta...


Airbus in talks to settle ECA fraud claims for £1 billion

(Evening Standard, London, 15 September 2017) The Serious Fraud Office and French prosecutors are in close discussion over the terms of a £1 billion-plus settlement for Airbus over corruption allegations. The deal, called a Deferred Prosecution Agreement (DPA), would be the largest ever in Europe, after a year-long investigation into irregular payments by Airbus to intermediaries. The French and German-owned plane maker allegedly used highly-paid fixers around the world to sell A380 planes worth billions to China, Turkey, Indonesia, the United Arab Emirates and others.  Sales to Kazakhstan, Tunisia and Saudi Arabia are being investigated separately. Airbus has admitted “misstatements and omissions relating to information provided in respect of third party consultants in certain applications for export credit finance for Airbus customers”.

https://www.standard.co.uk/business/airbus-in-talks-to-settle-fraud-claims-for-1...


Standard Bank Seeks to ECA funding for $3 billion Ugandan Oil Pipeline

(Bloomberg, Kampala, 15 August 2017) Standard Bank Group Ltd.’s Ugandan unit plans to raise $3 billion for a crude pipeline by the second half of next year as the East African country prepares to start oil production by 2020. Companies will explore raising bank debt or loans from export credit agencies among the options they are considering. The 1445 kilometer pipeline will connect Uganda’s Hoima oilfields in the west to the port of Tanga in neighboring Tanzania.

https://www.bloomberg.com/news/articles/2017-08-15/standard-bank-seeks-to-raise-...


Merkel Mulls Revision of Hermes Support for Ankara as Two Germans Detained in Turkey

(Sputnik, Berlin, 3 September 2017) German Chancellor Angela Merkel said Sunday that Berlin cannot stop the talks on Turkey's accession, but it would impose economic punitive measures in response to arrests of German citizens... She added that Berlin could put pressure on Ankara in terms of its economy, in particular by issuing a stricter warning to those who wanted to visit the country and by introducing restrictions on loans from the European Central Bank, World Bank and Hermes export credit guarantees issued by the German government.

https://sputniknews.com/europe/201709031057053190-merkel-schulz-turkey-migration...


Trump's Ex-Im Nominee Scott Garrett Elegantly Squares The Circular Republican Firing Squad

(Forbes, 17 September 2017) Former Representative Scott Garrett is on record, as reported by Politico, as committed to supporting President Trump’s commitment to having a “‘functional’ export credit agency” while seeing Ex-Im, which provides trade financing to American exporters, "reformed and modernized as outlined by Congress." This is entirely sound.Former Representative Scott Garrett is on record, as reported by Politico, as committed to supporting President Trump’s commitment to having a “‘functional’ export credit agency” while seeing Ex-Im, which provides trade financing to American exporters, "reformed and modernized as outlined by Congress." According to an article in Politico, “In 2015, Garrett said the agency ‘embodies the corruption of the free enterprise system.’” This, of course, endeared him to free market conservatives while offending Ex-Im's beneficiaries. Trump’s budget chief Mick Mulvaney said on CNBC that Trump was now pro-Ex-Im, and the president himself professed his love for Boeing's bank to the Wall Street Journal. The president said he planned to fill two vacancies on the bank's board, which has been effectively paralyzed with three open seats on its five-member board.

https://www.forbes.com/asites/ralphbenko/2017/09/17/president-trumps-nominee-sco...


Iran Receives First Round of Post-Sanctions Finance From European Banks and ECAs

(Financial Tribune, Tehran, 23 September 2017) In what were the first finance deals clinched with cautious European banks after the implementation of the nuclear accord provided sanctions relief in January 2016, Iran signed two agreements worth a total of €1.5 billion ($1.8 billion) with Austria's Oberbank and Denmark's Danske Bank on Thursday. According to Oberbank's CEO, export credit guarantees covering 99% of a project’s volume will be provided by the Oesterreichische Kontrollbank (OeKB), the main Austrian body that issues them.

https://financialtribune.com/articles/economy-business-and-markets/72854/iran-re...


What's New August 2017

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.

  • EU Commission underscores the role of ECAs in achieving Paris goals
  • UK undermining climate targets with export credit for fossil fuel projects abroad
  • Dakota Access Pipeline Owner Sues Enviros for Terrorism
  • Germany is reviewing export credit guarantees for German companies doing business with Turkey
  • UK Export Finance Publishes Their Annual Reports and Accounts
  • Iran Has a Long Way to Go to Restore Pre-Sanctions Ties
  • GAO: Status of Ex-Im End-Use Monitoring of Dual-Use Exports
  • Trump gives Ex-Im pick a chance to rescue nomination
  • EDC backed Bombardier sale to Zuma allies accused of corruption
  • Massive Nigerian investments coming with ECA and local financing

EU Commission underscores the role of ECAs in achieving Paris goals

(ECA Watch & Both ENDS, Amsterdam, 24 August 2017) In response to a European Greens Parliamentary question, Cecilia Malmström, European Commissioner for Trade, replied on behalf of the Commission that: "While in the understanding of the Commission the Paris Agreement does not directly address the export credit activities of the Member States, its core objectives should also be duly taken into account in this area [i.e. ECAs] like in all areas of government activity." The EC rightly recalls that the Coal-Fired Electricity Generation Projects Sector Understanding (CFSU) was a political contribution of the OECD Export Credit Group (ECG) to the Paris Agreement on climate action. However, even before closing the negotiations on the CFSU the International Energy Agency stated that, in order to keep global temperature rise below 2 degrees Celsius, new coal-fired power plants as well as at least two thirds of the existing stock should be closed by 2035. As a typical coal fired power plant has a life span of 30-40 years, the rationale of ECA support for all new coal-fired power plant thus is questionable. Last June, Both ENDS published a report that shows that 2/3 of the insured value of projects supported by the Dutch export credit agency, i.e. € 7.3 billion between 2012 & 2015, was for the fossil fuel sector. ADSB’s support for renewable energy projects in this period was only 1% of the insured value for energy-supporting projects. Overall OECD ECA data shows that between 2005 & 2014 38% of non renewable electric power generation projects worth US$35 billion (5.6% of total OECD ECA business) went to coal, 42% to Natural Gas and 17% to oil/diesel - i.e 97% to fossil fuels. Renewable electric power projects in that period were worth US$19.5 billion or 3.1% of OECD ECA business.  This underscores the need for all OECD governments to review whether and how publicly backed ECAs effectively contribute to the Paris Agreement goals.​




UK undermining climate targets with export credit for fossil fuel projects abroad

(The Actuary, London, 23 August 2017) Some 99.4% of the energy support given to foreign countries between 2010 and 2014 by the government department UK Export finance (UKEF) went towards fossil fuel projects, according to new research. This is done through helping UK firms invest overseas by providing guarantees, insurance and reinsurance against loss, acting as the country’s export credit agency. The catholic charity CAFOD, which commissioned the research, argues that this is undermining progress made by other departments in tackling climate change, as well as international targets set out in the Paris Agreement.

http://www.theactuary.com/news/2017/08/uk-undermining-climate-change-targets-by-...


Dakota Access Pipeline Owner Sues Enviros for Terrorism

(BankTrack, Nijmegen, 22 August 2017) BankTrack has taken note of the outrageous allegations in the lawsuit that ETP/ETE has filed against BankTrack, Greenpeace International, Greenpeace Inc., Greenpeace Fund, Inc., Earth First!, and other organizations and individuals that together opposed the Dakota Access Pipeline Project. BankTrack vehemently rejects all accusations brought forward by ETP/ETE. BankTrack considers the lawsuit an attempt of ETP/ETE to silence civil society organisations, and to curb their crucial role in helping to foster business conduct globally that protects the environment, recognises the rights and interests of all stakeholders, and respects human rights. This attempt is bound to fail.

https://www.banktrack.org/news/banktrack_sued_by_etpete_for_campaigning_against_...


Germany is reviewing export credit guarantees for German companies doing business with Turkey

(Spiegel, Ankara, 1 August 2017) As Germany and Turkey struggle with the increasingly strained state of their relationship, Turkish Deputy Prime Minister Mehmet Simsek stresses the two countries' longstanding friendship in an interview with DER SPIEGEL. He also says it is Ankara's duty to rid the state of terrorist elements. The German government has announced a change of course in its policy towards Turkey. For a start, it will be reviewing export credit guarantees for German companies doing business with Turkey. Simsek noted that "Germany is the leader of the EU. We take what Germany says seriously. But the reaction of the German government clearly appears to be based on false information." Turkish authorities gave Germany's Federal Criminal Police Office (BKA) a list of nearly 700 companies that supposedly support terrorism, including Daimler and BASF.

http://www.spiegel.de/international/europe/interview-with-turkish-deputy-prime-m...


UK Export Finance Publishes Their Annual Reports and Accounts

(Manufacturing & Engineeing Magazine, London, 3 August 2017) UK Export Finance, or UKEF, the Government and UK export credit agency has released a report for their transactions of the past year. The published material shows that the Government supported around £458 million of sales overseas for manufacturers. According to the report and figures that have been published, the UKEF provided support to the value of £3 billion for exports from UK manufacturers. The figures show that 79% of the companies that have benefitted from this support over the course of the 2016-17 year were small and medium sized enterprises. The UKEF supported companies by offering finance and insurance which according to the figures released, has allowed 221 companies the opportunity to export their goods to 63 different countries around the world. The most recent OECD cash flow statistics for most OECD ECAs is for 2015 and the OECD breakdown of ECA sectoral activities is a series of very broad stroke graphs covering the entire period from 2005 to 2014.

http://www.memuk.org/business/government/uk-export-finance-published-annual-repo...


Iran Has a Long Way to Go to Restore Pre-Sanctions Ties

(Financial Tribune, Tehran, 14 August 2017) Trade with Italy is being restored slower than expected following the removal of international sanctions against Iran over its nuclear program, reads an opinion piece written by Iranian co-chair of Iran-Italy Chamber of Commerce in the news portal of Tehran Chamber of Commerce, Industries, Mines and Agriculture. In addition, Iran Aseman Airlines says business sources have informed it that undecided roles inside the US Treasury Department have delayed the issuance of licenses for the sales of jets the airline has ordered from global planemakers... The airline said in June that it expected Treasury permits to come as soon as a few weeks. However, the licenses for this order, as well as others whose agreements have been signed or are soon to be signed with Boeing, Airbus and other global aircraft manufacturers are still awaiting a go-ahead by the US. Meanwwhile the Swedish-Iranian Chamber of Trade and Commerce is organizing the First Nordic Iranian Business Summit and Expo in Stockholm. The summit is scheduled for November 20-21, 2017, and the expo for February 16-18, 2018, according to the events' website. Hosting companies and delegations from Sweden, Norway, Finland, Denmark and other European countries as well as Iran, the events are aimed at introducing investment opportunities in Iran's infrastructure, ICT, mining & steel, health & pharmaceuticals, banking & finance, environment and energy.

https://financialtribune.com/articles/economy-domestic-economy/70261/italy-has-l...


GAO: Status of Ex-Im End-Use Monitoring of Dual-Use Exports

(GAO, Washington, 29 August 2017) Every year, the Government Aaccountability Office (GAO) reports on the Export-Import Bank, which helps finance U.S. companies' exports. The Bank may not finance defense goods and services, but it can finance exports that have both civilian and military uses (dual use). The Bank monitors the use of these exports to ensure that they are used mostly for civilian purposes. This year, the Bank determined that dual-use exports were in compliance with this policy. However, it made its determination about satellites sold to the Mexican government before receiving all required information. It was also late completing its determination about construction equipment sold to the Cameroon military. The full report is available here. (pdf)

http://www.gao.gov/products/GAO-17-730R


Trump gives Ex-Im pick a chance to rescue nomination

(Politico, Washington, 2 August 2017) President Donald Trump is giving former Rep. Scott Garrett a chance to save his nomination to lead the Export-Import Bank just weeks after the president privately questioned the appointment amid intense pushback from business groups. The New Jersey Republican’s confirmation has been in doubt for months amid concern about his record in Congress, where he led efforts to try to kill the bank and took positions on LGBT issues that unnerved his corporate backers. An administration official said Trump has “given Garrett an opportunity” to try to prove he can secure enough votes in the Senate. The president has underscored his support for Garrett in conversations with conservative lawmakers, a second administration official said. “He’s looking to get a reformer in there,” the second official said, adding that Trump hopes Garrett can change the agency. The administration itself is developing a plan to make sweeping changes to the bank, officials said. But it's unclear when they will be unveiled publicly.

http://www.politico.com/story/2017/08/02/trump-import-export-garrett-241270


EDC backed Bombardier sale to Zuma allies accused of corruption

(Globe & Mail, Johannesburg, 3 August 2017) The Canadian government's export agency gave $41-million (U.S.) in financing to help Bombardier Inc. sell a luxury jet to the controversial tycoons at the heart of a South African scandal over alleged high-level corruption, leaked e-mails show. Export Development Canada, a Crown corporation, provided the money to a company owned by the Gupta family to help it buy a $52-million Global 6000 jet from Bombardier, the e-mails show. The powerful Gupta family, which has close connections to South African President Jacob Zuma and a business partnership with the President's son, is embroiled in an escalating scandal over widespread allegations of corruption and political influence. The scandal has forced Mr. Zuma to face a non-confidence vote in Parliament on Aug. 8. Critics are asking how the $41-million (U.S.) financing deal was authorized by Export Development Canada, since the borrowers – the politically powerful Gupta family of South Africa – have been surrounded by corruption allegations and investigations for the past seven years. But EDC says it cannot explain anything about the transaction.

https://beta.theglobeandmail.com/news/world/canada-financed-sale-of-bombardier-j...


Massive Nigerian investments coming with ECA and local financing

(African Business Magazine, London, 4 August 2017) Nigeria's Dangote Industries conglomerate has announced massive plans to expand into oil refining as well as large-scale agro processing with financing from local banks and the Central Bank of Nigeria providing working capital finance and own equity and export credit agencies financing equipment – sugar mills, coal generation power plant, ethanol distillery, paddy parboiling equipment, rice milling, polishing & sorting equipment, rice husk power plant, silos, etc.

http://africanbusinessmagazine.com/interviews/massive-investments-agriculture-oi...


What's New July 2017

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.

  • G20 public finance for fossil fuels 'is four times more than renewables'
  • Russia's $70 Billion ‘Secret’ Export Credit Spending Lets Money Do the Talking
  • Is EDC complicit in support of foreseeable human rights violations?
  • White House under pressure to drop Export-Import Bank nominee
  • Global export credit falls amid US Exim wipeout
  • Turkey’s growing repression leads to review of German ECA guarantees
  • Eximbank of Korea to finance gas field development project in Mozambique
  • UK government signs deal with major banks and contractors to raise exports post-Brexit
  • SACE’s support for exports grows, reaches €7.8 billion in H1
  • Norway launches new ECA backing in push for diversity

G20 public finance for fossil fuels 'is four times more than renewables'

(Guardian, London, 5 July 2017) The G20 nations provide four times more public financing to fossil fuels than to renewable energy, a report has revealed ahead of their summit in Hamburg, where Angela Merkel has said climate change will be at the heart of the agenda. The authors of the report accuse the G20 of “talking out of both sides of their mouths” and the summit faces the challenge of a sceptical US administration after Donald Trump pulled out of the global Paris agreement. The new report by a coalition of NGOs found that the G20 countries provided an average of $71.8bn of public finance for fossil-fuel projects per year between 2013-2015, compared with just $18.7bn for renewable energy. Japan provided the most at $16.5bn per year, which was six times more than it allotted for renewables. China, which is curbing its coal use and increasingly being seen as a climate leader, provided $13.5bn for fossil fuels but just $85m for green energy. Germany, also seen a climate leader, provided $3.5bn of public finance for fossil fuels, compared with $2.4bn for renewables. Britain provided $972m for fossil fuels, compared with $172m for renewable energy. The public finance comes in the form of soft loans and export credit guarantees from governments, and, along with huge fossil fuel subsidies, makes coal, oil and gas plants cheaper, and locks in carbon emissions for decades to come...  The Natural Resources Defence Council has noted that most of these emissions don’t count towards the G20's carbon footprint as they are funding coal projects abroad.

https://www.theguardian.com/world/2017/jul/05/g20-public-finance-for-fossil-fuel...


Russia's $70 Billion ‘Secret’ Export Credit Spending Lets Money Do the Talking

(Bloomberg, Moscow, 25 July 2017) As state secrets go, Russia’s program of export finance and loans to other nations might be one of the worst kept. While discussions about aiding cash-strapped allies frequently spill into the open, the Finance Ministry’s debt chief Konstantin Vyshkovsky says information about individual loans isn’t public and a budget addendum on state financial and export credit is classified as “secret.” But, speaking in an interview at his office a short walk from the Kremlin, Vyshkovsky said Russia has committed about $70 billion in total to such loans [over 20+ years?], a figure that hasn’t been disclosed before... The vast majority of money made available by the government covers export finance, with the borrower getting Russian products and services and a domestic company receiving the funds. Nuclear projects account for 90 percent of the $70 billion total in state loans, followed by the defense industry and civil aviation, according to Vyshkovsky.

https://www.bloomberg.com/news/articles/2017-07-25/russia-s-70-billion-secret-sp...


Is EDC complicit in support of foreseeable human rights violations?

(Globe and Mail, Toronto, 21 September 2016) In 2015 Netsweeper Inc. of Waterloo Ontario, with support from Export Development Canada, sold Internet filtering technology to the government of Bahrain — a country criticized internationally for widespread suppression of human rights defenders through censorship, surveillance, arbitrary detention and torture. In 2016 Bahrain started using Netsweeper's Web-filtering software to keep a lid on dissent, a University of Toronto report said. It added that the Sunni-dominated monarchy is going so far as to use the software to deny Bahrain’s majority Shia citizens access to basic information about their religion and religious leaders. In 2015, the Netsweeper's software was also reported as being used to cut Yemen’s citizens off from learning about the civil war surrounding them. Following a February 2017 submission from ECA Watch member Above Ground which called for the adoption of regulatory and policy measures to ensure Canada is not complicit in foreseeable human rights violations associated with the use of digital censorship and surveillance technologies supplied by Canadian companies, EDC was called to to testify before Canada's Senate human rights committee. In their testemony, EDC stated that, at this point, the guarantee that is the subject of the complaint is no longer in place, nor is the company a customer of EDC.

https://www.theglobeandmail.com/news/national/bahrain-using-canadian-software-to...


White House under pressure to drop Export-Import Bank nominee

(Politico, Washington, 17 July 2017) President Donald Trump is standing behind former Rep. Scott Garrett, his choice to head the Export-Import Bank, amid escalating pressure from business groups to pull the plug on the nomination. His record has driven businesses that rely on the agency to try to stop his nomination, even though they also want the Senate to confirm nominees who would fill out its board. During his career in Congress, Garrett was one of the most outspoken critics of the bank. In 2015, he said the agency “embodies the corruption of the free enterprise system.”  The bank has been unable to approve deals worth more than $10 million because of a lack of a quorum. Three Democratic Senators have argued that “If confirmed as chairman of the board, Mr. Garrett would have wide latitude to control the board’s agenda and substitute his personal views for the statutory mission of the bank, destroying it from within after failing in his efforts to persuade his colleagues to legislate its demise”. Trumps new communications officer Anthony Scaramucci was a senior vice-president and chief strategy officer at the Export-Import Bank.

http://www.politico.com/story/2017/07/17/scott-garrett-trump-export-import-bank-...


Global export credit falls amid US Exim wipeout

(Global Trade Review, London, 12 July 2017) Medium and long-term export credit activity nosedived among OECD countries in 2016, led by a massive decline in activity at US Exim. With notable exceptions (including France, Italy, Sweden and the UK) export credit volumes declined in many major markets. Most obviously, there was a 97% fall in support from US Exim, Japanese agency support dropped by 63%, backing from Euler Hermes in Germany was down 39%, while the numerous Korean agencies saw their export credit support fall by 23%. The Competitiveness Report by US Exim outlines the “sluggish global export growth of around 2% last year”, along with “massive market liquidity” around the world, which led to historic levels of activity from specialist financiers, such as private export credit insurers. However, the fact that US Exim spent much of the year in liquidation, and has yet to be revived under the US President Donald Trump (although he has voiced unexpected support for the export credit agency [ECA]) are the primary reasons for its lack of action. These issues are not alluded to in the report, which does not mention the US president once in 68 pages.

https://www.gtreview.com/news/americas/global-export-credit-falls-amid-us-exim-w...


Turkey’s growing repression leads to review of German ECA guarantees

(The Telegraph, Berlin, 21 July 2017) Germany announced a series of hardline measures against Turkey on Thursday amid rapidly deteriorating relations between the two Nato partners. Sigmar Gabriel, the German foreign minister, accused the Turkish government of the “arbitrary” arrest of German citizens on its soil and demanded their immediate release. In a series of measures that could threaten the fragile Turkish economy, he issued tough new travel advice for Germans on visiting the country, and ordered a review of export credit guarantees for German companies investing in Turkey. He also said Germany would seek a review of €630m (£560m) of aid Turkey currently receives each year from the EU, and of Turkey’s partial membership of the customs union.

http://www.telegraph.co.uk/news/2017/07/21/angela-merkel-backs-hardline-policy-t...


Eximbank of Korea to finance gas field development project in Mozambique

(Club of Mozambique, Maputo, 30 June 2017) The Export-Import Bank of Korea announced on June 27 that it has signed a project financing contract on June 26 for offshore gas field development in Mozambique. The gas field development project is a joint project of the Korea Gas Corporation, Exxon Mobil, Italian energy company Eni and Empresa Nacional de Hidrocarbonetos (ENH) of Mozambique. The signing ceremony was held in Rome, Italy. In the project, the eight institutions including the Export-Import Bank of Korea, the Korea Trade Insurance Corporation and the Export-Import Bank of China are scheduled to provide a total of US$5 billion as creditors. According to the contract, the Export-Import Bank of Korea is responsible for one-fifth of the amount. NGOs have noted that the proposal to construct the onshore liquefied natural gas plant could result in the relocation of thousands, the destruction of fragile coral reefs, and greenhouse gas emissions equivalent to an estimated 5.2m metric tonnes of carbon dioxide each year.

http://clubofmozambique.com/news/eximbank-of-korea-to-finance-gas-field-developm...


UK government signs deal with major banks and contractors to raise exports post-Brexit

(Bloomberg, London, 13 July 2017) Five of the U.K.’s leading retail banks have pledged more financial support for small British exporters, with government backing, as Prime Minister Theresa May’s administration prepares the country for life after Brexit. The U.K. said its export credit agency reached an agreement with Barclays, HSBC, Lloyds Banking Group, RBS/NatWest and Santander UK Plc to provide export-related trade finance, for example working capital loans and bonds required by overseas buyers, backed by government guarantees. The extra help for British companies to export is part of the U.K. government’s effort to prepare the economy for leaving the EU. Currently, the UK is lagging behind a number of European countries where exports are concerned – such as Germany – and there are worries that trade from UK businesses could weaken following last year’s EU referendum result. UKEF’s credit risk appetite was doubled to £5 billion by the government at the last Autumn Statement and the Department for International Trade (DIT) has set up a ‘Team UK’ construction consortia to bid for overseas contracts. Infrastructure Exports UK will bring together 17 leading UK construction firms and consultants which, individually, have worked on large-scale global projects. IE: UK board members will meet three times a year to choose the projects they wish to bid for as a single business, with government support.

https://www.bloomberg.com/news/articles/2017-07-11/u-k-retail-banks-to-offer-mor...


SACE’s support for exports grows, reaches €7.8 billion in H1

(Italy/Europe 24, Rome, 26 July 2017) Italian export credit agency SACE is continuing to boost Italian companies abroad. Along with SIMEST – the other export and internationalization arm of state holding CDP – the SACE agency led by Alessandro Decio closed the first six months of this year with €7.8 billion of financial resources mobilized, up 19% compared to the same period of 2016.

http://www.italy24.ilsole24ore.com/art/business-and-economy/2017-07-25/italian-e...


Norway launches new ECA backing in push for diversity

(Global Trade Review, London, 5 July 2017) Norwegian export credit agency Giek has launched a new lender guarantee for export-related investments in Norway. The new product will provide guarantees to banks that finance corporate investment in Norway, where the investment directly or indirectly leads to exports. Aimed at boosting diversity in the oil and gas-rich nation, the guarantees will not be applicable to oil and gas processing plants, tourism, real estate development and large infrastructure projects.

https://www.gtreview.com/news/europe/norway-launches-new-eca-backing-in-push-for...


What's New June 2017

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.

  • Report: Why and how the Dutch government must exclude credit support for fossil fuel
  • EDC’s response to alleged abuse in Colombian oilfields highlights deficits in due diligence
  • New database reveals world’s biggest coal plant developers
  • Kuwait Seals US$6.25bn Loan in Largest ECA-Backed Corporate Transaction Ever
  • Yamal LNG raises more financing with coverage by Swedish and German ECAs
  • Italy's Eni signs LNG deal in Mozambique with ECA support
  • EXIM Banks of India and Korea sign MOU for export credit of USD 9 billion
  • Boeing strikes deal with Italian export credit agency in lieu of Ex-Im Bank
  • Trump sends Export-Import Bank nominees to Senate
  • Iran ECA Finance Talks Making Headway

Report: Why and how the Dutch government must exclude credit support for fossil fuel

(Both ENDS, Amsterdam, 14 June 2017) Export Credit Agencies (ECAs) are key institutions governments employ to support private companies doing business overseas. ECAs offer a wide range of guarantees and insurances to private companies. This makes it easier for these companies to gain access to finance, mostly from banks. Based on publicly available data, this report concludes that the Dutch Export credit agency Atradius DSB, which provides export insurances on behalf of the Dutch state, insured fossil fuel-related projects with a total value of € 7.3 billion in the period 2012-2015. This is two-thirds of its total insured value for that same period.

http://www.bothends.org/en/Publications/document/184/Paris-Proof-Export-Support-...


EDC’s response to alleged abuse in Colombian oilfields highlights deficits in due diligence

(Above Ground, Ottawa, 14 June 2017) Our latest correspondence with Export Development Canada (EDC) about the impacts in Colombia of two oil companies it financed highlights our longstanding concerns about the adequacy and transparency of the agency’s human rights due diligence practices. Last fall, following the release of a report documenting serious human rights abuses associated with the operations of EDC clients Pacific Exploration & Production and Ecopetrol in Colombia’s Rubiales and Quifa oilfields, we joined the report authors[1] in writing to EDC to express our concern. We asked the agency whether it was aware of the substantial risks associated with oil development in the region when it decided to finance the two companies, and how it would respond to the reported violations of indigenous, labour and environmental rights connected to its clients’ activities.[2] Export Development Canada’s letter of reply neglected to provide any substantive answer to these questions. As we note in our response to EDC, it remains unclear how the agency will address reported abuses associated with its clients’ activities — including the violation by Pacific E&P of Colombian law governing consultation with indigenous peoples, as determined by a 2015 court ruling. It also remains unclear how EDC will ensure that its clients remediate the harms caused, provide redress, and prevent their operations from heightening the serious risks to local community leaders who’ve spoken out critically about the companies’ activities and now face death threats.




New database reveals world’s biggest coal plant developers

(Banktrack, Berlin 29 June 2017) The environmental NGO urgewald and its partners have revealed which companies are at the forefront of plans to expand the world’s coal-fired power capacity by a staggering 42.8%. urgewald’s previous in-depth research played a key role in initiating the coal divestment actions of the Norwegian Government Pension Fund and the insurance company Allianz.

http://mailchi.mp/banktrack/press-release-new-database-reveals-worlds-biggest-co...


Kuwait Seals US$6.25bn Loan in Largest ECA-Backed Corporate Transaction Ever

(Bonds & Loans, London, 13 June 2017) Kuwait National Petroleum Company’s (KNPC) US$6.245bn ECA-backed loan includes plans to modernise the Mina Al Ahmadi oil refinery located in Al Ahmadi Governorate, south of the country, to make it meet stringent environmental requirements.

http://www.bondsloans.com/news/article/1471/case-study-knpc-seals-us625bn-loan-i...


Yamal LNG raises more financing with coverage by Swedish and German ECAs

(Your Oil & Gas News, Edinburgh, 1 June 2017) Yamal LNG announced the signing of agreements with several European banks, inter alia Raiffeisen Bank International AG and Intesa Sanpaolo for up to 425 million with insurance coverage provided by the Swedish export credit agency EKN and the German export credit agency Euler Hermes. Yamal LNG has previously received financing from the National Welfare Fund of Russia, signed agreements on credit lines with Sberbank and Gazprombank, as well as with the China Development Bank and the Export-Import Bank of China, the Japan Bank for International Cooperation (JBIC) and the bank Intesa Sanpaolo with insurance coverage by the Italian export credit agency SACE and the French export credit agency COFACE. In June 2015 WWF Russia noted that the Environmental and Social Impact Assessment of the project, while complying with the best Russian practices were not complete regarding a number of issues and that certain ESIA strategic conclusions required additional discussions and consultations.

http://www.youroilandgasnews.com/yamal+lng+raised+financing+with+insurance+cover...


Italy's Eni signs LNG deal in Mozambique with ECA support

(Reuters, Maputo, 1 June 2017) Italian energy company Eni signed an $8 billion deal on Thursday to develop a gas field off the coast of Mozambique, the first of a series of projects that could transform the poor African nation into a major energy supplier to Asia. Developing the Coral South field requires building six subsea wells connected to a floating facility capable of producing about 3.4 million tonnes of liquefied natural gas (LNG) per year. Eni said project finance would fund 60 percent of the cost of building the floating LNG facility, while the financing agreement has been subscribed by 15 major international banks and guaranteed by five export credit agencies [Export-Import Bank of China, Coface of France, Export-Import Bank of Korea (Kexim), Korea Trade Insurance Corporation, and SACE of Italy] The floating LNG platform will be built in South Korea by a consortium led by Samsung Heavy and including France’s Technip and Japan’s JGC.

http://www.reuters.com/article/us-eni-mozambique-idUSKBN18S6AW


EXIM Banks of India and Korea sign MOU for export credit of USD 9 billion

(OpenGovAsia, Singapore, 16 June 2017) The Export-Import Bank of India (EXIM Bank) and the Export-Import Bank of Korea (KEXIM) have signed a Memorandum of Agreement (MoU) for export credit of USD 9 billion to support infrastructural development in India and for the supply of goods and services as part of projects in third countries.

http://www.opengovasia.com/articles/7712-exim-banks-of-india-and-korea-sign-mou-...


Boeing strikes deal with Italian export credit agency in lieu of Ex-Im Bank

(Seeking Alpha, Ra'Anana Settlement Israel, 31 May 2017) Boeing has sealed a deal for Italy's export credit agency to provide an initial $1.25B/year in guarantees for jetliner sales, partly to fill the void left by the U.S. Export-Import Bank, which has been restricted since July 2015 when some lawmakers blocked the appointment of a new board. Dow Jones reports that the new agreement with Italy's Sace is the first between Boeing and an overseas export credit agency and provides a template for the company to secure similar deals with other countries that supply large parts of its jetliners.

https://seekingalpha.com/news/3270788-boeing-strikes-deal-italian-export-credit-...


Trump sends Export-Import Bank nominees to Senate

(Defense News, Washington, 20 June 2017) U.S. President Donald Trump has formally nominated former members of Congress, Scott Garrett and Spencer Bachus, to two vacant positions on the U.S. Export-Import bank as expected, a win for the defense and aerospace sector.  Trump announced the move in April — a reversal after calling the federal government’s export credit agency “excess baggage” in 2015. Though the Heritage Foundation and some free-market conservatives have criticized the Ex-Im Bank as subsidizing foreign competitors of U.S. firms, the Aerospace Industries Association, touted it as vital to small- and medium-size companies. Among the largest export beneficiaries of the bank’s financial assistance have been Boeing and General Electric, which have overseas customers that use the agencies' government-backed loans to buy their products.

http://www.defensenews.com/articles/trump-sends-export-import-bank-nominees-to-s...


Iran ECA Finance Talks Making Headway

(Financial Tribune, Tehran, 19 June 2017) Iran has held negotiations with Italy’s Medibank and SACE export guarantee for €2 billion ($2.24 billion), Exim Bank of China for $30 billion, China Development Bank for $15 billion, Korea Export–Import Bank for $8 billion and Korea Trade Insurance Corporation for $5 billion to receive foreign financing. Other parties involved in finance negotiations with Iran include Japanese Nippon Export and Investment Insurance and the Japanese Ministry of Finance for $10 billion, the Japan International Cooperation Agency for €1.2 billion ($1.34 billion), Russian Ministry of Economic Development for €5 billion ($5.6 billion) and the Norwegian Guarantee Institute for Export Credits for €1 billion ($1.1 billion). Euler Hermes of Germany is also interested in covering investments in Iran. However, a lack of full-fledged banking ties between Iran and Europe is preventing the complete benefits of the German sovereign guarantee to be felt by Iran.

https://financialtribune.com/articles/economy-business-and-markets/66707/iran-fi...


Madagascar is Afreximbank’s Newest Participating State

(Afreximbank Cairo, 26 June 2017) Madagascar has become the latest country to join the African Export-Import Bank (Afreximbank) as a participating state. Membership of the Bank gives Madagascar automatic access to the full range of products and facilities offered by Afreximbank, including trade finance facilities, project finance services, trade information and advisory services, support in the development of a local content policy and assistance in developing and implementing industrial parks and special economic zones.

https://afreximbank.com/madagascar-is-afreximbanks-newest-participating-state/


What's New May 2017

"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?

Indonesian Community Reps File Cirebon Coal Plant Objections with JIBC

(Friends of the Earth Japan, Tokyo, 24 May 2017) On May 24, 2017, two Indonesian community representatives affected by the JIBC supported Cirebon Coal-fired Power Plant Project in West Java arrived in Japan and handed their objections to the Japan Bank for International Cooperation (JBIC) with respect to the expansion of the Unit 2 power plant (1,000 MW). At the same time, Indonesian and Japanese NGOs filed their complaints with the Japanese National Contact Point (NCP) under the OECD Guidelines for Multinational Enterprises (MNEs). Japanese public and private sectors, including Marubeni and JERA as investors, have pushed through the project despite already serious damages to the livelihoods of the local community and the April 19 revocation of its environmental permit by the District Court in Bandung.

http://www.foejapan.org/en/aid/170524.html


World Coal: IEA CCC Report - Global financing for coal power goes East

(World Coal, Surrey, 19 May 2017) Development finance is essential to help the advancement and empowerment of low and middle income economies. But, past announcements by multilateral development banks restricting finance for greenfield coal plants cast doubts on future funding. This approach to coal investments spread to other development agencies and also became a foundation for the rules governing OECD export credits (pdf). A new report from the IEA Clean Coal Centre by Paul Baruya, Trends in international lending for coal-fired power plants, examines the implications of these announcements and explores the roles and policies of different financial institutions. In 2014 alone, US$152 billion of funding was received by the coal power and mining sectors from such institutions. Of this total, just US$9 billion was provided by multilateral development banks and export credit agencies. Thus these publicly financed institutions make a minor contribution to direct funding of coal projects, although they maintain a role in attracting commercial funding to higher risk projects.

https://www.worldcoal.com/power/19052017/iea-ccc-global-financing-for-coal-power...


Turkey in 'final phase' of secretive Saudi arms export deal

(Defense News, Ankara, 3 May 2017) Turkey’s defense and procurement officials are expecting to finalize a large defense export contract with Saudi Arabia, but its contents will be kept top secret. Turkish Defence Minister Fikri Isik has said the defense export contract with Saudi Arabia will be the largest-ever single export deal for the Turkish industry...  Turkey, he said, would launch a new export lending mechanism outside the scope of Eximbank loans in order to finance Turkish exports. Eximbank is a state-owned export credit bank in Turkey. The Minister said his government was working on a broad plan to boost Turkish defense and aerospace exports. He admitted that financing was often a major problem for potential markets.

http://www.defensenews.com/articles/turkey-in-final-phase-of-secretive-saudi-exp...


N.J. critic of Export-Import Bank appointed to overhaul federal credit agency

(National Public Radio Newsworks, Delaware, 16 May 2017) Republicans who want to disband the Export-Import Bank of the United States were heartened during the presidential campaign when candidate Donald Trump indicated he would kill it if he were elected president. Now, President Trump said he supports the bank and the micro-financing it gives U.S. companies. Republican Ryan Costello and other lawmakers from the Delaware Valley are in that corner as well, but are now perplexed by the President's tapping of former U.S. Rep. Scott Garrett to serve on the  bank's board. Garrett, a founding member of the very conservative House Freedom Caucus, has long been a critic of the bank — even voting against its reauthorization. Democrats fear Garrett and Trump are trying to undermine the bank from within. Democrat Brendan Boyle said it's difficult to discern whether Trump is being devious or if he just doled out a favor to a loyalist who recently lost a bid for re-election. "It could just be that there's no forethought in this whatsoever,” Boyle said.

http://www.newsworks.org/index.php/local//item/103984-nj-critic-of-export-import...


Airbus tightens fraud controls

(Air Transport World, Arlington, 22 May 2017) Airbus has established a new independent compliance review panel (ICRP) to ensure “irreproachable” behavior, following allegations of fraud, bribery and corruption in its civil aviation business. The move follows an investigation by the UK Serious Fraud Office (SFO) and France’s Parquet National Financier (PNF), after Airbus self-disclosed misstatements and omissions found a year ago. Revelations started emerging in April 2016, when the UK Export Finance (UKEF), Britain’s export credit agency (ECA), placed a temporary hold on all guarantees and credit export support of Airbus products. Coface, the French ECA, and Euler Hermes, the German ECA, followed within days. The probe is focused on alleged misuse of third-party agents and European export credit by Airbus.

http://atwonline.com/manufacturers/airbus-tightens-fraud-controls


Iran in talks with UK export credit agency over jetliner export funding

(Reuters, Paris, 4 May 2017) Iran is in talks with Britain's export credit agency to facilitate the financing of aircraft sales to state airline IranAir as part of its pact with world powers to lift sanctions over its nuclear program, a senior Iranian official said. IranAir's plan to buy more than 180 jets from Airbus and Boeing is the most visible economic deal on the table after major powers last year lifted most sanctions on Iran in return for restrictions on its nuclear activities. But financing for the purchases has been hard to secure because most Western banks are holding back, concerned about the future of the 2015 agreement after U.S. President Donald Trump called it a bad deal and ordered a review. So far, IranAir has taken delivery of just three Airbus jets, for which it paid cash, industry sources say. Meanwhile, other news reports say that Theresa May’s snap decision to hold general elections in June discourages Britain’s export credit arm from taking defining decisions affecting foreign policy during such a critical time. The government is also likely to postpone dealing with the issue until after the elections. Meanwhile, the Iranian government was under immense pressure to show results of the Nuclear Deal before the country’s elections in May. The Slovakian and Finnish ECAs have also signed deals with Iran.

http://www.reuters.com/article/us-iran-britain-financing-exclusive-idUSKBN1800VW


China's Export Credit Agency Covering Iran Investment

(Financial Tribune, Tehran, 9 May 2017) China Export & Credit Insurance Corporation (Sinosure) will provide export insurance for Chinese construction and production investments in Iran. According to a recently signed Meorandum of Understanding, the Chinese export credit agency will insure state-owned and private Chinese companies that intend to invest in Iranian projects, enabling them to use new lines of credit, particularly for the export of high-value added goods from China. Prior to this, the entity had provided credit lines and export insurance for mining and refinery projects in Iran.

https://financialtribune.com/articles/economy-business-and-markets/64046/chinas-...


Like spring weather, Delta’s positions on EXIM change quickly and dramatically

(eTurbo News, Hawaii, 11 May 2017) A recent high-profile example of Delta’s advocacy agility was its position on export credit financing and reauthorization of the Export-Import Bank (EXIM). Delta opposed it before it supported it. In the beginning, Delta was a leading voice opposing reauthorization of the EXIM. It was a visible and vocal member of the chorus decrying export credit financing as inherently bad public policy and crony capitalism. Delta claimed it was chased out of the US-India market by EXIM lending to Air India to purchase Boeing 787 Dreamliners. Simultaneously, it spent millions of dollars repeatedly suing EXIM seeking to use the courts to block guarantees for Air India’s 787s. Then Delta pivoted. It claimed it never opposed export credit financing and, after waging a scorched earth lobbying campaign against EXIM, it in fact was prepared to support its reauthorization provided the legislation included an anticompetitive carve-out prohibiting widebody financing for state-owned carriers.

https://www.eturbonews.com/154422/like-spring-weather-deltas-positions-change-qu...


State Bank of India could fund Gautam Adani’s coal mine in Australia

(National Herald, New Delhi, 9 May 2017) Australia's Market Forces environmental finance group has warned that Indian businessman Gautam Adani could turn to the Indian government to get his $21 billion coal mine funded, as Australian and international investors increasingly pull out of the project due to environmental concerns. "The (funding) model now looks like a combination of North Australia Infrastructure Funding (NAIF) funding, State Bank of India (SBI) and foreign export credit providing the bulk of the debt. The remainder would likely rely heavily on Indian commercial banks that Adani has a close relationship with, and some other foreign commercial banks that have not yet ruled out finance," Julien Vincent, the Executive Director at Market Forces, told National Herald, replying to an emailed questionnaire. Taxpayers in Australia and India are most likely to fill the funding gap that Adani is experiencing, Vincent said.

https://www.nationalheraldindia.com/news/2017/05/09/sbi-could-fund-gautam-adanis...


Kenya’s stake in pan African ECA diluted

(The Star, Nairobi, 8 May 017) Kenya's shareholding in African Trade Insurance Agency has been marginally diluted following entry of four new investors, the largely political risk and investment guarantee firm has said. Chief executive George Otieno said Kenya's stake has dropped to about 12 per cent from 15 per cent. This was after Ethiopia and Zimbabwe joined the pan-African investment and commercial risk insurance provider last year, while Ivory Coast came on board last month. UK’s national export credit agency, UK Export Finance, has also acquired undisclosed stake in ATI, joining African Development Bank and Italian Export Credit Agency as non-state shareholders. “Kenya, however, remains the single largest shareholder in ATI and by some measure the single biggest beneficiary of ATI cover since its inception,” ATI’s chief underwriting officer John Lentaigne said. “We have investments in Kenya equivalent to 15 per cent (about Sh1.08 trillion) of the current GDP (about Sh7.2 trillion) since its (ATI's) inception.” The company was formed by seven African countries, with Kenya as single largest shareholder, in 2001 but started operating fully in 2003. The agency was financially and technically supported by the World Bank Group during its formation.

http://www.the-star.co.ke/news/2017/05/08/kenyas-stake-in-pan-african-firm-dilut...


US Trade Finance for Cuba ‘Much Further Down the Road’ says Ex-Im Bank Officer

(Sputnik News, Washington, 15 May 2017) Trade finance to Cuba is not expected in the near future because of the quantity of work that needs to be completed, including the country's payments due to export credit agencies, US Export-Import Bank (Ex-Im) Business Development Officer Kate Bishop told Sputnik on Monday. "It looks like trade restrictions are easing, but trade finance, which is where we come in, I think that would be much further down the road before it would even be considered," Bishop said on the sidelines of the Fifth Annual Doing Business with the BRICS Conference on Monday.

https://sputniknews.com/business/201705151053637579-us-trade-cuba-exim/


What's New April 2017

"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.

  • In policy reversal Trump names new Ex-Im president
  • Don't fund South African coal mine, activists plead with Australian export credit agency
  • JBIC Must Immediately Review and Repeal its Loan Agreement for Illegal Coal Project
  • German, Swedish, Chinese, Russian, Japanese, Italian and French ECAs support Yamal LNG project
  • Brazil will offer export credit-line for defence products
  • Ex-Im Bank of India confirms $1.6bn loan for Rampal coal plant to bankroll Sundarbans destruction
  • EDC Signals Millions in New Loans for India with the Opening of Singapore Branch
  • Canada's EDC and UK UKEF eye Philippine growth and infrastructure
  • Alba secures $700m in export credit financing
  • Iran, Portugal ECAs Sign Cooperation Deal

In policy reversal Trump names new Ex-Im president

(Deutsche Welle, Washington, 15 April 2017) US President Trump has named Scott Garrett, a conservative Republican former lawmaker, to head the Export-Import (Ex-Im) Bank. Garrett voted to close the official US export credit agency when he was a member of Congress. Trump also named Spencer Bachus, a Republican former congressman from Alabama, to be a member of the Ex-Im board of directors. During last year's presidential election campaign, Trump dismissed the bank as "unnecessary." He alleged in August that "it's sort of a featherbedding for politicians and others, and a few companies." On April 12th, in comments reported by the Wall Street Journal, Trump announced a policy change on Ex-Im, saying: "Actually, it's a very good thing. And it actually makes money, it could make a lot of money." Garrett, a New Jersey Republican, served seven terms in the House of Representatives and voted in 2012 and 2015 against renewing the Ex-Im charter. A founding member of the Freedom Caucus and reported to have made a series of anti-gay remarks, Garrett was defeated in the November elections. Speaking about Ex-Im at a congressional hearing in 2014, Garrett said "when you mix big corporations and taxpayer-backed guarantees, you get a little something that looks an awful like crony capitalism." In a tweet in October 2015, Garrett described the bank as a "corporate welfare program."

http://www.dw.com/en/in-policy-reversal-president-trump-names-new-president-for-...


Don't fund South African coal mine, activists plead with Australian export credit agency

(Guardian, London, 6 April 2017) Environmental action groups including Greenpeace, Oxfam and GetUp have signed an open letter to Australia’s export credit agency asking it not to fund a controversial new coal mine. The groups say a loan to the proposed Resgen Boikarabelo mine in South Africa will lead to human rights abuses and hinder Australia’s Paris commitment to keep global warming below 2C. The open letter to the Efic Board of Directors from civil society organizations led by ActionAid and Jubilee Australia, and representing some 2 million Australians all together, expressed their belief that by funding this coal mine, Efic is at risk of funding human rights abuses in South Africa.

https://www.theguardian.com/australia-news/2017/jan/17/australia-export-credit-a...


JBIC Must Immediately Review and Repeal its Loan Agreement for Illegal Indonesian Coal Project

(Friends of the Earth Japan, Tokyo, 19 April 2017) Following objections from local affected villagers, on April 19th the regional court in Bandung, West Java revoked the environmental permit for the 1000MW Cirebon coal-fired power plant expansion plan known as Cirebon 2 (which Marubeni and JERA invested in). The Japan Bank for International Cooperation (JBIC) had concluded a loan agreement for Cirebon 2 on April 18, the day immediately before the court verdict was due. JBIC now must sincerely take into account the local villagers’ rights and the judicial decision in the host country. JIBC must immediately review and repeal its decision to provide financing for Cirebon 2, as the project is illegal according to local law and in violation of the “JBIC Guidelines for Confirmation of Environmental and Social Considerations” (Guidelines) which require “the compliance with environmental laws of the host nation and local governments concerned” and “the submission of environmental permit certificates issued by the host governments.”

http://www.foejapan.org/en/aid/170419.html


German, Swedish, Chinese, Russian, Japanese, Italian and French ECAs support Yamal LNG project

(Kyiv Post, Moscow, 21 April 2017) The German and Swedish export credit agencies have decided to take part in the Yamal LNG project, Novatek CEO Leonid Mikhelson said during the annual general meeting of shareholders. The cost of the project is $27 billion. Yamal LNG has signed credit agreements for the equivalent of $12 billion with China Development Bank (CDB) and the Export and Import Bank of China (CEXIM), and the equivalent of $4 billion with Gazprombank and Sberbank. The Japan Bank for International Cooperation (JBIC) will provide €200 million, and Italian bank Intesa Sanpaolo will provide €750 million under coverage from Italian export credit agency Sace and France’s Coface (amounting to €350 million. In addition, Yamal LNG received the equivalent of $2.4 billion from Russia’s National Welfare Fund (NWF). WWF Russia in 2015 noted that the situations on Sakhalin Island, the Yamal Peninsula fields (and, apparently, in the Gydansky Peninsula in future) failed to comply with Item 8.4 of the Environmental Standards for Operations of Oil and Gas Companies Acting in Russia developed in 2004 by non-governmental nature conservation organizations.

https://www.kyivpost.com/russia/mikhelson-german-swedish-export-credit-agencies-...


Brazil will offer export credit-line for defence products

(QUWA, San Francisco, 6 April 2017) Brazil will offer a credit-line to overseas customers of its defence products. The announcement was made by the President of the National Bank for Economic and Social Development (BNDES), Maria Sílvia Bastos Marques, at LAAD 2017, which is taking place at Rio de Janeiro. As per the Brazilian Ministry of Defence’s press release, current schemes are done on an ad hoc basis, but this formal mechanism will coordinate with each of Brazil’s ministries and will boost the competitiveness of the Brazilian defence industry. For example, there is a Defence Group in the Foreign Trade Chamber.
http://quwa.org/2017/04/06/brazil-will-offer-credit-line-defence-exports


Ex-Im Bank of India confirms $1.6bn loan for Rampal coal plant to bankroll Sundarbans destruction

(BankTrack, Nijmegen, 11 April 2017) Ex-Im Bank of India’s confirmation today that it is providing a $1.6 billion loan to Bangladesh-India Friendship Power Company (BIFPCL) for development of the Rampal coal plant in Bangladesh has been strongly criticised by BankTrack. Johan Frijns, director of BankTrack, said: “Ex-Im India’s decision to bankroll the massive Rampal coal plant in Bangladesh, situated right next to the Sundarbans mangrove forest, comes packaged with the claims that ‘state of the art technologies have been selected for this project’, and that ‘all environment concerns related to the project have been addressed’. Yet such statements are completely at odds with the deep concerns held by the Bangladeshi population and the international public, and fly in the face of overwhelming expert opinion to the contrary. Resistance is now set to grow further against the project promoters and the bank.

https://www.banktrack.org/news/exim_bank_of_india_confirms_1_6bn_loan_for_rampal...


EDC Signals Millions in New Loans for India with the Opening of Singapore Branch

(Business Wire, Mumbai, 2 April 2017) Export Development Canada today announced its new and first global branch outside of Canada, in Singapore. “EDC’s new branch can process transactions in real time for Indian companies, eliminating the previous 12 hour delay to connect back to our financing team in Canada,” says Bill Brown, Regional Vice-President, Asia, EDC. “EDC’s financial services are now offered more quickly and effectively, which will significantly benefit Indian companies.” The new Singapore branch is expected to play an important role in doubling EDC’s loan bookings by 2021, when it hopes to be providing over USD 4 billion in new commercial financing annually.

https://finance.yahoo.com/news/export-development-canada-signals-millions-013000...


Canada's EDC and UK UKEF eye Philippine growth and infrastructure

(Philippine Daily Inquirer, Manila, 24 April 2017) As offers of development funding from China and Japan pour in, Canada also wants a bigger piece of the Philippine growth story as its export credit agency Export Development Canada (EDC) seeks more opportunities to fund infrastructure projects and other key industries. In an e-mail interview with the Inquirer, EDC regional vice president for Asia international business development William Brown said EDC was anticipating more Canadian businesses wanting to invest and sell more products to the Philippines as Canadian exporters and investors seek opportunities in emerging markets. EDC recently opened a branch in Singapore to function as its financing hub in Asia. The United Kingdom has offered the Philippines a chance to tap its £4.5-billion export-import facility as a financing option for the Duterte Administration’s massive infrastructure program, the Department of Finance (DoF) said over the weekend.

https://business.inquirer.net/228257/canada-export-bank-eyes-ph


Alba secures $700m in export credit financing

(Trade Arabia, Manama, 16 April 017) Aluminium Bahrain (Alba), a leading aluminium smelter, has secured commitments of about $700 million from Export Credit Agency (ECA) supported facilities to finance Line 6 Expansion project. The facilities are made-up of a dual tranche of c. $310 million and c. EUR315 million ($334 million) SERV Guaranteed Export Credit and c. EUR50 million Euler Herms Guaranteed Export Credit. The SERV-backed facility will fund the company’s Power Station 5 (PS5) wherein General Electric (GE), EPC contractor, will provide three 9HA gas turbines, three steam turbines and three heat recovery steam generators (HRSGs).

https://www.tradearabia.com/index.php?%2Fnews%2FIND_323517_html=


Iran, Portugal ECAs Sign Cooperation Deal

(Financial Tribune, Tehran, 20 April 2017) Export Guarantee Fund of Iran (EGFI) and Portugal’s private insurance firm COSEC signed a memorandum of understanding in Tehran on Tuesday to expand cooperation. The two entities agreed to expand cooperation in co-insurance, reinsurance, credit assessment, claims prevention and recovery of debts that help the exporters of both countries, EGFI reported in a press release. The private insurance COSEC has the mandate to manage the official export credit guarantee scheme on behalf of the Portuguese government. Since the lifting of sanctions, EGFI has been expanding ties with various ECAs and has held talks with institutions across the world, including the United Kingdom Export Finance, Japanese Nippon Export, Investment Insurance Export Credit Guarantee Corporation of India, South Korea’s K-Sure and Italy’s SACE. Iran-Portugal trade stood at $1.76 million during the 10 months to January 20, 2017, Tehran Chamber of Commerce, Industries and Mines’ website reported.

https://financialtribune.com/articles/economy-business-and-markets/62804/iran-po...


What's New March 2017

"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.

  • 280 CSOs from 47 Countries Call on Japanese Government to Reject Support for Indonesian Coal Plants
  • France Joins UK in Airbus Fraud Investigation
  • EC publishes Annual Activity Report on Export Credits
  • Ex-Im Bank Critics Are Undermining Trump's Trade Strategy
  • S. Korean & Chinese ECAs to support hydroelectric dams in Iran
  • Norway export credit institute sees Iran trade opportunity
  • Export credit funds to finance Adani's Australian coal mine project
  • Law firm helps secure Norwegian ECA US$100m facility for massive offshore oil project
  • Uganda: UK Doubles Export Funding to Uganda
  • UK commits US$1.2 billion for funding development projects in Peru
  • Islamic Development Bank sets out roadmap to promote Arab-African trade
  • Export credit to boost Middle East lending
  • Botswana hosts global credit insurance conference
  • South Sudan officially joins Afrexibank
  • Saab & BAE Systems table export credit for Malaysia fighter bid
  • World Bank Project Aims to Help Mongolia Access Export Credits

280 CSOs from 47 Countries Call on Japanese Government to Reject Support for Indonesian Coal Plants

(FOE Japan, Tokyo, 27 March 2017) On March 23, Indonesian and Japanese CSOs submitted an international petition signed by 280 CSOs from 47 countries to the Japanese government, calling on JBIC and JICA not to finance the Cirebon expansion coal-fired power plant (1,000 MW) and the Indramayu expansion coal-fired power plant (1,000 MW), both located in West Java, Indonesia.

http://www.foejapan.org/en/aid/170323.html


France Joins UK in Airbus Fraud Investigation

(AI News, Midland Park, 6 March 2017) France’s Parquet National Financier has joined the UK Serious Fraud Office in an investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group...  The UK agency launched its official investigation last August, following months of deliberation over whether or not to pursue charges related to the manufacturer’s failure to reveal the identity of some intermediaries in applications for export credit financing for certain airline customers... Last April Airbus issued a statement acknowledging it notified the SFO of “certain inaccuracies” in the applications following an internal investigation and that an interruption in UK export funding would likely result. At the time it said expected no interruption in financing from the export credit agencies in France and Germany—the other European countries in which it builds most of its components and assembles airplanes. However, those countries subsequently cut off funding as well in cooperation with the UK agency. Export credit accounted for some 6 percent of funding for Airbus airliners in 2015 and, due to the investigation, virtually none last year. Despite these investigations, Airbus has stated that it "expects to have access to European export credit financing on a 'case by case' basis in 2017"

http://www.ainonline.com/aviation-news/air-transport/2017-03-16/france-joins-uk-...


EC publishes Annual Activity Report on Export Credits

(European Comission, Brussels, 2 February 2017) The European Commission in February 2017 published its "annual" report on the activities of 21 member state's official Export Credit Agencies for the year 2014. ECA Watch notes that, in addition to the two year delay in its issue, the report provides an incomplete and in some respects misleading picture of the activies of official EU ECAs, which we are now reviewing and will comment on.

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52017DC0067


Ex-Im Bank Critics Are Undermining Trump's Trade Strategy

(Forbes, Arlington, 3 March 2017) Loren Thompson of the centre-right Lexington Institute comments on "the dwindling band of Export-Import Bank critics who think America should be the only major trading nation without an export credit agency." He notes that while Ex-Im actually make a profit, most national ECAs actually do susidize national exporters, i.e. distort markets. An interesting view into the ideological battles currently underway in Washington.

https://www.forbes.com/sites/lorenthompson/2017/03/03/ex-im-bank-critics-are-und...


S. Korean & Chinese ECAs to support hydroelectric dams in Iran

(Financial Tribune, Tehran, 14 March 2017) Multibillion-dollar deals have been signed with East Asian companies to develop dam infrastructure in Iran, including a $1.7 billion agreement with South Korea for developing the Bakhtiari hydroelectric dam and a $341 million Sinosure credit line for an hydroelectric dam in the western Lorestan Province as well as an offer of a €290 million Sinosure credit line for Chamshir hydroelectric dam in Kohgiluyeh - Boyer Ahmad Province.

https://financialtribune.com/articles/energy/61409/s-koreans-chinese-companies-t...


Norway export credit institute sees Iran trade opportunity

(IranOilGas, Tehran, 4 March 2017) Officials from the Export Guarantee Fund of Iran and Norwegian Guarantee Institute for Export Credits (GIEK) discussed expansion of ties during a meeting held in Tehran... Commenting on Norway’s $1 billion credit line for covering trade with Iran, Wenche Nistad, GIEK’s chief executive, said: “The plan is still in its early phases; more time is needed for starting such projects as we need to learn more about each other, know more about doing business with Iran and get familiar with Iran’s banking system.”

http://www.iranoilgas.com/news/details?id=17271&title=Norway%20export%20credit%2...


Export credit funds to finance Adani's Australian coal mine project

(Business Standard, New Delhi, 20 March 2017) Leading global financers, export credit funds from China and Korea and international banks which earlier refused to fund the Carmichael coal mine project of the Adani Group are in talks with the Indian conglomerate to fund the project. The company has yet again rubbished the opposition from the climate groups saying this will not impact the funding for the project.

https://www.pressreader.com/india/business-standard/20170320/281608125251170


Law firm helps secure Norwegian ECA US$100m facility for massive Australian offshore oil project

(Austral Asian Lawyer, St. Leonards NSW, 15 March 2017) Global law firm Norton Rose Fulbright has advised on a US$100 mn term loan and guarantee facility which will be used by Woodside for its offshore operations in Western Australia. The facility has export credit support provided by DNB Bank ASA and the Norwegian Export Credit Agencies (ECA)... NRF advised Eksportkreditt Norge AS as lender; DNB Bank ASA as agent and arranger, ECA co-ordinator and ECA guarantor; and Norway’s Guarantee Institute for Export Credits (GIEK) as ECA guarantor on the loan and guarantee facility. The facility will be used to support the delivery of subsea equipment for installation on the seabed to support Woodside’s $1.9bn Greater Enfield project, an offshore oil project which will include up to 14 wells, according to projectconnect.com.au.

http://www.australasianlawyer.com.au/news/nrf-helps-secure-us100m-facility-for-m...


Uganda: UK Doubles Export Funding to Uganda

(All Africa News, Kampala, 27 March 2017) The British government has announced a major increase in the export credit for Uganda, from £300 million (Shs1.35 trillion) to £600 million (Shs2.7 trillion). The new export finance support is made available through UK Export Finance (UKEF), the UK Government's export credit agency which provides competitive finance for UK exports.

http://allafrica.com/stories/201703270339.html


UK commits US$1.2 billion for funding development projects in Peru

(Andina, Lima, 4 March 2017) The United Kingdom will provide US$1.2 billion to Peru to finance infrastructure projects in favor of development, British Ambassador to Lima Anwar Choudhury announced on Friday. Resources will be provided by UK Export Finance (UKEF), the bloc's export credit agency, to finance exports of UK products and services in infrastructure, energy and sanitation sectors, among others. In addition, UKEF will provide an additional US$200 million in funding for the development of projects carried out in cooperation with the Development Bank of Latin America (CAF).

http://www.andina.com.pe/Ingles/noticia-uk-commits-12-billion-for-funding-develo...


Islamic Development Bank sets out roadmap to promote Arab-African trade

(Arab News, Riyadh, 5 March 2017) The Islamic Development Bank (IDB) is developing a roadmap to strengthen Arab-African trade over the next three years, according to Hakim Elwaer, IDB’s official spokesman... At a forum held in Rabat last month it was noted that IDB’s support for development programs and infrastructure projects in Africa has reached more than $43 billion, which included funding for projects in infrastructure. IDB President Bandar Hajjar added that the volume of trade financing granted to Arab and African member countries since the establishment of the International Islamic Trade Finance Corporation (ITFC), which is IDB’s trade financing arm, has reached about $15 billion.

http://www.arabnews.com/node/1063406/saudi-arabia


Export credit to boost Middle East lending

(Bloomberg, Dubai, 2 March 2017)  Middle East borrowers are increasingly using loans backed by export credit agencies to fund projects as tightening liquidity makes conventional borrowing more expensive and difficult to secure, according to Societe Generale SA. France’s second-largest bank by market value is in talks with governments, state-owned and private companies for about twelve loans backed by ECAs for projects including in the energy and oil industries in the Middle East, Richad Soundardjee, regional chief executive officer, said in an interview in Dubai. The lender more than doubled the number of ECA backed loans it helped raise last year, compared with 2015, he said, without revealing the number of loans.

https://www.bloombergquint.com/business/2017/03/08/societe-generale-sees-export-...


Botswana hosts global credit insurance conference

(Mmegi Online, Gabarone, 23 March 2017) The Botswana Export Credit Insurance (BECI) will for the first time host the annual meeting of international credit insurers in Kasane next month. The event, called the Prague Club Committee (PCC) spring meeting, will see around 50 senior participants from 20 international members of the Berne Union gather to discuss political risk, trade finance and credit insurance... The meeting [will] cast a spotlight on Botswana with delegates expected to explore the culture, heritage and natural environment across a range of thrilling excursions organised alongside the conference.

http://www.mmegi.bw/index.php?aid=67628&dir=2017/march/23


South Sudan officially joins Afrexibank

(BizNis Africa, Johannesburg, 29 March 2017) South Sudan, Africa’s youngest country, has become the latest country to join the African Export-Import Bank (Afreximbank) as a participating state... Dr. Benedict Oramah, President of Afreximbank, stated that membership of the Bank would give South Sudan automatic access to the full range of products and facilities offered by Afreximbank, including trade finance facilities, project finance services, trade information and advisory services, support in the development of a local content policy and assistance in developing and implementing industrial parks and special economic zones... Participating states become shareholders when they acquire shares in the Bank. Afreximbank shareholders are a mix of public and private entities divided into four classes and consist of African governments, central banks, regional and sub-regional institutions, private investors and financial institutions, as well as non-African financial institutions, export credit agencies and private investors.

https://www.biznisafrica.co.za/south-sudan-officially-joins-afreximbank/


Saab & BAE Systems table export credit for Malaysia fighter bid

(QUWA, Islamabad, 22 March 2017) With the Royal Malaysian Air Force (RMAF) seeking 18 next-generation multi-role fighters to supplant its MiG-29, leading aviation vendors are beginning to actively position their respective platforms. IHS Jane’s and Shepard Media report that Saab and BAE Systems are willing to provide credit or financing terms for the JAS-39 Gripen and Eurofighter Typhoon, respectively... Malaysia’s defence procurement strategy is tailored for diversification, which results in purchases from Eastern and Western vendors. One need only look at the Royal Malaysian Navy’s (RMN) recent purchases from France (Scorpene-class submarines and Gowind-class frigates) and China (Littoral Mission Ships).

http://quwa.org/2017/03/22/saab-bae-systems-table-export-credit-malaysia-fighter...


World Bank Project Aims to Help Mongolia Access Export Credits

(Military News, Ulaanbaatar, 24 March 2017) The Mongolia Ministry of Finance and the World Bank today launched the Export Development Project aimed to help small- and medium-sized enterprises in non-minerals sectors strengthen their export capabilities and boost their access to export markets. The project, to be implemented by the government of Mongolia in the next 4 ½ years, will support Mongolia’s economic diversification by providing those firms with training, matching grants and access to export credit-insurance products.

http://www.military-technologies.net/2017/03/24/world-bank-project-aims-to-help-...


What's New February 2017

"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.

We apologize for the delay in publication of the February issue which was caused by a crash of the editor's computer.

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.

  • Japanese ECA finances Indonesian coal plant despite widespread opposition
  • Canadian ECA supports Canadian software exports to stifle dissent in Bahrain
  • Swedish credit lines for Iran
  • Boeing *loves* the Export-Import Bank, but Boeing doesn't *need* the Export-Import Bank
  • Trump’s Mixed Signals on Export-Import Bank Leave Door Open for Conservatives
  • US Ex-Im has provided $315m to supplier of mines accused of slave labor
  • Afreximbank commits $90bn to boost African trade
  • Fitch affirms SACE rating at 'A-' with outlook negative

Japanese ECA finances Indonesian coal plant despite widespread opposition

(Banktrack, Nijmegen, 28 February 2017) As financial close was announced on the Tanjung Jati B 2 (TJB2) coal expansion power project in Indonesia yesterday, BankTrack, Friends of the Earth Japan and 350.org Japan criticised the Japan Bank for International Cooperation (JBIC) and several Japanese and Singaporean banks for their support for the project. JBIC’s approval of a USD 1.7 billion loan agreement for the project, with further backing from the “big three” Japanese commercial banks - Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation – as well as other Japanese banks and Singapore’s OCBC, comes after French banks Société Générale and Crédit Agricole withdrew from the bank consortium in December. The building of two new coal power units will make the already hard-felt impacts of the existing Tanjung Jati B coal power station worse. The local fishing community cites reduced catches, damage to the coral reef and collisions between fishing boats and coal transport barges. It will also worsen the impacts of air pollution. A Greenpeace report has estimated that the first four units are already responsible for 1,020 premature deaths per year because of respiratory infections caused by air pollution from the plant.

http://www.banktrack.org/news/japanese_and_singaporean_banks_step_in_to_finance_...


Canadian ECA supports Canadian software exports to stifle dissent in Bahrain

(Above Ground, Ottawa, 15 February 2017) Last year an Ontario-based company, with support from Export Development Canada, sold Internet filtering technology to the government of Bahrain — a country criticized internationally for widespread suppression of human rights defenders through censorship, surveillance, arbitrary detention and torture. In this submission to the Standing Senate Committee on Human Rights, we draw attention to this troubling situation and call for the adoption of regulatory and policy measures to ensure Canada is not complicit in foreseeable human rights violations associated with the use of digital censorship and surveillance technologies supplied by Canadian companies. The kingdom of Bahrain last summer started using Web-filtering software from Netsweeper Inc. as a means of keeping a lid on dissent according to a University of Toronto report.

http://www.theglobeandmail.com/news/national/bahrain-using-canadian-software-to-...


Swedish credit lines for Iran

(Financial Tribune, Tehran, 13 February 2017) After a meeting with the Swedish Minister for European Affairs and Trade Anne Linde, Iran's Minister of Communications and Information Technology Mahmoud Vaezi announced that two Swedish banks will allocate credit lines to Iranian companies in the field of communications and information technology.  The visiting delegates were in Tehran on Saturday as part of a high-ranking political and economic mission led by Swedish Premier Stefan Lofven on a three-day visit and included CEOs of companies like Scania, Ericsson, Elekta, Volvo, ABB, Sensys Gatso Group, Swedish Energy Agency, Swedish Environmental Protection Agency and Swedish Post and Telecom Authority, along with Danske Bank and EKN (Swedish export credit agency. Recent missions from France, Italy and Germay have shown that Europe will double down on Iran deal even as Trump steps away

https://financialtribune.com/articles/economy-business-and-markets/59467/swedish...


Boeing *loves* the Export-Import Bank, but Boeing doesn't *need* the Export-Import Bank

(Washington Examiner, Washington, 17 February 2017) The Export-Import Bank of the United States is also known as "Boeing's Bank," because about 40 percent of its financing, in the average year, goes to subsidize Boeing sales. Boeing spends a lot of time and money lobbying in favor of Ex-Im. One interesting detail: Kevin Varney, recently a vice president at Ex-Im is now chief of staff for government operations at Boeing. Boeing says they desperately need Ex-Im financing — that is, U.S. taxpayer guarantees for private bank loans to foreign airlines — but the evidence suggests Boeing finds financing sells jets just fine without the subsidy.

http://www.washingtonexaminer.com/boeing-loves-the-export-import-bank-but-boeing...


Trump’s Mixed Signals on Export-Import Bank Leave Door Open for Conservatives

(Heritate Foundation, Washington, 6 March 2017) For the last five years, conservative lawmakers have rallied behind efforts to close the Export-Import Bank, and were successful in 2015, albeit briefly, when the bank’s charter lapsed for the first time in its history. But now, with President Donald Trump in the White House, conservative lawmakers may have a chance to shutter the bank for good, or at least keep it operating with limited authority. There is just one problem: Trump has sent mixed signals on where he stands on the Export-Import Bank, and though his budget director and advisers oppose the agency, Trump signaled early in his administration he could be swayed.

http://dailysignal.com/2017/03/06/trumps-mixed-signals-on-export-import-bank-lea...


US Ex-Im has provided $315m to supplier of mines accused of slave labor

(Guardian, Washington, 22 February 2017) Between 2007 and 2015, the U.S. Export-Import Bank provided $315m in 48 taxpayer-supported insurance policies to the New Jersey-headquartered Connell Company to pursue deals with at least 17 mining companies accused of slave labor, human rights violations and environmental destruction in seven sub-Saharan countries. These included a $20,000 policy to supply equipment to the Bisha copper mine in Eritrea, which is being investigated by a Canadian court amid accusations of slavery, according to an investigation of the bank by the Guardian and the Columbia University Graduate School of Journalism’s Energy and Environment Reporting Project.

https://www.theguardian.com/us-news/2017/feb/22/us-export-import-bank-africa-min...


Afreximbank commits $90bn to boost African trade

(African Business Magazine, cc, 15 February 2017) The Pan-African trade finance provider aims to support at least $90bn in trade over the period 2017-21, including $25bn in intra-African trade. By comparison, it has approved $41bn in credit facilities in the 24 years since it was created, including $6.2bn in 2015. The Bank hopes to encourage intra-African trade by supporting the development of continental supply chains and export manufacturing capacity.

http://africanbusinessmagazine.com/sectors/infrastructure/afreximbank-commits-90...


Fitch affirms SACE rating at 'A-' with outlook negative

(Italy 24, Rome, 16 February 2017) Fitch said it has affirmed export credit agency SACE rating at 'A-' with outlook negative. “The ratings reflect SACE's strong capitalisation and business profile as Italy's export credit agency as well as its financial exposure to Italy,” Fitch said in a report.

http://www.italy24.ilsole24ore.com/art/panorama/2017-02-15/fitch-affirms-sace-ra...


What's New January 2017

"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.

  • OECD debates allowing some private sector ECA support to be called development assistance
  • Australia's export credit agency could fund offshoring of jobs
  • No Amendment to Efic Act without Meaningful Reform
  • France launches new ECA: Bpifrance replaces Coface
  • China's Sinosure Opens $1.3b Credit Line for Iranian Refinery
  • Sace and Intesa back Russian Yamal LNG
  • SACE & SIMEST (CDP Group) with BNP Paribas for $519 M North Sea Link Project
  • Without Ex-Im support, GE still plans to cut 350 jobs in Waukesha
  • UKEF signs first loan deal in Africa for Ghana GE energy project
  • Chad concludes membership procedure of Afreximbank

OECD debates allowing some private sector ECA support to be called development assistance

(ECA Watch, Ottawa, 31 January 2017) On January 18, 2017, the first day of a 2 day special meeting of a joint OECD Development Assistance Committee (DAC) and OECD Export Credit Working Group (ECG) task force took place with a number of outside CSO and business representatives, to discuss changes ("modernizations") in the definition of Overseas Development Assistance (ODA), with a view to "liberalize" ODA rules to allow subsidies to private firms to be counted as ODA. This change raises a number of risks, for example it could permit a rise in ODA without any change in expenditures as a portion of the work of Development Finance Institutions (DFIs), and possibly also of Export Credit Agencies (ECAs), which could be counted as ODA.

The basis of these changes would be in the definition of the "grant element" or "subsidy" in private sector instruments (PSIs) such as loans, guarantees or equity. This involves complex comparisons of PSI rates to market rates, with the difference counting as "grant element". As ECAs increasingly undertake loans as well as guarantees, and DFIs increasingly provide guarantees as well as loans, they find themselves at times financing (and possibly competing for) components of the same projects. Those ECAs which are members of the OECD "Arrangement" are prohibited by the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (ASCM) from providing export subsidies, i.e. "grant elements".

It is against that background that reportedly a number of OECD ECAs are opposed to the current proposals advocated by the OECD-DAC. While ECA's mandate is clearly to support domestic companies doing business abroad, it is quite troubling that officials that are supposed to fight poverty and inequity are widening their mandate to many kinds of private sector support as well, without taking care to examine the consequences. To ensure the ownership of developing countries on how the Sustainable Development Goals (SDGs) are to be financed, the OECD should be exploring in quite different directions. The current discussions of ECAs and ODA raises CSO concerns that ODA could be (mis)used as a source of subsidy for donor firms and that it could be directed away from current countries and sectors toward private sector support, middle-income countries and a reduction of actual public money available to developing countries.




Australia's export credit agency could fund offshoring of jobs

(Guardian Australia, 16 January 2017) Australia’s export credit agency could end up financing companies that have axed their domestic workforces to manufacture more cheaply overseas, a Senate inquiry has been told. The Export Finance and Insurance Corporation could become instrumental in the “further offshoring of Australian manufacturing” under draft laws proposed by the Coalition that would scrap the requirement to fund only exporters that manufacture “substantially or wholly in Australia”. Jubilee Australia, warned in its published submission that the government’s proposed reforms fell short of what was needed to make a secretive agency accountable in light of its chequered record financing overseas mining projects linked to civil strife and environmental degradation.

https://www.theguardian.com/australia-news/2017/jan/17/australia-export-credit-a...


No Amendment to Efic Act without Meaningful Reform

(Jubilee Australia, Sydney, 17 January 2017) Jubilee Australia has demanded that no expansion of Efic's mandate be allowed unless the institution improves its transparency and due diligence. Jubilee's concerns, summed up in an article in the Guardian today, said that any changes to the Efic Act should include better transparency and accountability with regard to its social and environmental assessment processes and a removal of its exemption from the freedom of information act. The demands were made in a joint submission with the Australia Institute to a Senate Inquiry into proposed reforms to Efic.

http://www.jubileeaustralia.org/latest-news/questions-raised-about-proposed-efic...


France launches new ECA: Bpifrance replaces Coface

(Global Trade Review, London, 18 January 2017) France has concluded the transfer of its export credit agency (ECA) from Coface to the Banque Publique d’Investissement (Bpifrance) and rebranded it Bpifrance Assurance Export. Coface’s 240 ECA-focused staff members have been transferred to Bpifrance to ensure continuity. Bpifrance Assurance Export teams will be led by Chritophe Viprey as general manager. The new agency is owned and controlled by the state, with Bpifrance managing all operations and export guarantees. This transition completes Bpifrance’s offering, and will simplify access to ECA products to make them available to small and medium-sized enterprises (SMEs). It makes Bpifrance the only portal for all internationalisation-related public aid, including cross-border investment funds, loans for international expansion, export credit, credit, foreign exchange, investment and pre-financing guarantees. Additionally, all Bpifrance financing will now be automatically guaranteed by the state.

(jDSUPRA Business advisor, Sausalito, 17 January 2017) Coface export guarantees and insurance policies were previously granted on behalf of the French State but in Coface's name with the French State acting as Coface's reinsurer under a service agreement between Coface and the French Ministry of Finance and regulated under the French Insurance Code (Code des assurances). Under the new legislation export credit guarantees and insurance will now be issued directly by the French State through Bpifrance

http://www.gtreview.com/news/europe/france-launches-new-eca/


China's Sinosure Opens $1.3b Credit Line for Iranian Refinery

(Financial Tribune, Tehran, 11 January 2017) China has opened a line of credit, worth $1.3 billion, to finance the development of Abadan Oil Refinery, Iran's oldest refinery in the southern Khuzestan Province, the chief executive of National Iranian Oil Refining and Distribution Company said. The funding is part of a $3-billion deal with China Petroleum and Chemical Corporation, known as Sinopec, which has reportedly started operations on renovating the Abadan refinery, Iran's century-old refinery that was heavily damaged during the Iran-Iraq war in the 1980s.

https://financialtribune.com/articles/energy/57200/chinas-sinosure-opens-13b-cre...


Sace and Intesa back Russian Yamal LNG

(Global Trade Review, London, 11 January 2017) Italian export credit agency (ECA) Sace and Intesa Sanpaolo have paired up to offer a €400mn credit line to finance Italian companies working on the Russian Yamal liquefied natural gas (LNG) project, despite continued US and European sanctions against Russia. Intesa will issue the money, as part of two credit lines for the project, while Sace will guarantee the finance, which has been earmarked for Italian subcontractors. The second Intesa credit line is for €350mn and is backed by French ECA, Coface.

http://www.gtreview.com/news/europe/sace-and-intesa-back-russian-yamal-lng/


SACE & SIMEST (CDP Group) with BNP Paribas for $519 M North Sea Link Project

(Military Technologies, London/Rome/Milan, 16 December 2016) SACE and SIMEST (Cassa Depositi e Prestiti Group) and BNP Paribas Corporate & Institutional Banking (CIB) announce the finalisation of export financing of $519 million for National Grid North America, a company of the National Grid Plc Group, the UK’s main electricity and gas utility company, in support of the works and supply orders awarded to Prysmian as part of the international project North Sea Link (“NSN Link”). The project, which has a total value of €2 billion, involves the construction of a subsea interconnector with a capacity of 1,400 MW between the United Kingdom and Norway. Once completed, it will extend over 730 kilometres becoming the longest infrastructure of its kind in the world.

http://www.military-technologies.net/2017/01/10/sace-and-simest-cdp-group-with-b...


Without Ex-Im support, GE still plans to cut 350 jobs in Waukesha

(GM Today, Waukesha, 24 January 2017) With a possible tariff imposed upon companies that manufacture products out of the country and bring them back in looming, GE will not alter its plan to send 350 manufacturing jobs from its Waukesha plant to Canada. Instead, the company remains open to the possibility of working with the city in the future to repurpose its GE Power & Water facility. GE announced in September 2015 that it was going to stop manufacturing gas engines in Waukesha in favor of a new $265 million facility to be built in Welland, Ontario, Canada. GE’s manufacturing of those engines in Waukesha Wisconsin will cease around 2018. The reason for the move, the company said, was because at the time, Congress had allowed the Export-Import Bank’s authorization to lapse. A GE spokesman said the company will continue investing in the United States and possibly Waukesha, but without a fully-operational Ex-Im Bank, large projects become increasingly more difficult to initiate. The move to Canada is going ahead despite President Trump's vow to impose a 35% tax tariff on products they want to sell back in the U.S. on companies if they leave the country. [Efforts to allow the Ex-Im Board to fund deals over $10 million still face opposition in Congress despite support from business and some conservatives.]
 

http://www.gmtoday.com/news/local_stories/2017/01242017-GE-still-plans-to-cut-35...


UKEF signs first loan deal in Africa for Ghana GE energy project

(Reuters, London, 16 January 2017) Britain's credit export agency, UK Export Finance (UKEF), signed its first direct loan deal in Africa on Monday, providing $310 million to GE Oil & Gas to supply equipment for an oil and gas project in Ghana. UKEF's loan and credit facility is part of a wider $1.35 billion financing for the Offshore Cape Three Points (OCTP) project, developed by Eni, Vitol Ghana Upstream and the Ghana National Petroleum Corporation. The $7.9 billion project will tap offshore oil and gas resources and provide fuel for gas-fired power plants in Ghana. Oil and gas production from the project is expected to peak at 80,000 barrels of oil equivalent per day in 2019. It builds on an agreement signed in 2015 between UKEF and UK-headquartered GE Oil & Gas to provide up to $12 billion in financing. The GE subsidiary, which won an $850 million contract to supply equipment to the OCTP project in 2015, manufactures oil and gas equipment at factories in Bristol and Aberdeen.

http://www.reuters.com/article/britain-export-ge-ghana-idUSL5N1F62V5


Chad concludes membership procedure of Afreximbank

(Premium Times, Abuja, 9 January 2017) President Idriss Deby Itno of Chad, on December 30, 2016, ratified the Agreement on the Establishment of the African Export-Import Bank (Afreximbank), concluding the formalisation of the country’s membership of the continental trade finance bank. The ratification of the Agreement marks the full activation of Chad’s membership of Afreximbank and allows the Bank to fully deploy its programmes and facilities in the country in order to stimulate trade activities and develop value-added exports across its economic sectors. It also opens up opportunities for the Bank to provide much-needed financing for the construction of trade-enabling infrastructure in the country.

http://www.premiumtimesng.com/business/business-news/219984-chad-concludes-membe...


What's New December 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.

  • Papua New Guinea troops to protect huge Exxon-Mobil Ex-Im supported gas project
  • ECAs fuel Mozambique LNG project amid IMF caution
  • China's Belt and Road Initiative and Ex-Im Chin
  • Indonesian Batang Villagers file objection against JBIC coal-fired power project
  • Hungarian & Canadian ECAs to co-finance Indonesia's GE gas power project
  • Potential Export-Import Bank deals pose grave environmental threat, experts say
  • Ex-Im Bank Critics, Supporters Look to Donald Trump for Help
  • Boeing CEO Dennis Muilenburg urges Trump to keep Ex-Im Bank or risk losing foreign sales
  • Trends in OECD Arrangement official export credits (2005-2014)
  • Dubai Working with HSBC on $7-B Bank & ECA Financing for Expo 2020
  • Ukraine's Rada approves creation of export-credit agency
  • Ex-Im’s satellite-lending lapse didn’t stop Israel’s Spacecom from buying American
  • JIBC/NEXI to support new loan scheme for Russia
  • Opportunity knocks for Scottish exporters as sterling tumbles
  • Germany’s Hermes in Iran

Papua New Guinea troops to protect huge Exxon-Mobil Ex-Im supported gas project

(wsws.org, Jacksonville, 19 December 2016) The Papua New Guinea (PNG) government announced on Friday that it will deploy military personnel to stop “violence” near the country’s biggest resources installation, the Exxon-Mobil Liquefied Natural Gas (LNG) project...The security and viability of the ExxonMobil operation is a key concern in Washington. In November 2010, then US Secretary of State Hillary Clinton visited PNG and noted that the US Export-Import Bank was helping finance the ExxonMobil project, noting "China is in there every day in every way trying to figure out how it’s going to come in behind us, come in under us.”... Traditional landowners are now threatening to physically attack the LNG plant over the government’s failure to pay promised royalties and equity in the project. The landowners are owed $1 billion kina ($US315 million) in royalties.
Jubilee Australia has had concerns about the potential militarisation of the project since its inception,' said Director Luke Fletcher . 'We first raised these concerns in 2009 in our Risky Business report, and more fully developed them in 2012 with Pipe Dreams.' He questioned the characterisation of the violence as simply tribal. "If that is so, why has it suddenly broken out now, just as landowner unhappiness with the project escalates? And why engage Exxon and Oil Search (project operators) to assist with policing the area?

https://www.wsws.org/en/articles/2016/12/19/pngt-d19.html


ECAs fuel Mozambique LNG project amid IMF caution

(TFX News, London, 12 December 2016) ECAs are to offer guarantees for two LNG projects in Mozambique, as commercial lenders watch closely to see how talks progress between the government and the IMF before committing to the project. Export credit agencies (ECAs), including the Export-Import Bank of Korea (Kexim), France's Coface, Italy's Sace, and the Export-Import Bank of China (China Exim), are set to play a key role in the financing of two Rovuma Basin liquefied natural gas (LNG) projects planned in the north of Mozambique.

http://www.txfnews.com/News/Article/5901/ECAs-fuel-Mozambique-LNG-project-amid-I...


China's Belt and Road Initiative and Ex-Im Chin

(Friends of the Earth USA, Washington, December 2016) The Belt and Road Initiative (BRI) is a major Chinese strategy which marks a national push for China to increase economic links to Southeast Asia, Central Asia, Russia, and the Baltic region (Central and Eastern Europe) through various infrastructure and development projects. BRI sends a clear signal for Chinese industries to invest along proposed BRI land and maritime routes, and embodies the political, economic, and foreign diplomacy interests of China abroad. The Export-Import Bank of China holds an outstanding loan balance of over 1000 projects involving roads, railways, ports, power resources, pipelines, communication, and industrial parks in the 49 countries along the 'Belt and Road'. [p.6] A researcher at the Chinese Academy of International Trade and Economic Cooperation has suggested that China must take active measures to reduce upheaval and turmoil from Islamic risk in the BRI, in part through upgraded policy-oriented export credit insurance and foreign investment insurance.

http://www.foe.org/china-belt-and-road-report


Indonesian Batang Villagers file objection against JBIC coal-fired power project

(FOE Japan, Tokyo, 5 December 2016) On December 5, eleven local Indonesian community leaders, who have continued to oppose the “Batang Coal-fired Power Plant Project” over five years now, visited the Japan Bank for International Cooperation (JBIC) Jakarta office and submitted their objections against JBIC. (18 villagers signed on as community representatives and the signatures of more than 900 villagers who supported this objection were also attached.) In their objection, the villagers pointed out that the project has failed to comply with “JBIC Guidelines for Confirmation of Environmental and Social Considerations”, has made their lives worse and has caused the violations of human rights.

http://www.foejapan.org/en/aid/161205.html


Hungarian & Canadian ECAs to co-finance Indonesia's GE gas power project

(Business Journal, Budapest, 12 December 2016) The Hungarian Export-Import Bank (EXIM) and export credit agency Export Development Canada (EDC) will jointly finance a project to build eight mobile power plants using General Electric (GE) technology for Indonesiaʼs state-owned electricity company, Hungaryʼs Ministry of Foreign Affairs and Trade said today, according to Hungarian news agency MTI.

http://bbj.hu/economy/eximbank-export-development-canada-to-co-finance-indonesia...


Potential Export-Import Bank deals pose grave environmental threat, experts say

(Guardian, London, 7 December 016) Congress quashed the hopes late Tuesday of reviving the United States’ export credit agency, which had been aiming for a stopgap lifeline allowing them to approve more than $20bn in new deals, many of which pose imminent harms to the environment. Now, the fate of a pristine coral reef, an east African mangrove forest, and the livelihoods of farmers and fishermen in a south-east Asian river delta lie in the hands of a new Congress and president. Since 2009, when Barack Obama became president, the Export-Import Bank has signed almost $34bn worth of low-interest loans and guarantees to companies and foreign governments to build, expand and promote some 70 fossil fuel projects around the world, according to an investigation by the Guardian and Columbia University’s Graduate School of Journalism’s Energy and Environmental Reporting Project.

https://www.theguardian.com/us-news/2016/dec/07/export-import-bank-fossil-fuel-p...


Ex-Im Bank Critics, Supporters Look to Donald Trump for Help

(Wall Street Journal, Washington, 8 December 2016) President-elect Donald Trump’s jawboning of executives to keep jobs in the U.S. is putting free-market conservatives in an awkward spot after they fought the Obama administration on other government intervention in business. Now, the fate of an agency that conservatives have fought to close over the past year because they say it is an example of the government picking winners and losers—the U.S. Export-Import Bank—will rest in Mr. Trump’s hands. Ex-Im Bank supporters are already using Mr. Trump’s early moves to build their case. The president-elect’s emerging industrial policy—seen last week when he touted Carrier Corp.’s agreement to keep 800 manufacturing jobs in Indiana in exchange for some tax credits—would appear at odds with conservative opposition that has weakened the bank over the past year, amid charges of “crony capitalism.” Congress recently rejected an amendment that would allow US Ex-Im to function without a full board. However, the news that senator Richard Shelby – who has blocked new nominations to the board – has termed out as senate banking committee chairman bodes well for the ECA, as a new pro-Exim replacement is set to start on 3 January.

http://tinyurl.com/wsj-exim-trump


Boeing CEO urges Trump to keep Ex-Im Bank or risk losing foreign sales

(Pueget Sound Business Journal, Seattle, 2 December 2016) Boeing CEO Dennis Muilenburg urged the new Republican administration of President-elect Donald Trump to preserve and reopen, not abolish the U.S. government's Export-Import Bank. Muilenburg said if Trump gets rid of the Ex-Im Bank, as he vowed to during the 2016 election campaign, Chicago-based Boeing (NYSE: BA), a maker of commercial and military jet aircraft, will lose foreign customers — and big contracts — to rivals in other countries, including Airbus.

http://www.bizjournals.com/seattle/news/2016/12/02/boeing-ceo-dennis-muilenburg-...


Trends in OECD Arrangement official export credits (2005-2014)

(OECD, Paris, 10 October 2016) The OECD ECG has produced a broad stroke two year old sectoral overview of OECD member ECAs activities which is not linked on its "latest documents" page, but can be found well down its home page under "statistics". The most recent highly redacted minutes of the Export Credit Working Group available on their web site are dated April 15, 2011 and no link to them is available via their home page. The lists of Category A & B projects for the period 2005 to 2014 are missing data for 2011 & 2012.

http://www.oecd.org/trade/xcred/business-activities.htm


Dubai Working with HSBC on $7-B Bank & ECA Financing for Expo 2020

(Live Trading News, Singapore, 16 Decembber 2016) Dubai is working with HSBC on the financing of Expo 2020 Dubai, a $7-B exhibition centre project expected to attract 25-M visitors, sources familiar with the matter said. The financing will come from bank loans and from various export credit agencies, the sources said. HSBC has been appointed to coordinate the export credit agencies and financing supported by them, the sources said, adding that the split between the commercial loans and the export credit financing was yet to be defined.

http://www.livetradingnews.com/dubai-working-hsbc-7-b-financing-expo-2020-23655....


Ukraine's Rada approves creation of export-credit agency

(Kyiv Post, Kyiv, 21 December 016) The bill No. 2142a providing for the aggressive exports expansion of Ukrainian manufacturers via insuring, guaranteeing and cheapening of exports crediting was passed at second reading late on Tuesday, Dec. 21, by 237 lawmakers. According to the document, Ukraine’s Cabinet of Ministers creates the export-credit agency to stimulate exports of Ukrainian goods, labor and services. The agency will insure, reinsure exports on a voluntary basis and will secure contracts aimed at developing exports. The agency will participate in the implementation of the program to partially compensate the rates for exports credits.

https://www.kyivpost.com/ukraine-politics/rada-approves-creation-export-credit-a...


Ex-Im’s satellite-lending lapse didn’t stop Israel’s Spacecom from buying American

(Space News, Congers NY, 22 December 2016) Spacecom is buying its newest spacecraft from an American supplier without relying on financial support from the Export-Import Bank of the United States, according to a company official. Amos-17 is the first satellite Spacecom has bought from a U.S. supplier. The order comes during a vexing time for U.S. satellite builders trying to sell abroad. The U.S. Ex-Im Bank, a frequently-used source of below-market financing for satellite deals, was closed to new business for nearly half of 2015.

http://spacenews.com/ex-ims-satellite-lending-lapse-didnt-stop-israels-spacecom-...


JIBC/NEXI to support new loan scheme for Russia

(Nikkei Asian Review, Tokyo, 12 December 2016) Japan's Sumitomo Mitsui Banking and the Japan Bank for International Cooperation will jointly launch a new scheme to provide loans for small to midsize Russian businesses via Alfa-Bank. Japanese export credit agency Nippon Export and Investment Insurance (NEXI) will back up the creditworthiness of the Russian lender. Despite being a major private lender in Russia, Alfa bank's credit profile, including total asset size, is much lower than state-backed lenders. NEXI will provide guarantees in order for Japanese banks to avoid the risk of possible bad loans. The total loan amount is expected to reach hundreds of millions of dollars.

http://asia.nikkei.com/Politics-Economy/Economy/Japan-to-launch-new-loan-scheme-...


Opportunity knocks for Scottish exporters as sterling tumbles

(Daily Record, Edinburgh, 21 December 2016)  With the falling value of the pound making UK goods more competitive on the world stage, the environment for Scottish businesses looking to trade internationally is arguably more positive than for many years. According to a recent business survey by Grant Thornton, confidence among firms that their exports will rise has more than doubled in the wake of sterling’s steep fall. UK Export Finance (UKEF) - the UK’s export credit agency which operates through a network of advisers including two based in Scotland - aims to bridge the gap by offering insurance to exporters and guarantees to banks to share the risks of providing export finance.
 

http://www.dailyrecord.co.uk/business/business-features/insider-special-report-e...


Germany’s Hermes in Iran

(Mehr News Tehran, 24 December 2016) Iran always has been considered as an eye-catching and money-spinning market for several European countries like Germany offering not only 80 million people it has but also a 400-million-people marketplace it can provide access to. Following the termination of the nuclear deal between Iran and great powers, officially known as the Joint Comprehensive Plan of Action (JCPOA), the European Union countries, Germany in particular, are trying to foster their economic cooperation with the Islamic Republic. For decades before sanctions were imposed, Germany, which enjoys the largest economy in Europe with a nominal gross domestic product in 2016 of $3.5 trillion, was Iran’s major trading partner.

http://en.mehrnews.com/news/122237/Report-Germany-s-Hermes-in-Iran


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