ECA Watch Newsletter

What's New March 2018

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.

  • Bombardier-Gupta affair provokes timely public debate on accountability of EDC
  • Report finds major banks ramped up fossil fuel financing to $115 billion in 2017
  • Judge Demands Explanation in Pipeline Lawsuit
  • UKEF seeks new markets at Brexit looms
  • Hermes as a factor in German Turkish relations?
  • Turkish Bridge Attracts $2.8 Billion From Banks & KEXIM
  • Saudi Arabia’s use of ECA finance in Iraq is making Iran nervous
  • Australia moves up defence exporter list
  • Canadian business optimistic about potential in China: EDC
  • New ICC report confirms trade & export finance are not risky business
  • Banking on Energy: The Determinants of Export Credit Agency Energy Financing from China and Japan
  • Italy's SACE plans to back nearly $5bn in UAE projects

Bombardier-Gupta affair provokes timely public debate on accountability of EDC

http://aboveground.ngo/bombardier-gupta-accountability-edc/

(Above Ground, Ottawa, 26 March 20188) Ongoing media coverage regarding the sale of a Bombardier jet to the Gupta family in South Africa has triggered an important public debate about the accountability and transparency of Canada’s export credit agency, Export Development Canada (EDC). With Parliament set to review the agency’s governing legislation this year, the timing for such a discussion could not be better. In response to a Globe and Mail op-ed asserting that public oversight of EDC “is not just scant, it’s non-existent,” EDC recently published a statement in which it defends its “exceptional track record,” arguing that it operates transparently, that it is subject to “multiple levels of government and public oversight” and that it welcomes public scrutiny of its operations.

We offer several observations to further this important debate.




Report finds major banks ramped up fossil fuel financing to $115 billion in 2017

(BankTrack, Amsterdam, 28 March 2018) A report released today by Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Sierra Club, and Honor The Earth, endorsed by over 50 organisations around the world, reveals that in spite of the urgent climate crisis, 2017 was a year of backsliding by private banks. Despite 2017 being the costliest year on record for weather disasters, the new report reveals that banks increased extreme fossil fuel financing last year [US$115 billion], led by a more than doubling in lending to tar sands companies and pipelines.The report provides invaluable data on specific banks and sectoral investments. In our November 2017 What's New, ECA Watch noted that export credit agencies fund almost $40 billion worth of fossil fuel projects each year. (Some of that overlapping as guarantees for private banks.) That is a whopping 12 times more than what they spend on clean energy projects.

http://mailchi.mp/banktrack/report-finds-major-banks-ramped-up-fossil-fuel-finan...


Judge Demands Explanation in Pipeline Lawsuit

(WTOP, Washington, 30 March 2018) Texas-based pipeline developer Energy Transfer Partners in August sued Earth First, Greenpeace and BankTrack for up to $1 billion, alleging they disseminated false and misleading information about the $3.8 billion pipeline that’s now moving oil from North Dakota to Illinois, and instigated violent protests while the pipeline was under construction. Greenpeace and BankTrack maintain the lawsuit is meritless and an attack on free speech. The Center for Constitutional Rights maintains Earth First is an unstructured social movement or philosophy, similar to Black Lives Matter, and can’t be sued. However, U.S. District Judge Billy Roy Wilson says Earth First has been a listed plaintiff in three federal lawsuits in the 1980s and 1990s, involving a water project in Arizona, a wilderness area in Oregon and a New Mexico canyon important to American Indians. “If Earth First can sue, it seems to me that it is subject to being sued,” Wilson said in a March 22 order.

https://wtop.com/national/2018/03/judge-demands-explanation-in-dakota-access-law...


UKEF seeks new markets at Brexit looms

(Arabian Business, Dubai, 30 March 201) As the spectre of Brexit looms, speculation has swirled that the European Union’s loss will be the Gulf Cooperation Council’s (GCC) gain. British firms have been eyeing international expansion ahead of the country’s departure from the economic and political bloc for some time, and these closer economic ties are now rapidly becoming a reality. The opening of a permanent UK Export Finance office in Dubai is a clear sign of a booming post-Brexit relationship between the UK and the Middle East. In addition to the GCC, UKEF is looking to African infrastructure projects. The UK’s Trade Commissioner for Africa Emma Wade-Smith recently noted that the decision for the UK to move away from the European Union provides an opportunity to re-engage and refresh the way we operate across Africa. “For example, the UKEF has the ability to support infrastructure projects in South Africa (up to £4bn), Kenya (up to £1bn) and Nigeria (up to £750m). British home secretary Amber Rudd recently celebrated the strength and depth of the UK and Pakistan's "shared history" in announcing that UKEF would double its support, allowing Pakistan’s buyers to access finance to source high-quality UK goods and services.

http://www.arabianbusiness.com/politics-economics/393226-how-the-uk-is-doubling-...


Hermes as a factor in German Turkish relations?

(Handelsblatt, Berlin, 7 March 201) Turkey and Germany recently agreed to try to “normalize” their fraught relationship. Turkey had adopted hostage-taking as an instrument of foreign policy, with Germany being a target. Germany’s response was to reconsider economic aid and export credit guarantees, to advise German tourists against travel to Turkey, and to put weapons deliveries to Turkey on hold. Between 2006 and 2011 Germany had delivered 354 Leopard 2 tanks to Turkey... Nevertheless, there is every sign that Germany is intent on going back to business as usual as soon as possible. One German-Turkish joint venture, for instance, is helping Turkey to construct its own battle tank, the Altay. The German partner, Rheinmetall, will produce the first 100-200 tanks of the 1,000 planned.

https://global.handelsblatt.com/opinion/germany-must-not-sell-soul-turkey-restor...


Turkish Bridge Attracts $2.8 Billion From Banks & KEXIM

(Bloomberg, London, 1 March 2018) A consortium of South Korean and Turkish construction firms are raising 2.3 billion euros ($2.8 b) from a group of about 20 banks and South Korea's export credit agency to build a 3.1 billion euro suspension bridge and toll roads in western Turkey.

https://www.bloomberg.com/news/articles/2018-03-01/turkey-south-korea-jv-is-said...


Saudi Arabia’s use of ECA finance in Iraq is making Iran nervous

(Economist, London, 8 March 2018) At a conference in Kuwait last month, the Saudi foreign minister, Adel al-Jubeir, pledged $1bn in loans and $500m in export credit to support Iraq’s reconstruction after the war with Islamic State (IS). Saudi interest in Iraq was initially pricked by America, which has been marshalling Gulf support to help stem Iran’s push west. Iraq, under Saddam, threatened to invade Saudi Arabia. More recently, it has allowed Shia militias backed by Iran to set up camp on the Saudi border. In response the kingdom, which considers itself the region’s Sunni champion, is accused of bankrolling Sunni jihadists in Iraq. In 2015 Muhammad bin Salman was central to restoring diplomatic relations with Iraq and last year reopened the kingdom’s borders. He has shifted money from Sunni politicians to more effective Shia ones. Diplomats note the disparity in help offered by Saudi Arabia and Iran, which pledged nothing at the February conference in Kuwait. “Having failed to outfight Iran, the Saudis now want to outspend it,” says a delighted Iraqi official. Meanwhile, EU officials are trying to think of mechanisms to counter potential future sanctions against European companies and banks, the more important challenge is how to entice Iran to remain committed to the nuclear deal, even if Washington withdraws. Iranian officials have been clear that Tehran would only stay committed if it receives enough benefits from staying in the deal.

https://www.economist.com/news/middle-east-and-africa/21738405-kingdom-eyeing-so...


Australia moves up defence exporter list

(Defence Connect, North Sydney, 13 March 2018) The latest Stockholm International Peace Research Institute (SIPRI) report looking at trends in international arms transfers has seen Australia move up to 19th place among the top 25 largest exporters of major arms. News of the move to 19th place comes just weeks after the federal government unveiled its Defence Export Strategy, which outlined its ambitions to become a top 10 major arms exporter. A $3.8 billion Defence Export Facility will be administered by Australia's export credit agency, Efic.

https://www.defenceconnect.com.au/key-enablers/2029-australia-moves-up-defence-e...


Canadian business optimistic about potential in China: EDC

(Xinhua, Ottawa, 21 March 2018) There are currently over 1,000 Canadian companies doing business in China, more then 600 of them supported by the EDC, the country's export credit agency which offers trade finance, export credit insurance, bonding services and foreign market expertise, EDC's Liew told Xinhua in a phone interview from Hong Kong. China and Canada plan to double their bilateral trade volumes during the decade from 2015 to 2025. China remains Canada's second largest trade partner, second largest export destination and second largest import source for years.

http://www.xinhuanet.com/english/2018-03/21/c_137053585.htm


New ICC report confirms trade & export finance are not risky business

(International Chamber of Commerce, Paris, 6 March 2018) The 2017 ICC report draws on information from 22 member banks to present a global view of the credit risk profiles of trade and export finance transactions. It is based on over US$10.5 trillion of exposures and more than 20 million trade finance transactions from 2008 to 2016—constituting approximately 40% of global traditional trade finance flows. The trade finance products in the register are import letters of credit, export letters of credit, loans for import/export, and performance guarantees.

https://iccwbo.org/media-wall/news-speeches/new-icc-report-confirms-trade-export...


Banking on Energy: The Determinants of Export Credit Agency Energy Financing from China and Japan

(Global Development Policy Cente, Boston, 28 February 2018) ABSTRACT  In a very short period, Export-Import Bank of China (CHEXIM) and China Development Bank (CDB) have become some of the largest Export Credit Agencies in the world. This paper examines the extent to which CHEXIM and CDB behave similarly to Japan Bank for International Cooperation (JBIC), their Japanese counterpart in energy loans approval. Utilizing a new database on publicized overseas loans for energy from the two banks, this paper econometrically analyses the determinants of CHEXIM and JBIC’s overseas energy loans in a comparative perspective. Like their Japanese counterparts, the Chinese banks exhibit a certain degree of concern for the recipient’s domestic economy but exhibits risk seeking tendencies as well. Unlike current JBIC energy loans, Chinese energy loans have a significant correlation to China’s growing energy dependence. Contrary to c,laims that China’s ECA is a tool to gain geopolitical advantage; geopolitical concerns do not appear to be a determinant of CHEXIM’s overseas finance. (PDF file)

http://www.bu.edu/gdp/files/2018/03/Economy-in-Command_Ye_Draft_26.01.pdf


Italy's SACE plans to back nearly $5bn in UAE projects

(Arabian Business, Dubai, 3 March 2018) Italy's SACE says evaluating nearly $5bn of UAE projects Export credit agency sees its exposure in the Middle East almost triple to $14.7bn since opening offices in Dubai. It said growth is expected to continue in the region as it is currently evaluating new projects in the MENA region worth €12 billion ($14.7 billion) – nearly $5 billion of which is dedicated to the UAE.

http://www.arabianbusiness.com/politics-economics/390486-italys-sace-says-evalua...


What's New February 2018

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.

  • Export credit agencies lurk in the shadows of responsible financing
  • G20 Countries' Public Coal Financing Reaches 5 Year High
  • Vietnam Pulls Request for U.S. Ex-Im Help to Build a Coal-Fired Power Plant
  • Standard Chartered & ECAs ‘breaching climate policy’ with Vietnam coal plant investment
  • Attorney calls for sanctions against Energy Transfer Partners in Dakota Access pipeline suit
  • Airbus executives get swept away by a corruption investigation
  • BAE proposes UKEF financing to Malaysia for Typhoon jet deal
  • No job estimates on arms export plan
  • Western banks rush to gain deals on China's Belt and Road Initiative
  • U.S. Treasury official slams China's 'non-market behavior'
  • US leads the way on protectionism in 2017 with tarifs and export credit
  • Bipartisan group of House lawmakers urge action on Export-Import Bank nominees
  • U.S. urges help for Iraq, extends $3 billion Ex-Im credit line
  • South Africa joins Afreximbank as a shareholder
  • South Africa’s Guptas hid Bombardier jet, EDC says in court repossession efforts
  • Armenian NGO challenges controversial ECA supported gold mine
  • Brazil grants US$2 billion ECA credit line to Angola
  • Anadarko agrees Mozambique LNG sale, banks/ECAs discuss finance terms

ECAs go to Market

(Finance & Trade Watch and CEE Bankwatch, Dec. 2017) Export credits are big business. Members of the industry’s Berne Union, both state and private, insured approximately USD 1.9 trillion per year between 2012 and 2016, of which USD1 trillion was state ECA insured. That amount far exceeds the total investments of multilateral lenders such as the World Bank and the regional development banks and represents some 11% of world trade Between 2015 and 2017, Finance & Trade Watch and Bankwatch, together with their national partners, researched state export credit agencies (ECAs) in seven countries of the European Union (Austria, Czech Republic, Croatia, Hungary, Poland, Romania and Slovakia). The aim of this research was to assess how the procedures and performance of these institutions comply with the relevant national, European and international regulatory frameworks. These include transparency, accountability, environmental and social standards as reflected in the OECD (Common Approaches), the EU (ECA Regulation) and the UN (Sustainable Development Goals, the Aarhus Convention and the Paris Agreement). Their report finds: a lack of ECA transparency, dubious investements, particularly in fossil fuels, projects contrary to national greenhouse gas commitments under the Paris Agreement, and OECD and EU standards and monitoring which are voluntary and unable to guarantee that prohibited investments are being approved. This has led to their involvement in a number of economically and politically-compromising projects. This first-of-its-kind research examines ECAs in the ‘new’ EU Member States and compares these with an example from the EU 15 – the Austrian ECA OeKB – as well as examples from other EU 15 countries. It shows regulatory gaps and offers a range of policy recommendations. The full report is available here and a summary here.

http://www.intellinews.com/comment-export-credit-agencies-lurk-in-the-shadows-of...


G20 Countries' Public Coal Financing Reaches 5 Year High

(Natural Resources Defense Council, New York, 8 February 2018) In 2017, financing from G20 governments for overseas coal projects reached a 5 year high, totaling at least $13 billion in loans, credits, and guarantees. This financial support for coal projects directly undermines G20 climate commitments and ignores the reality that a rapid coal phase out is needed if the world is to reach the 1.5 degree temperature goal under the Paris Climate Agreement. This is the 2nd year in a row that G20 public financing has increased for coal power projects in foreign countries. G20 public financing here refers to financial backing from government export credit agencies, like Japan Bank for International Cooperation, development banks, like China Development Bank, and government insurance entities, like Korea Trade Insurance Corporation. Public financial support is given to benefit domestic companies who are involved in projects abroad — for example, in 2017, Japan Bank of International Cooperation provided a $730 million dollar loan to enable Marubeni, a Japanese company, to develop the 1000 MW Cirebon 2 Coal Power Station in Indonesia. Public financial support can take the form of loans, guarantees, export and import credits, grants, and equity financing.

https://www.nrdc.org/experts/han-chen/g20-countries-public-coal-financing-reache...


Vietnam Pulls Request for U.S. Ex-Im Help to Build a Coal-Fired Power Plant

(New York Times, Hong Kong, 13 February 2018) A Vietnamese company is no longer seeking American financial support to build a coal-fired power plant in Vietnam, bringing to an abrupt end a closely watched test of whether Washington would back international projects that could potentially contribute to climate change. On Thursday, the Export-Import Bank of the United States, a lender run by the American government, said the Vietnamese state-controlled company, PetroVietnam, had withdrawn its application for financial support. In this case, a green light would have allowed PetroVietnam to purchase millions of dollars’ worth of turbines and other equipment from General Electric, the American manufacturer. The project, which is already under construction, faced intense criticism inside and outside the United States. Environmental and other groups said the project would have had a greater environmental impact than reports submitted by PetroVietnam had suggested. The World Bank and other major institutions have increasingly avoided backing projects supported by developing countries that burn coal and other fossil fuels, which emit greenhouse gases that contribute to climate change. The UK’s version of the Ex-Im Bank had declined to offer financial support for the Long Phu 1 project for similar reasons.

https://www.nytimes.com/2018/02/11/business/us-exim-vietnam-coal.html


Standard Chartered & ECAs ‘breaching climate policy’ with Vietnam coal plant investment

(Climate Home News, London, 14 February 2018) The London-based bank plans to co-finance Nghi Son 2 power plant, which NGOs say uses dirty old technology, against company and OECD guidelines. The proposed financing arrangements also appear to breach the Organisation for Economic Cooperation and Development’s guidelines on coal, which restrict governments from using public export finance for new coal plants. Both Japan's and Korea’s export credit agencies, which help companies to export and win international business, are backing the project. Environmental NGOs Market Forces and Greenpeace analysed data from the project’s environmental impact assessment,  released last week by Japan Bank for International Cooperation (JBIC) — an export credit agency wholly owned by the Japanese government. Vietnam’s expansion of coal-fired power generation to meet booming energy demand has led to major concerns over public health. The number of coal plants in Vietnam is projected to rise from 38 to 133, including all plants currently planned or under construction. Citing a study published in the journal Environmental Science & Technology  last year, Myllyvirta said coal-fired power plants were responsible for an estimated 4,300 premature deaths in Vietnam in 2011 alone. The study forecasts that by 2030 there will be more than 19,220 deaths per year due to coal pollution.

http://www.climatechangenews.com/2018/02/14/standard-chartered-breaching-climate...


Attorney calls for sanctions against Energy Transfer Partners in Dakota Access pipeline suit

(Associated Press, Bismark, 9 February 2018) Attorneys for a Florida-based environmental publication want a federal judge in North Dakota to sanction the Texas-based developer of the Dakota Access oil pipeline in a dispute over whether the publication can be sued. Earth First Journal maintains Energy Transfer Partners attorneys aren't acting in good faith by associating the publication with the Earth First social movement, which the company contends was part of an effort to undermine the pipeline project and the company. Energy Transfer in August sued Greenpeace, BankTrack and Earth First for up to $1 billion, alleging the environmental groups disseminated false and misleading information about the $3.8 billion pipeline moving oil from North Dakota through South Dakota and Iowa to Illinois, and instigated violent protests. Journal attorney Pamela Spees maintains the journal and movement aren't the same thing, and that the insistence of company attorneys to the contrary is "intentional and reckless disregard of their duties to the court." Spees asked Hovland to order the plaintiffs to pay the center's fees and to educate lawyers at the plaintiff firms about the Federal Rules of Civil Procedure, which she claims have been violated.

https://www.nydailynews.com/newswires/news/business/attorney-calls-sanctions-dak...


Airbus executives get swept away by a corruption investigation

(The Economist, Singapore, 8 February 2018) A management shake-out may reawaken national rivalries at the European aerospace giant. “The success of Airbus is intimately linked to the success of John [Leahy],” says Eric Schulz, successor to John Leahy, who has been chief salesman for the planemaker since 1994. Mr Leahy’s aggressive strategy to gain orders expanded Airbus’s market share for civil jets from 18% in 1994 to over 50%. But this year’s Singapore Airshow, which began on February 6th, will be Mr Leahy’s last before retirement. Staff turnover does not stop there. In December the firm said Tom Enders, its German-born chief executive, would step down in 2019; his French second-in-command, Fabrice Brégier, will leave this month. These changes follow the news that several countries, including Britain, France and America, are investigating allegations that in the past Airbus bribed officials to win contracts. That created divisions between French and German executives over how to respond.

https://www.economist.com/news/business/21736580-management-shake-out-may-reawak...


BAE proposes UKEF financing to Malaysia for Typhoon jet deal

(Reuters, London, 12 February 2018) BAE Systems will provide Malaysia a UK government-backed financing deal if it decides to replace its fleet of combat jets with the Eurofighter Typhoon, senior company officials said. Malaysia has for several years been weighing France’s Rafale jet and the Eurofighter Typhoon, built by a European consortium including Britain’s BAE, as it looks to buy up to 18 jets to replace its Russian MiG-29s - most of which are grounded. The contest, potentially worth over $2 billion, is one of the biggest fighter deals under consideration in Asia. Financing would be provided via the UK Export Finance export credit agency.

https://www.reuters.com/article/us-bae-systems-malaysia/bae-proposes-uk-governme...


No job estimates on arms export plan

(Associated Press Australia, Sydney, 28 February 2018) The Defence Department can't say exactly how many Australian jobs will be created out of the Turnbull government's plan to make the country a top 10 global arms exporters in the next decade. The issue was canvassed during a robust exchange between Greens senator Peter Whish-Wilson and Defence Minister Marise Payne at a Senate estimates hearing on Wednesday. The centrepiece of the government's ambitious plan is a $3.8 billion defence export facility within the export credit agency to help companies get finance to underpin sales of equipment overseas. "How is this good bang for our buck?" Senator Whish-Wilson asked, adding he wanted evidence it was the most cost-effective way for the government to create jobs. Department official Marc Ablong said no calculations had been carried out. "It's up to other agencies to determine whether there are more cost-effective ways for the government to spend the government's resources," Mr Ablong said.

http://www.news.com.au/national/breaking-news/no-job-estimates-on-arms-export-pl...


Western banks rush to gain deals on China's Belt and Road Initiative

(Xinhua, Beijing, 28 February 2018) With China's Belt and Road Initiative gaining more recognition globally, Western banks are rushing in for a piece of the pie in this once in a generation opportunity. British and U.S. banks, including Citigroup, HSBC and Standard Chartered have been seizing opportunities brought about by the initiative proposed by Chinese President Xi Jinping in 2013. The initiative aims to create greater trade, infrastructure and people-to-people links between Asia, Europe, Africa and beyond by reviving and expanding the ancient Silk Road routes. The modern version comprises an overland Silk Road Economic Belt and a 21st Century Maritime Silk Road. As one example, Standard Chartered Bank has taken the initiative as a key part of its plan to generate the revenue growth necessary to achieve its target of making a return on equity above 10 percent. The bank has won 20 financing deals linked to the initiative over the past four years, such as a 515 million U.S. dollars project financing for a power plant in Zambia, a 200 million dollars loan for a Bangladesh electricity plant, and a 42 million dollars export credit facility for a gas terminal in Sri Lanka. [We will be following how ECAs swing in behind the banks on this initiative.]

http://www.xinhuanet.com/english/2018-02/28/c_137005861.htm


U.S. Treasury official slams China's 'non-market behavior'

(Reuters, Washington, 21 February 2018) The U.S. Treasury’s top diplomat ramped up his criticisms of China’s economic policies on Wednesday, accusing Beijing of “patently non-market behavior” and saying that the United States needed stronger responses to counter it. He said market-oriented, democratic governments were awakening to the challenges posed by China’s economic system, including from its state-owned banks and export credit agencies. And he reiterated his view that China had stopped liberalizing its economy and was actually reversing these trends. China says that its state-owned enterprises operate on free-market principles and is battling within the World Trade Organization’s dispute settlement system to be recognized as a “market economy” -- a designation that would weaken U.S. and EU trade defenses. [and their own ECA trade subsidies?]

https://www.reuters.com/article/us-usa-china-treasury/u-s-treasury-official-slam...


US leads the way on protectionism in 2017 with tarifs and export credit

(Global Trade Review, London, 22 February 2018) No less than 467 protectionist measures were implemented worldwide in 2017, with the US responsible for 90 of them. But while protectionism is still rising, the scale of the increase is slowing: in 2016 there were 827 new measures introduced. Research from Euler Hermes, a trade credit insurer, found that the US “decided to bolster measures to counteract perceived protectionism from key competitors” in 2017. The Trump administration implemented 30 new import tariff measures, 20 anti-dumping measures and 17 tariffs on China alone, with the headline tariff being the 30% import tariff on Chinese solar panels. Euler Hermes also found that many trading powerhouses use what it considers to be protectionism to boost their exports. Among these is export credit agency (ECA) support, with Japan being highlighted for adopting 137 protectionist measures pertaining to its ECAs over the past four years.

https://www.gtreview.com/news/global/us-lead-the-way-on-protectionism-in-2017/


Bipartisan group of House lawmakers urge action on Export-Import Bank nominees

(The Hill, Washington, 20 Feb 2018) A bipartisan group of 68 House lawmakers are urging Senate leaders to get the Export-Import Bank running at full speed again. In December, the Senate Banking Committee approved four nominees to the Ex-Im board — Kimberly Reed, Spencer Bachus, Judith Pryor and Claudia Slacik. Since 2015, the Ex-Im Bank has been without a quorum on its board, which prohibits the agency from making deals of more than $10 million. Without a quorum in fiscal 2017, the bank only authorized $2.4 billion in loans, guarantees and insurance, supporting just 2,412 exporters, 40,000 jobs and $7.4 billion in U.S. export sales, the letter said. That is a sharp decline from 2014, when the bank approved $20.5 billion in business, which supported 3,563 exporters, 165,000 jobs, and $27.5 billion in exports.

http://thehill.com/policy/finance/374755-bipartisan-group-of-house-lawmakers-urg...


U.S. urges help for Iraq, extends $3 billion Ex-Im credit line

(Reuters, Kuwait, 13 February 018) The United States has urged members of the coalition fighting Islamic State to help rebuild Iraq or risk a reversal of the gains made against the group. Secretary of State Tillerson said the official U.S. export credit agency, the Export-Import Bank of the United States (EXIM), would sign a $3 billion memorandum of understanding with Iraq’s finance ministry “that will set a stage for future cooperation”. Iraqi Prime Minister Haider al-Abadi, whose government puts the costs of reconstruction at more than $88 billion, said Iraq could not rebuild without outside help.  Iraq received pledges of $30 billion, mostly in credit facilities and investment, on Wednesday from allies but this fell short of the $88 billion Baghdad says it needs to recover from three years of war. Officials say almost $23 billion is needed for short-term reconstruction and over $65 billion in the medium term. UNDP Administrator Achim Steiner told Reuters Iraq might have been unable to attract more pledges due to its association with corruption. Investors see Iraq as the 10th most corrupt country, according to Transparency International.

https://www.reuters.com/article/us-usa-tillerson-mideast/u-s-urges-help-for-iraq...


South Africa joins Afreximbank as a shareholder

(Business Live, Johannesburg, 20 February 2018) Showing its commitment to promoting intra-African trade and economic integration, South Africa has taken up shareholding in the African Export-Import Bank (Afreximbank), the continental multilateral trade finance institution. The South African government is represented by the Export Credit Insurance Corporation of South Africa (ECIC) as its designated investor, in line with the terms of the provisions of the charter of the bank. The shareholding makes South Africa the 47th African country to join Afreximbank as a participating state and/or shareholder. “South Africa accounts for about 30%–35% of total intra-African trade,” he added, “making its membership critical for the attainment of the bank's strategic goal of moving intra-African trade share of Africa’s total trade from about 15% currently to 22% by 2021, and raising its annual value to more than $250bn by that year.

https://www.businesslive.co.za/bd/business-and-economy/2018-02-20-sa-joins-afrex...


South Africa’s Guptas hid Bombardier jet, EDC says in court repossession efforts

(Globe and Mail, Toronto, 19 February 2018) Canada's export credit agency is worried that a Canadian EDC financed Bombardier luxury jet could become the escape vehicle for the controversial Gupta brothers as they flee a corruption prosecution in South Africa, according to court papers filed by the agency in Johannesburg.

https://www.theglobeandmail.com/news/world/south-africas-guptas-hid-bombardier-j...


Armenian NGO challenges controversial ECA supported gold mine

(Armenian Environmental Front, Yerevan, 11 February 2018) In February 2017, the Armenian Environmental Front (AEF) published information on supporters of a gold mine in Amulsar Mountain next to the resort of Jermuk. They now have presented the key entities responsible for funding and equipping the Amulsar gold mine project. The AEF is challenging plans to develop a gold mine in close proximity to the environmentally sensitive Jermuk resort in violation of Armenian legislation. Environmental and social impact assessments are said to be substantially incomplete and incorrect and international expert groups from Australia, USA and Canada, having studied dozens of documents available on the Lydian International corporate website, have presented their assessments and conclusions on the environmental risks of the gold project in Amulsar. They note: "Our overall conclusion remains that the high risk of acid drainage and contaminant leaching, the poor geochemical evaluation, the inadequate water quality predictions and mitigation measures and Lydian’s inexperience combine to make this an environmentally high-risk project during mining and for a lengthy period after operations cease." The AEF notes that a number of ECAs and international finance bodies have supported the project, among them: SEK - Sweden’s Export Credit Corporation (US$50 million via Dutch ING Bank); EKN - Swedish Export Credit Agency (Guarantees for the SEK credit); Sandvik SRP AB – a Swedish mining equipment company (recipient of the SEK & EKN support); the Swiss-Swedish ABB Group; the International Finance Corporation (IFC) of the World Bank Group (IFC's compliance branch concluded in 2017 that there were "shortcomings in IFC’s appraisal and supervision of the project as relate to a  number of the issues raised in the complaints and found that IFC’s pre-investment E&S review of the project was not commensurate to risk.";  and the European Bank for Reconstruction and Development (EBRD) (Which has apparetnly refused to respond to the arguments of Armenian ecological organizations concerning social and ecological risks of the project and continues to support it.)

http://www.armecofront.net/en/amulsar-2/those-responsible-for-funding-and-equipp...


Brazil grants US$2 billion ECA credit line to Angola

(Macahub, Luanda, 12 February 2018) Brazil has agreed to grant a credit insurance facility to Angola under the Export Guarantee Fund and support for the equalisation of interest rates through the Brazilian Export Financing Programme (Proex) for goods and services up to US$2 billion. Brazilian resources now made available through the state-owned National Bank for Economic and Social Development (BNDES) will be used to carry out some projects included in the Public Investment Programme of the State Budget. BNDES has financed several projects with social and economic impact in Angola, including the construction of the Laúca Hydroelectric Dam, the Cambambe Dam, the water supply system for the cities of Benguela, Lobito and Catumbela, the construction of the Luanda-Viana Expressway, the construction of Catumbela International Airport and the construction of the Capanda Industrial Hub, among others.

https://macauhub.com.mo/2018/02/12/pt-brasil-concede-linha-de-credito-de-2000-mi...


Anadarko agrees Mozambique LNG sale, banks/ECAs discuss finance terms

(Reuters, London, 20 February 2018) Anadarko Petroleum’s plan to export liquefied natural gas (LNG) from Mozambique moved a step closer to completion on Tuesday after it agreed a 15-year LNG sales and purchase agreement (SPA) with Electricite de France. France’s state-controlled utility will take 1.2 million tonnes of LNG annually from the Mozambique Area 1 marketing venture led by Anadarko and consisting of Japanese trader Mitsui, India’s ONGC Videsh and Thailand’s PTT, among others. LNG project developers across the board have struggled to find the long-term buyers needed before banks and export credit agencies could commit financing for new plants.

https://af.reuters.com/article/commoditiesNews/idAFL8N1QA7U4


What's New January 2018

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.

  • Aussie defence fund a reminder of ECAs’ murky history with the arms industry
  • Australian ECA underwriting arms exports is 'baffling', expert says
  • Turkish, French, Italian firms awarded missile system development project
  • Aramco Seeks Cheap ECA backed loans prior to IPO
  • Asia could attract $250B in coal power investment
  • G20 billions feed Viet Nam's coal-fired future
  • US Ex-Im may back a controversial Vietnamese coal plant
  • Exporters urging Ottawa and EDC to undo uneven application of Russian sanctions
  • Mexican chapter in the Odebrecht saga underscores need to bolster transparency at EDC
  • Does the OECD really support environmentally conscious economic policies?
  • Airbus, Boeing Hopeful on Return of State-Backed Plane Financing
  • China eyes stronger ties with Mekong countries with ECA support
  • Britain cancels plan to forgive North Korean ECA debt
  • Britain doubles ECA backing for India

ECAs go to Market

(Finance & Trade Watch and CEE Bankwatch, Dec. 2017) Export credits are big business. Members of the industry’s Berne Union, both state and private, insured approximately USD 1.9 trillion per year between 2012 and 2016, of which USD1 trillion was state ECA insured. That amount far exceeds the total investments of multilateral lenders such as the World Bank and the regional development banks and represents some 11% of world trade Between 2015 and 2017, Finance & Trade Watch and Bankwatch, together with their national partners, researched state export credit agencies (ECAs) in seven countries of the European Union (Austria, Czech Republic, Croatia, Hungary, Poland, Romania and Slovakia). The aim of this research was to assess how the procedures and performance of these institutions comply with the relevant national, European and international regulatory frameworks. These include transparency, accountability, environmental and social standards as reflected in the OECD (Common Approaches), the EU (ECA Regulation) and the UN (Sustainable Development Goals, the Aarhus Convention and the Paris Agreement). Their report finds: a lack of ECA transparency, dubious investements, particularly in fossil fuels, projects contrary to national greenhouse gas commitments under the Paris Agreement, and OECD and EU standards and monitoring which are voluntary and unable to guarantee that prohibited investments are being approved. This has led to their involvement in a number of economically and politically-compromising projects. This first-of-its-kind research examines ECAs in the ‘new’ EU Member States and compares these with an example from the EU 15 – the Austrian ECA OeKB – as well as examples from other EU 15 countries. It shows regulatory gaps and offers a range of policy recommendations. The full report is available here and a summary here.

http://www.intellinews.com/comment-export-credit-agencies-lurk-in-the-shadows-of...


G20 Countries' Public Coal Financing Reaches 5 Year High

(Natural Resources Defense Council, New York, 8 February 2018) In 2017, financing from G20 governments for overseas coal projects reached a 5 year high, totaling at least $13 billion in loans, credits, and guarantees. This financial support for coal projects directly undermines G20 climate commitments and ignores the reality that a rapid coal phase out is needed if the world is to reach the 1.5 degree temperature goal under the Paris Climate Agreement. This is the 2nd year in a row that G20 public financing has increased for coal power projects in foreign countries. G20 public financing here refers to financial backing from government export credit agencies, like Japan Bank for International Cooperation, development banks, like China Development Bank, and government insurance entities, like Korea Trade Insurance Corporation. Public financial support is given to benefit domestic companies who are involved in projects abroad — for example, in 2017, Japan Bank of International Cooperation provided a $730 million dollar loan to enable Marubeni, a Japanese company, to develop the 1000 MW Cirebon 2 Coal Power Station in Indonesia. Public financial support can take the form of loans, guarantees, export and import credits, grants, and equity financing.

https://www.nrdc.org/experts/han-chen/g20-countries-public-coal-financing-reache...


Vietnam Pulls Request for U.S. Ex-Im Help to Build a Coal-Fired Power Plant

(New York Times, Hong Kong, 13 February 2018) A Vietnamese company is no longer seeking American financial support to build a coal-fired power plant in Vietnam, bringing to an abrupt end a closely watched test of whether Washington would back international projects that could potentially contribute to climate change. On Thursday, the Export-Import Bank of the United States, a lender run by the American government, said the Vietnamese state-controlled company, PetroVietnam, had withdrawn its application for financial support. In this case, a green light would have allowed PetroVietnam to purchase millions of dollars’ worth of turbines and other equipment from General Electric, the American manufacturer. The project, which is already under construction, faced intense criticism inside and outside the United States. Environmental and other groups said the project would have had a greater environmental impact than reports submitted by PetroVietnam had suggested. The World Bank and other major institutions have increasingly avoided backing projects supported by developing countries that burn coal and other fossil fuels, which emit greenhouse gases that contribute to climate change. The UK’s version of the Ex-Im Bank had declined to offer financial support for the Long Phu 1 project for similar reasons.

https://www.nytimes.com/2018/02/11/business/us-exim-vietnam-coal.html


Standard Chartered & ECAs ‘breaching climate policy’ with Vietnam coal plant investment

(Climate Home News, London, 14 February 2018) The London-based bank plans to co-finance Nghi Son 2 power plant, which NGOs say uses dirty old technology, against company and OECD guidelines. The proposed financing arrangements also appear to breach the Organisation for Economic Cooperation and Development’s guidelines on coal, which restrict governments from using public export finance for new coal plants. Both Japan's and Korea’s export credit agencies, which help companies to export and win international business, are backing the project. Environmental NGOs Market Forces and Greenpeace analysed data from the project’s environmental impact assessment,  released last week by Japan Bank for International Cooperation (JBIC) — an export credit agency wholly owned by the Japanese government. Vietnam’s expansion of coal-fired power generation to meet booming energy demand has led to major concerns over public health. The number of coal plants in Vietnam is projected to rise from 38 to 133, including all plants currently planned or under construction. Citing a study published in the journal Environmental Science & Technology  last year, Myllyvirta said coal-fired power plants were responsible for an estimated 4,300 premature deaths in Vietnam in 2011 alone. The study forecasts that by 2030 there will be more than 19,220 deaths per year due to coal pollution.

http://www.climatechangenews.com/2018/02/14/standard-chartered-breaching-climate...


Attorney calls for sanctions against Energy Transfer Partners in Dakota Access pipeline suit

(Associated Press, Bismark, 9 February 2018) Attorneys for a Florida-based environmental publication want a federal judge in North Dakota to sanction the Texas-based developer of the Dakota Access oil pipeline in a dispute over whether the publication can be sued. Earth First Journal maintains Energy Transfer Partners attorneys aren't acting in good faith by associating the publication with the Earth First social movement, which the company contends was part of an effort to undermine the pipeline project and the company. Energy Transfer in August sued Greenpeace, BankTrack and Earth First for up to $1 billion, alleging the environmental groups disseminated false and misleading information about the $3.8 billion pipeline moving oil from North Dakota through South Dakota and Iowa to Illinois, and instigated violent protests. Journal attorney Pamela Spees maintains the journal and movement aren't the same thing, and that the insistence of company attorneys to the contrary is "intentional and reckless disregard of their duties to the court." Spees asked Hovland to order the plaintiffs to pay the center's fees and to educate lawyers at the plaintiff firms about the Federal Rules of Civil Procedure, which she claims have been violated.

https://www.nydailynews.com/newswires/news/business/attorney-calls-sanctions-dak...


Airbus executives get swept away by a corruption investigation

(The Economist, Singapore, 8 February 2018) A management shake-out may reawaken national rivalries at the European aerospace giant. “The success of Airbus is intimately linked to the success of John [Leahy],” says Eric Schulz, successor to John Leahy, who has been chief salesman for the planemaker since 1994. Mr Leahy’s aggressive strategy to gain orders expanded Airbus’s market share for civil jets from 18% in 1994 to over 50%. But this year’s Singapore Airshow, which began on February 6th, will be Mr Leahy’s last before retirement. Staff turnover does not stop there. In December the firm said Tom Enders, its German-born chief executive, would step down in 2019; his French second-in-command, Fabrice Brégier, will leave this month. These changes follow the news that several countries, including Britain, France and America, are investigating allegations that in the past Airbus bribed officials to win contracts. That created divisions between French and German executives over how to respond.

https://www.economist.com/news/business/21736580-management-shake-out-may-reawak...


BAE proposes UKEF financing to Malaysia for Typhoon jet deal

(Reuters, London, 12 February 2018) BAE Systems will provide Malaysia a UK government-backed financing deal if it decides to replace its fleet of combat jets with the Eurofighter Typhoon, senior company officials said. Malaysia has for several years been weighing France’s Rafale jet and the Eurofighter Typhoon, built by a European consortium including Britain’s BAE, as it looks to buy up to 18 jets to replace its Russian MiG-29s - most of which are grounded. The contest, potentially worth over $2 billion, is one of the biggest fighter deals under consideration in Asia. Financing would be provided via the UK Export Finance export credit agency.

https://www.reuters.com/article/us-bae-systems-malaysia/bae-proposes-uk-governme...


No job estimates on arms export plan

(Associated Press Australia, Sydney, 28 February 2018) The Defence Department can't say exactly how many Australian jobs will be created out of the Turnbull government's plan to make the country a top 10 global arms exporters in the next decade. The issue was canvassed during a robust exchange between Greens senator Peter Whish-Wilson and Defence Minister Marise Payne at a Senate estimates hearing on Wednesday. The centrepiece of the government's ambitious plan is a $3.8 billion defence export facility within the export credit agency to help companies get finance to underpin sales of equipment overseas. "How is this good bang for our buck?" Senator Whish-Wilson asked, adding he wanted evidence it was the most cost-effective way for the government to create jobs. Department official Marc Ablong said no calculations had been carried out. "It's up to other agencies to determine whether there are more cost-effective ways for the government to spend the government's resources," Mr Ablong said.

http://www.news.com.au/national/breaking-news/no-job-estimates-on-arms-export-pl...


Western banks rush to gain deals on China's Belt and Road Initiative

(Xinhua, Beijing, 28 February 2018) With China's Belt and Road Initiative gaining more recognition globally, Western banks are rushing in for a piece of the pie in this once in a generation opportunity. British and U.S. banks, including Citigroup, HSBC and Standard Chartered have been seizing opportunities brought about by the initiative proposed by Chinese President Xi Jinping in 2013. The initiative aims to create greater trade, infrastructure and people-to-people links between Asia, Europe, Africa and beyond by reviving and expanding the ancient Silk Road routes. The modern version comprises an overland Silk Road Economic Belt and a 21st Century Maritime Silk Road. As one example, Standard Chartered Bank has taken the initiative as a key part of its plan to generate the revenue growth necessary to achieve its target of making a return on equity above 10 percent. The bank has won 20 financing deals linked to the initiative over the past four years, such as a 515 million U.S. dollars project financing for a power plant in Zambia, a 200 million dollars loan for a Bangladesh electricity plant, and a 42 million dollars export credit facility for a gas terminal in Sri Lanka. [We will be following how ECAs swing in behind the banks on this initiative.]

http://www.xinhuanet.com/english/2018-02/28/c_137005861.htm


U.S. Treasury official slams China's 'non-market behavior'

(Reuters, Washington, 21 February 2018) The U.S. Treasury’s top diplomat ramped up his criticisms of China’s economic policies on Wednesday, accusing Beijing of “patently non-market behavior” and saying that the United States needed stronger responses to counter it. He said market-oriented, democratic governments were awakening to the challenges posed by China’s economic system, including from its state-owned banks and export credit agencies. And he reiterated his view that China had stopped liberalizing its economy and was actually reversing these trends. China says that its state-owned enterprises operate on free-market principles and is battling within the World Trade Organization’s dispute settlement system to be recognized as a “market economy” -- a designation that would weaken U.S. and EU trade defenses. [and their own ECA trade subsidies?]

https://www.reuters.com/article/us-usa-china-treasury/u-s-treasury-official-slam...


US leads the way on protectionism in 2017 with tarifs and export credit

(Global Trade Review, London, 22 February 2018) No less than 467 protectionist measures were implemented worldwide in 2017, with the US responsible for 90 of them. But while protectionism is still rising, the scale of the increase is slowing: in 2016 there were 827 new measures introduced. Research from Euler Hermes, a trade credit insurer, found that the US “decided to bolster measures to counteract perceived protectionism from key competitors” in 2017. The Trump administration implemented 30 new import tariff measures, 20 anti-dumping measures and 17 tariffs on China alone, with the headline tariff being the 30% import tariff on Chinese solar panels. Euler Hermes also found that many trading powerhouses use what it considers to be protectionism to boost their exports. Among these is export credit agency (ECA) support, with Japan being highlighted for adopting 137 protectionist measures pertaining to its ECAs over the past four years.

https://www.gtreview.com/news/global/us-lead-the-way-on-protectionism-in-2017/


Bipartisan group of House lawmakers urge action on Export-Import Bank nominees

(The Hill, Washington, 20 Feb 2018) A bipartisan group of 68 House lawmakers are urging Senate leaders to get the Export-Import Bank running at full speed again. In December, the Senate Banking Committee approved four nominees to the Ex-Im board — Kimberly Reed, Spencer Bachus, Judith Pryor and Claudia Slacik. Since 2015, the Ex-Im Bank has been without a quorum on its board, which prohibits the agency from making deals of more than $10 million. Without a quorum in fiscal 2017, the bank only authorized $2.4 billion in loans, guarantees and insurance, supporting just 2,412 exporters, 40,000 jobs and $7.4 billion in U.S. export sales, the letter said. That is a sharp decline from 2014, when the bank approved $20.5 billion in business, which supported 3,563 exporters, 165,000 jobs, and $27.5 billion in exports.

http://thehill.com/policy/finance/374755-bipartisan-group-of-house-lawmakers-urg...


U.S. urges help for Iraq, extends $3 billion Ex-Im credit line

(Reuters, Kuwait, 13 February 018) The United States has urged members of the coalition fighting Islamic State to help rebuild Iraq or risk a reversal of the gains made against the group. Secretary of State Tillerson said the official U.S. export credit agency, the Export-Import Bank of the United States (EXIM), would sign a $3 billion memorandum of understanding with Iraq’s finance ministry “that will set a stage for future cooperation”. Iraqi Prime Minister Haider al-Abadi, whose government puts the costs of reconstruction at more than $88 billion, said Iraq could not rebuild without outside help.  Iraq received pledges of $30 billion, mostly in credit facilities and investment, on Wednesday from allies but this fell short of the $88 billion Baghdad says it needs to recover from three years of war. Officials say almost $23 billion is needed for short-term reconstruction and over $65 billion in the medium term. UNDP Administrator Achim Steiner told Reuters Iraq might have been unable to attract more pledges due to its association with corruption. Investors see Iraq as the 10th most corrupt country, according to Transparency International.

https://www.reuters.com/article/us-usa-tillerson-mideast/u-s-urges-help-for-iraq...


South Africa joins Afreximbank as a shareholder

(Business Live, Johannesburg, 20 February 2018) Showing its commitment to promoting intra-African trade and economic integration, South Africa has taken up shareholding in the African Export-Import Bank (Afreximbank), the continental multilateral trade finance institution. The South African government is represented by the Export Credit Insurance Corporation of South Africa (ECIC) as its designated investor, in line with the terms of the provisions of the charter of the bank. The shareholding makes South Africa the 47th African country to join Afreximbank as a participating state and/or shareholder. “South Africa accounts for about 30%–35% of total intra-African trade,” he added, “making its membership critical for the attainment of the bank's strategic goal of moving intra-African trade share of Africa’s total trade from about 15% currently to 22% by 2021, and raising its annual value to more than $250bn by that year.

https://www.businesslive.co.za/bd/business-and-economy/2018-02-20-sa-joins-afrex...


South Africa’s Guptas hid Bombardier jet, EDC says in court repossession efforts

(Globe and Mail, Toronto, 19 February 2018) Canada's export credit agency is worried that a Canadian EDC financed Bombardier luxury jet could become the escape vehicle for the controversial Gupta brothers as they flee a corruption prosecution in South Africa, according to court papers filed by the agency in Johannesburg.

https://www.theglobeandmail.com/news/world/south-africas-guptas-hid-bombardier-j...


Armenian NGO challenges controversial ECA supported gold mine

(Armenian Environmental Front, Yerevan, 11 February 2018) In February 2017, the Armenian Environmental Front (AEF) published information on supporters of a gold mine in Amulsar Mountain next to the resort of Jermuk. They now have presented the key entities responsible for funding and equipping the Amulsar gold mine project. The AEF is challenging plans to develop a gold mine in close proximity to the environmentally sensitive Jermuk resort in violation of Armenian legislation. Environmental and social impact assessments are said to be substantially incomplete and incorrect and international expert groups from Australia, USA and Canada, having studied dozens of documents available on the Lydian International corporate website, have presented their assessments and conclusions on the environmental risks of the gold project in Amulsar. They note: "Our overall conclusion remains that the high risk of acid drainage and contaminant leaching, the poor geochemical evaluation, the inadequate water quality predictions and mitigation measures and Lydian’s inexperience combine to make this an environmentally high-risk project during mining and for a lengthy period after operations cease." The AEF notes that a number of ECAs and international finance bodies have supported the project, among them: SEK - Sweden’s Export Credit Corporation (US$50 million via Dutch ING Bank); EKN - Swedish Export Credit Agency (Guarantees for the SEK credit); Sandvik SRP AB – a Swedish mining equipment company (recipient of the SEK & EKN support); the Swiss-Swedish ABB Group; the International Finance Corporation (IFC) of the World Bank Group (IFC's compliance branch concluded in 2017 that there were "shortcomings in IFC’s appraisal and supervision of the project as relate to a  number of the issues raised in the complaints and found that IFC’s pre-investment E&S review of the project was not commensurate to risk.";  and the European Bank for Reconstruction and Development (EBRD) (Which has apparetnly refused to respond to the arguments of Armenian ecological organizations concerning social and ecological risks of the project and continues to support it.)

http://www.armecofront.net/en/amulsar-2/those-responsible-for-funding-and-equipp...


Brazil grants US$2 billion ECA credit line to Angola

(Macahub, Luanda, 12 February 2018) Brazil has agreed to grant a credit insurance facility to Angola under the Export Guarantee Fund and support for the equalisation of interest rates through the Brazilian Export Financing Programme (Proex) for goods and services up to US$2 billion. Brazilian resources now made available through the state-owned National Bank for Economic and Social Development (BNDES) will be used to carry out some projects included in the Public Investment Programme of the State Budget. BNDES has financed several projects with social and economic impact in Angola, including the construction of the Laúca Hydroelectric Dam, the Cambambe Dam, the water supply system for the cities of Benguela, Lobito and Catumbela, the construction of the Luanda-Viana Expressway, the construction of Catumbela International Airport and the construction of the Capanda Industrial Hub, among others.

https://macauhub.com.mo/2018/02/12/pt-brasil-concede-linha-de-credito-de-2000-mi...


Anadarko agrees Mozambique LNG sale, banks/ECAs discuss finance terms

(Reuters, London, 20 February 2018) Anadarko Petroleum’s plan to export liquefied natural gas (LNG) from Mozambique moved a step closer to completion on Tuesday after it agreed a 15-year LNG sales and purchase agreement (SPA) with Electricite de France. France’s state-controlled utility will take 1.2 million tonnes of LNG annually from the Mozambique Area 1 marketing venture led by Anadarko and consisting of Japanese trader Mitsui, India’s ONGC Videsh and Thailand’s PTT, among others. LNG project developers across the board have struggled to find the long-term buyers needed before banks and export credit agencies could commit financing for new plants.

https://af.reuters.com/article/commoditiesNews/idAFL8N1QA7U4


What's New December 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.

  • Inside EDC one of Canada's most secretive agencies
  • Banks criticised for funding coal deals despite Paris agreement
  • Pipeline developer sues social movements
  • The UK arms trade with repressive regimes has no moral or economic sense
  • Turkey to Acquire Four Russian S-400 Missile Divisions with ECA support
  • Lenders jostle for mega PNG LNG financing deal
  • Africa – a new frontier for Floating LNG projects
  • Senate Panel Rejects Trump's Nominee to Lead Export-Import Bank
  • Former Ex-Im Bank Director under investigation for undisclosed foreign agent contract
  • Indonesia - Dirty man of Asia deepens addiction to coal
  • UKEF lines up new delegated supply chain finance (SCF) guarantees
  • An African corridor to prosperity [and coal fired global warming!]
  • Sinopec Signs $1b Iranian Abadan Refinery Expansion Deal
  • Kuwait Seals US$6.245bn ECA-Backed Corporate Transaction

Inside EDC one of Canada's most secretive agencies

(The Walrus, Toronto, 19 December 2017) Export Development Canada lends foreign buyers billions of taxpayer dollars. Critics say it's knowingly banking some of the world's worst regimes.  EDC has perfected the art of lending billions of taxpayer dollars to scandal-ridden foreign buyers. In May 2017, a trove of hundreds of thousands of emails was leaked to the press from an organization belonging to the Gupta family of South Africa. In a lengthy email thread strung out over the course of 2014, it was revealed that Bombardier had negotiated a C$52 million sale of a luxury jet to a Gupta subsidiary, with US$41 million of the jet’s financing provided directly to the Guptas by Export Development Canada, a Canadian Crown corporation. The Guptas are not EDC’s only controversial clients. The agency’s client list is studded with some of the most ­scandal-ridden multinationals on the planet including Kinross Gold whose West ­African mining operations were, as of 2016, under investigation by the United States Securities and Exchange Commission for bribery and corruption. [ECA-Watch member Above Ground has questioned EDC financing for controversial projects such as Omai Gold Mines in Guyana and Petrobas in Brazil, with EDC refusing to comment on the possible illegal or inappropriate use of Canadian tax dollars. Above Ground's 11 December 2017 report on Kinross Gold shows that, among other harms, Kinross’ dramatic expansion of the mine displaced the residents of traditional communities formed over a century ago by former African slaves who have land rights under Brazilian law. The legal process to formalize their collective title was well underway when Kinross announced its expansion plan and Export Development Canada provided financing, forcing them off their land. The report also raises concern about environmental oversight of the mine, which is located within 500 metres of neighbourhoods where hundreds of families live, as well as safety measures to keep people from entering the mine site.]  EDC activities are protected by disclosure protocols that are entirely opaque, with the result that few in ­Canada - including the Minister presiding over it - seem to know the full details about what the agency does, who it finances, and why. With EDC’s mandate up for review in 2018, it seems like a good time to examine the considerable reputational risks the agency often takes. [As well as its compliance with its own international, WTO and OECD agreed due diligence requirements on human rights, environmental standards and corruption.] On December 21, 2017, 2 days after this article was published online, EDC announced that it was suddenly terminating its $41 million loan to the Guptas for the purchase of a luxury Bombardier jet.

https://thewalrus.ca/inside-one-of-canadas-most-secretive-agencies/


Banks criticised for funding coal deals despite Paris agreement

(ECA Watch, Ottawa, 31 December 2017) At the One Planet Summit in Paris in December 2017 a number of NGO, environmental and social movement organizations released briefings and research reports highlighting fossil fuel projects that are being funded by multilateral and national development banks and export credit agencies. The Big Shift global campaign released a briefing titled Dirty Dozen (pdf); complementary reports, ‘Banks vs. the Paris Agreement’ and ‘Investors vs. the Paris Agreement’ (pdf) were launched by Rainforest Action Network, BankTrack, Urgewald, Friends of the Earth France, and Re:Common at the Climate Finance Day in Paris; and the Natural Resource Defense Council released Power Shift: International Coal vs. Renewable Energy Finance.




Pipeline developer sues social movements

(Kallanish Energy News, Greensburg, 18 December 2017) Dakota Access Pipeline developer Energy Transfer Partners (ETP) and Florida-based environmental publication Earth First Journal are arguing in federal court whether something called a “social movement” can be sued. ETP in August filed a lawsuit against enviro-groups Earth First, Greenpeace and BankTrack, alleging they issued false and misleading information about the $3.8 billion pipeline, to move North Dakota crude to Patoka, Ill., interfered with construction, and damaged the company's reputation and finances through illegal acts. The company's lawsuit, filed in federal court in North Dakota, seeks damages that could approach $1 billion, The Associated Press reported.

https://www.kallanishenergy.com/2017/12/18/etp-publication-argue-over-social-mov...


The UK arms trade with repressive regimes has no moral or economic sense

(The Guardian, London, 20 December 2017) As the spectre of Brexit emerges, so do the first meaningful signs of the Tory vision of “building a global Britain”. The Department for International Trade, set up by Theresa May to put some flesh on the bones of her slogan, has prioritised arms sales for Britain’s post-Brexit industrial policy. The DIT, which licences Britain’s exports guns, planes and bombs, has overseen a sharp spike in sales to repressive regimes, many of which it has identified as “priority markets”. The biggest of these is Saudi Arabia, which is using our arms to bomb into famine its political enemies in Yemen. Our arms export control regime clearly states that it is illegal for the government to licence weapons to nations that oppress their own people or violate international humanitarian law. When buyers cannot afford our weapons, the government subsidises loans for them through export credit guarantees; UK Export Finance, which is supposed to support all British exports, says 50% of the support it provides (in the form of loans or guarantees) was given to defence exports.

https://www.theguardian.com/commentisfree/2017/dec/20/uk-arms-trade-no-moral-or-...


Turkey to Acquire Four Russian S-400 Missile Divisions with ECA support

(Prensa Latina, Moscow, 28 December 2017) Turkey will acquire, for 2.5 billion dollars, four divisions of the modern Russian S-400 surface-to-air missile divisions, which will be delivered in 2020. The finance ministries of Turkey and Russia have concluded negotiations for the granting of an export credit to Ankara, Chemezov head of the Russian state conglomerate Rostec said. Turkey will pay an advance equivalent to 45% of the total and the Russian side will grant an export credit that will cover the other 55% of the contract. Ankara [a NATO member] received strong criticism and even threats from the United States for its decision to acquire the Russian arms. In other Russian ECA news, four Iranian banks have signed an "unlimited finance deal" with the Eximbank of Russia for public and private sector approved projects using Russian technical and engineering services.

http://www.plenglish.com/index.php?o=rn&id=22657&SEO=turkey-to-acquire-four-russ...


Lenders jostle for mega PNG LNG financing deal

(Australian Financial Review, Sydney, 5 December 2017) Key project debt lenders have been giving their passports and travel insurers a workout as they troop up to Papua New Guinea to get to grips with what could be the region's biggest financing since the record US$20 billion deal for Ichthys LNG. While the final configuration of the next stage of LNG expansion in PNG is yet to be settled, those behind the circa US$17 billion project - primarily ExxonMobil, Total and Oil Search - are already well advanced. In considering funding export credit agencies are again expected to be well in evidence, while the backing of two oil majors and the sheer size of the project count in favour of commercial lender interest.

http://www.afr.com/street-talk/local-lenders-jostle-for-mega-png-financing-deal-...


Africa – a new frontier for Floating LNG projects

(LNG Worldshipping News, London, 4 December 2017)) Floating LNG (FLNG) is opening new offshore gas basins for LNG development in Africa. The ownership structure of Africa’s new LNG production and the willingness of international oil companies to deploy new technologies will drive the commoditisation of LNG and cement its growing role as such in the global trading of energy. Uniquely, FLNG vessels will provide the first liquefaction plants in Mozambique and Cameroon and the technology is also expected to lead an expansion of capacity in Equatorial Guinea, Senegal and Mauritania. Italy’s Eni and its partners took a final investment decision on the 3.4M tonnes a year (mta) Coral FLNG scheme off Mozambique in June 2017. The project will be the first of this type to have as much as 60% of its cost funded on a project-finance basis, backed by 15 international banks and guaranteed by five export credit agencies. The financing was provided in the form of covered loans from five export credit agencies (Italy's Sace, China's Sinosure, Japan's Ksure, South Korea's Kexim, and Portugal's BPI) and two direct loans (one provided by Kexim, the other by an unnamed 'commercial bank').

http://www.lngworldshipping.com/news/view,africa-a-new-frontier-for-flng_49905.h...


Senate Panel Rejects Trump's Nominee to Lead Export-Import Bank

(New York Times, Washington, 19 December 2017) Two Republican senators broke with their party to block President Trump’s nominee to lead the Export-Import Bank, a setback for the White House that reflects deep divisions in the Republican Party over the role that the government should play in steering the United States economy toward prosperity. The nominee, Scott Garrett, a former representative and a Republican from New Jersey who had wanted to see the government’s export credit agency shuttered, was rejected by the Senate Banking Committee in a 13-to-10 vote. Since 2015, the agency has been hobbled by a lack of personnel necessary to approve projects over $10 million, formerly the bulk of the agency’s work. An estimated $42.2 billion worth of deals are stuck in the pipeline waiting for approval, which could support an estimated 250,000 American jobs, a spokeswoman for the Export-Import Bank said. Some of the biggest Ex-Im customers are General Electric, Boeing and Caterpillar, Some senators and the Trump administration have threatened to pull the other board nominees, leaving the bank without a quorum and barred from financing deals over $10 million and Boeing to fend for itself. However, in 2017 the Aircraft Finance Insurance Consortium has supported more than $1 billion of new airplane deliveries and Boeing has 661 firm orders for 2018, in addition to 6,600 backorders. Meanwhile it has been said that Boeing is upset that Garrett was getting help throughout the nomination process from Dan Murphy, a lobbyist for a high-powered Washington firm that counts Airbus among its clients.

https://www.nytimes.com/2017/12/19/us/politics/republicans-senate-export-import-...


Former Ex-Im Bank Director under investigation for undisclosed foreign agent contract

(Newsweek, Washington, 20 June 2017) Federal investigators probing the lobbying work of ousted national security adviser Michael Flynn are focused in part on the role of Bijan Kian, Flynn’s former business partner, according to a person interviewed by the FBI. In private conversations with potential clients, Kian portrayed himself as a rainmaker for Flynn, tapping into connections cultivated during a five-year tenure as a director at the U.S. Export-Import Bank, according to one person who worked with the firm. Inovo, a Netherlands-based company controlled by Turkish businessman Ekim Alptekin, hired Flynn Intel Group to research Fethullah Gulen’s activities in the United States, which he suspected were “poisoning” relations between the United States and Turkey. Like Turkey's President Tayyip Erdogan, Alptekin blamed the coup on followers of Gulen. Kian played a central role in securing and overseeing the Inovo contract, two people with knowledge of that project said. The FBI has been investigating whether Flynn’s consulting firm lobbied on behalf of Turkey - after being paid $530,000 by Inovo - without making the proper disclosure under the Foreign Agents Registration Act.

http://www.newsweek.com/flynn-trump-russia-investigation-turkey-bijan-kian-gulen...


Indonesia - Dirty man of Asia deepens addiction to coal

(The Nation, Bangkok, 30 December 2017) Already the world’s fifth-biggest greenhouse gas emitter,  Indonesia is leading Southeast Asia’s boom in coal-fired power. Already one of the world’s biggest carbon polluters because of deforestation, Indonesia has back-pedalled on a pledge to cap coal production. The government initially planned to reduce its coal production to 413 million tonnes this year, from 419 million tonnes in 2016. The figure was expected to fall to 406 million tonnes next year, before hovering at only 400 million from 2019. However, this year’s coal production has already reached 477 million tonnes, far outstripping last year’s 434 million tonnes. The boom is being bankrolled by foreign governments and banks, the Guardian reports. Activist group Market Forces examined 22 deals involving 13.1 gigawatts of coal-fired power in Indonesia and found that 91 per cent of the projects had the backing of foreign governments through export credit agencies or development banks. The majority of the money was coming from Japan and China, with the Japan Bank for International Cooperation involved in five deals and the Export-Import Bank of China involved in seven deals.

http://www.nationmultimedia.com/detail/opinion/30335079


UKEF lines up new delegated supply chain finance (SCF) guarantees

(Global Trade Review, London, 7 December 2017) UK Export Finance (UKEF) has announced plans for a new invoice financing scheme for exporters in a bid to boost exports through supply chain efficiency. GTR has learned that the new scheme will allow an exporter to set up a supply chain discounting facility with its bank, through which suppliers can receive up to 95% of their payment on invoice submission. The facility will be based on an export contract and support will be based on the buyer’s creditworthiness. UKEF will provide the bank with a guarantee for up to 80% of the amount of credit provided through the facility. The finer details of the scheme, which is due to be launched next year, are still being ironed out. Earlier in the year, the export credit agency (ECA) launched the Bank Delegation scheme, which gives banks authority to issue UKEF guarantees for their customers simply by telling UKEF they are issuing the guarantee based on the banks' own due diligence. [How UKEF will ensure compliance with its own international, WTO and OECD agreed due diligence requirements on human rights, environmental standards and corruption is not clear under this delegation of responsibility to private sector banks.]

https://www.gtreview.com/news/europe/ukef-lines-up-new-scf-scheme-2/


An African corridor to prosperity [and coal fired global warming!]

(African Law & Business, London, 7 December 2017) London's Linklaters & US firm White & Case, together with local law firms, have shared the plaudits in agreeing financing of the US$4 billion Nacala Corridor rail and port project, which spans Mozambique & Malawi. It involves Brazil's Vale & Japan's Mitsui and will enable the construction, refurbishment and operation of nearly 1000 kilometres of railway line, as well as the construction and operation of a coal terminal in the port of Nacala, linking Vale’s coal project in Tete Province, in western Mozambique home to some of the world’s richest remaining coal deposits, with a deep sea port to be constructed in Nacala – the so-called Nacala Corridor, in eastern Mozambique. Banks involved in the deal, who were advised by Linklaters, included the African Development Bank (AfDB), Export Credit Insurance Corporation of South Africa (ECIC), Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) together with ECIC and NEXI covered commercial banks.

https://www.africanlawbusiness.com/news/7797-a-corridor-to-prosperity


Sinopec Signs $1b Iranian Abadan Refinery Expansion Deal

(Financial Tribune, Tehran, 30 December 2017) China's Sinopec Engineering Company has signed a deal worth $1 billion to develop Abadan Oil Refinery, Iran's oldest crude processing facility in the southern oil-rich Khuzestan Province, the Chinese oil and gas group announced. According to Iranian officials, the venture will be financed by China Export and Credit Insurance Corporation, or Sinosure. The funding is reportedly part of a deal worth $3 billion to overhaul and expand the facility. Sinosure is China's major state-owned export credit insurance company. Its financing since its establishment in 2001 has totaled $290 billion for exports and investments. Commissioned in 1912, Abadan refinery is the longest-running Iranian crude refinery and once the largest oil refinery in the world.

https://financialtribune.com/articles/energy/78896/sinopec-signs-1b-abadan-refin...


Kuwait Seals US$6.245bn ECA-Backed Corporate Transaction

(Bonds & Loans, London, 5 December 2017) Kuwait National Petroleum Company’s (KNPC) US$6.245bn ECA-backed loan was a triumph for the company’s Clean Fuel Project and the region’s credit markets, setting a new record for the largest ECA-backed corporate loan to date. The Project involves modernisation of the Mina Al Ahmadi and Mina Abdullah oil refineries of KNPC located in Al Ahmadi Governorate, south of the country, to make their products meet stringent environmental requirements. Total debt financing for the Project is estimated to be around US$10bn. The financing package is supported by 7 ECAs: Atradius Dutch State Business N.V., Export-Import Bank of Korea (KEXIM), the Japan Bank for International Cooperation (JBIC), Korea Trade Insurance Corporation (K-Sure), Nippon Export and Investment Insurance, SACE, and UK Export Finance. JBIC and KEXIM extended direct financing to KNPC while the other agencies provided cover to commercial bank lenders involved in the transaction.

http://www.bondsloans.com/news/article/1471/case-study-knpc-seals-usd6245bn-loan...


What's New November 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.

  • Brussels Seminar December 4: Transparency and due diligence at Europe’s ECAs
  • OECD, It’s Time for Export Credit Agencies to Stop Funding Fossil Fuels
  • Too Coal-Hearted: Japan and Korea’s Support for Dirty Energy
  • Japanese Groups Strongly Object to JBIC Premature Loan Disbursement, Ingoring Upcoming Community Lawsuit
  • Japanese banks & JIBC back coal links between Japan & Africa
  • May Vies With Trump for Aramco Listing with ECA support
  • Airbus braces for a difficult landing after corruption allegations
  • Great Barrier Reef Pitted Against Coal Jobs in Australia Vote
  • ECAs are stepping up their SME support initiatives.

Brussels Seminar December 4: Transparency and due diligence at Europe’s ECAs

(CEE Bankwatch Network, Prague, 22 November 2017) In 2015-2017 Finance & Trade Watch and CEE Bankwatch Network together with its national partners researched export credit agencies (ECAs) in seven countries of the European Union (Austria, Czech Republic, Croatia, Hungary, Poland, Romania and Slovakia). The results of this research will be presented at a seminar in Brussels on December 4, 2017 at the Leopold Hotel  19:00 - 20:30 followed by a reception.

  • Opening remarks by Heidi Hautala, vice President of the European Parliament
  • Remarks on the position of European Parliament by Anna Záborská, Member of the EP Development Committee
  • Reflections on the issues of EU Member states ECAs by Silvia Gavorníková, EXIMBANKA Slovakia
  • Introduction of the research project by Thomas Wenidoppler, Finance and Trade Watch
  • Issues and Recommendations related to Transparency and Due Diligence of ECAs by Dana Mareková, CEE Bankwatch Network

To participate, register here




OECD, It’s Time for Export Credit Agencies to Stop Funding Fossil Fuels

(Friends of the Earth US, Washington, 14 November 2017) Precisely as the world’s attention is focused on addressing climate devastation at the 23rd United Nations Climate Conference (COP23) in Bonn, Germany, the largest public drivers of fossil fuel financing are meeting a mere 320 miles away in Paris. The irony couldn’t be starker. Representatives of the very same countries singing their own praises in Bonn are fomenting climate disaster from Paris, at a meeting of export credit agencies (ECAs) at the Organization of Cooperation and Development (OECD) Export Credit Group. Export credit agencies (ECAs) — which are bodies funded by taxpayers to support business overseas — are world leaders in public support for climate destruction. While relatively obscure but powerful institutions, ECAs provide government-backed loans, guarantees, insurance, and credits to projects overseas — including many energy projects — in the hopes of boosting their home countries’ exports and creating and maintaining jobs. According to a recent report by Friends of the Earth U.S. and Oil Change International, ECAs fund almost $40 billion worth of fossil fuel projects each year. That is a whopping 12 times more than what they spend on clean energy projects.

https://medium.com/@foe_us/oecd-its-time-for-export-credit-agencies-to-stop-fund...


Too Coal-Hearted: Japan and Korea’s Support for Dirty Energy

(Natural Resources Defense Council, New York, 13 November 2017) Two years ago, OECD countries agreed to place limits on coal finance. Are countries following through on their commitments? The results are mixed. Most governments have stopped financing coal and shifted finance to clean energy projects. The worst actors, Japan and Korea, are continuing to provide billions for coal projects. Continued government financing for international coal projects undermines the Paris Agreement and the prospects of a low-carbon future. To address climate change, governments must shift international public finance toward smarter, sustainable options such as solar and wind power.

https://www.nrdc.org/experts/han-chen/too-coal-hearted-japan-and-koreas-support-...


Japanese Groups Strongly Object to JBIC Premature Loan Disbursement, Ingoring Upcoming Community Lawsuit

(FOE Japan, Tokyo, 14 November 2017) On November 14, The Japan Bank for International Cooperation (JBIC) disbursed the first installment of a loan for the 1000 MW Cirebon coal-fired power plant expansion plan which Marubeni and JERA invested in, known as Cirebon 2. The total loan amount JBIC has signed in the loan agreement is around USD 731 million. However, the validity of the new environment permit, which has only recently been issued, is still in question. The local community and NGO groups, which are opposing the project, are preparing to file an administrative lawsuit next week, demanding the revocation of the new environment permit. This would make it impossible for the Cirebon 2 project to violate the laws of the host country (Indonesia) and the “JBIC Guidelines for Confirmation of Environmental and Social Considerations”. This disrepectful JBIC neglect of the lawsuit by local residents is a repeat of its conclusion of the loan agreement without an adequate EIA. JBIC had a meeting with the local community and NGO groups in Indonesia last October and directly heard their concerns and the judicial risks. Nevertheless, JBIC decided to disburse the loan and just push through with the project ignoring their concerns.

http://www.foejapan.org/en/aid/171114.html


Japanese banks & JIBC back coal links between Japan & Africa

(Global Capital, London, 1 November 2017) Japan Bank for International Cooperation (JBIC) and a syndicate of lenders have provided a $2.73bn loan to finance the construction of a railway and upgrade a port in Mozambique, which will ensure the long term supply of coal to Japan from the African country. JBIC provided $1.03bn of the deal with the rest provided by African Development Bank, Sumitomo Mitsui Banking Corporation (SMBC), Mizuho, Standard Chartered, Nippon Life Insurance Co, MUFG and Sumitomo Mitsui Trust Bank.

http://www.globalcapital.com/article/b15v74t296bqjc/japanese-banks-back-coal-lin...


May Vies With Trump for Aramco Listing with ECA support

(Bloomberg, London, 29 November 2017) U.K. Prime Minister Theresa May said London is “extremely well-placed’’ to win a planned stock exchange listing by Saudi Arabia Oil Co., as she competes against U.S. President Donald Trump for the coveted initial share sale by the world’s largest crude producer. Aramco, worth trillions, is mulling an international sale in addition to a listing on the Saudi exchange. Trump earlier this month tweeted his hope that the Saudis would use a U.S. exchange, before lobbying Saudi King Salman personally on a phone call. The UK government earlier this month agreed to a $2 billion loan guarantee, an unusually large export credit guarantee that’s designed to finance the purchase of British goods, but that also opened May up to the suggestion she was trying to influence the listing decision.

https://www.bloomberg.com/news/articles/2017-11-29/may-vies-with-trump-for-aramc...


Airbus braces for a difficult landing after corruption allegations

(Guardian, London, 5 November 2017) A UK Serious Fraud Office probe into allegedly misleading statements made by Airbus to UK Export Finance, the government department that provides commercial support for major deals has ballooned with further allegations of corruption. The investigation concerns whether Airbus lied to the government about its use of intermediaries. It is understood that Airbus has not received any further support from UKEF since it was informed of the allegations in April last year. Der Spiegel has published a lengthy investigative piece alleging that Europe’s largest aerospace multinational had operated a London slush fund, distributing millions of dollars to accounts held by companies in tax havens. Before the month was out, the firm would reveal to investors that it had reported itself to authorities in the US, this time over potentially breaching regulations on the use of agents to sell sensitive weapons technology.

https://www.theguardian.com/business/2017/nov/04/airbus-year-corporate-confessio...


Great Barrier Reef Pitted Against Coal Jobs in Australia Vote

(ABC, Sydney, 22 November 2017) As the world grapples with the fossil fuel’s role in the future energy mix, Indian bilionaire Guatam Adani's proposed Carmichael coal mine became a defining issue in Australia's Queensland election. An unnamed Adani Mining director was quoted as saying the company is close to securing a deal with Chinese enterprises and export credit agencies to fund both the mine and the rail link, and that Adani wouldn’t need a loan of up to $1 billion from the federal Northern Australian Infrastructure Facility (NAIF) for the rail line. A formal announcement about the financing deal is said to be imminent, but the ABC reports that reliance on funds from Chinese enterprises and export credit agencies could cost Australia jobs associated with the project. Such Chinese interests invariably require that materials for key infrastructure are sourced from China and that effective shifts work out of Australia. Coal and the impact of climate change on Australia's Great Barrier Reef were an issue in the election.

https://www.bloomberg.com/news/articles/2017-11-21/great-barrier-reef-pitched-ag...


ECAs are stepping up their SME support initiatives.

(TXF News, London 23 November 2017) Application processes and ease of access to export cover is improving. But as commercial banks retreat from the SME loans market, more ECA direct lending to SME exporters is a must. Many export credit agencies (ECAs) have been, or are in the process of, stepping up their support for small and medium sized enterprises (SMEs). Finnvera, Credendo, Atradius, Sace, EFIC and Euler Hermes already have streamlined services specifically targeted at SME customers. UKEF has entered into partnerships with five commercial banks – Santander, Barclays, Lloyds, Natwest/RBS, and HSBC – to allow customers to access export finance from commercial bank branches. And Bpifrance hopes to create a one-stop-shop for exporters to increase accessibility. But for all the initiatives, meeting the very different needs of the majority of SMEs remains elusive. For example, UKEF has introduced capacity to provide funding in 40 local currencies. In short – the needs spectrum of SMEs is so broad that ECAs are in the difficult position of trying to 'please all of the people all of the time'.

https://www.txfnews.com//News/Article/6308/tmp


What's New October 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 countries need to stop using export credit agencies to finance fossil fuel projects
  • French ECA BPI joins other ECAs in support of controversial Yamal LNG arctic project
  • Geneva negotiations continue for an international business & human rights treaty, including ECAs
  • Opinion: If the UK wants to increase the provision of aid to the private sector, we must play it straight
  • UK government increases support for SME trade
  • NEXI and UKEF complete One-Stop-Shop reinsurance agreement
  • Canada's GoviEx Uranium gets ECA financing interest in Niger's Madaouela project
  • Armenia to receive $100-million military export credit loan from Russia
  • Sace backs Mexican gas pipeline project
  • No, China is not about to become the world’s largest aid donor
  • Blockchain: Implications for Trade Transparency

G20 countries need to stop using export credit agencies to finance fossil fuel projects

(FOE US, Washington, 16 October 2017) Although at least seven major countries — including Canada, France, and Germany — have made commitments to phase out coal power domestically, their export credit agencies, or ECAs, have poured money into coal plants and other fossil fuel projects in other countries. According to a new report by Friends of the Earth U.S. and Oil Change International, ECAs annually fund $32 billion worth of projects in the oil and gas sector alone. That is 11 times more than what ECAs provide to clean energy projects. The OECD Export Credit Group has implemented restrictions on financing of some coal plants but unfortunately, these restrictions are not enough to stem the destructive financing of ECAs. Key findings of the report include: From 2013 to 2015, G20 ECAs provided 12 times as much support to fossil fuels as clean energy; ECAs provided over $32 billion annually to support oil and gas projects; Japan is the worst offender, providing over $13 billion annually to fossil fuels, followed by Korea and the United States supporting almost $8 and almost $6 billion annually, respectively. An end to ECA’s support of fossil fuels would probably stop many dangerous projects from going forward. One is a coal plant in Vietnam — Long Phu 1 — that would produce at least 6.3 million tonnes of carbon dioxide each year. Another project is the development of liquefied natural gas in northern Mozambique, which has already destroyed the land of local communities and endangers unique ecosystems such as mangroves and coral reefs. The president of the World Bank recently noted that plans to build more coal-fired power plants in Asia would be a “disaster for the planet” and overwhelm the deal forged at Paris to fight climate change. The report recommends that all ECAs disclose the amount and nature of all fossil fuel-related transactions, as well as information on their decision making process, and formulate policies to phase out all support for fossil fuels. The report follows an NGO coalition's July 2017 report showing G20 nations provide four times more public financing to fossil fuels than to renewable energy.

https://foe.org/g20-countries-need-stop-using-export-credit-agencies-finance-fos...


French ECA BPI joins other ECAs in support of controversial Yamal LNG arctic project

(ECA Watch, Ottawa, 30 October 2017) French ECA BPI has announced a €350 million guarantee contract with TechnipFMC for the development of the controversial $27 billion Yamal LNG project in Russia's far north. German Japanese, Swedish, Italian and Chinese ECAs have also supported the project. Experts from the Rivers Without Borders Coalition, after studying the Environmental and social impact assessment (ESIA), which was conducted in accordance with Russian law, concluded that the current ESIA does not provide sufficient information, analysis or a comprehensive management plan for addressing the project’s significant impacts on biodiversity, fishing, indigenous peoples, and accidents, a conclusion also reached by WWW Russia in 2015. It is interesting to note that Arnaud Caudoux, Deputy Chief Executive Officer of Bpifrance, is also a member of the Board of TechnipFMC. TechnipFMC hs also requested BPI support for its participation in the $7 billion Coral LNG project in Mozambique.

http://www.bpifrance.fr/content/download/66864/724637/version/1/file/Contrats%20...


Geneva negotiations continue for an international business & human rights treaty, including ECAs

(Lexology, London, 24 October 2017) An intergovernmental working group mandated to draft a new international legal instrument to regulate the activities of transnational corporations in relation to human rights is holding its third meeting in Geneva this week. Negotiations for a business and human rights treaty have been ongoing since 2014 when the Human Rights Council established an open-ended mandate (discussed in further detail here) to revoke business licences and subsidies, if and to the extent necessary, from offenders; and revise relevant tax codes, public procurement contracts, export credit and other forms of State support, privileges and advantages in case of human rights violations,

https://lexology.com/library/detail.aspx?g=d9ee7159-aad5-4a26-a6e6-b71ffac344ce


Opinion: If the UK wants to increase the provision of aid to the private sector, we must play it straight

(Devex, Washington, 27 October 2017) This summer, the British Conservative Party, through their manifesto and the pages of the Daily Mail, issued the OECD DAC — a multilateral group of donors that sets the definition of aid — an ultimatum: allow us to widen the definition [of aid] to include more private equity, more military spending, and more domestic spending, [and more ECA support?] or Britain will pull out. Pulling out of the OECD DAC would mark a dangerous precedent. Can any donor country chalk up anything it wants as aid? Export credit? How about concessional arms sales? And what would pulling out of this multilateral group do for the international norms and standards for the delivery of aid that Britain has helped shape over decades?

https://www.devex.com/news/opinion-if-the-uk-wants-to-increase-the-provision-of-...


UK government increases support for SME trade

(Specialist Banking, London, 29 October 2017) UK Export Finance (UKEF) – the UK’s export credit agency – has launched a new partnership with five major high street banks,  Barclays, HSBC, Lloyds, RBS/NatWest & Santander, enabling smaller businesses to access millions of pounds in government-backed trade finance directly from their banks in seconds. Companies which supply exporters can now access UKEF-backed finance for the first time, helping them become part of major export contracts. [It is not clear how or if the OECD Common Approaches will apply to this support.]

http://specialistbanking.co.uk/government-increases-support-sme-trade/


NEXI and UKEF complete One-Stop-Shop reinsurance agreement

(Reinsurance News, Brighton, 5 October 2017) The agreement supports a framework for reinsurance underwriting between NEXI and UKEF, and enables cooperation between the pair in relation to the export of Japanese products via a reinsurance transaction that also involves UK exporters. "When a Japanese company joins a project in a third country in conjunction with a foreign company, One-Stop-Shop Reinsurance agreements make it possible for NEXl to undertake the risk portion of exports made from Japan,” explains the announcement. Adding; “Suppose a Japanese company exports to a third country with a foreign company under a consortium, and the foreign company obtains insurance from its own ECA for the entire contract amount including the portion exported by Japanese company; NEXl will provide reinsurance to the foreign ECA for the portion exported from Japan.”

https://www.reinsurancene.ws/nexi-ukef-complete-one-stop-shop-reinsurance-agreem...


Canada's GoviEx Uranium gets ECA financing interest in Niger's Madaouela project

(Mining Technology, London, 3 October 2017) GoviEx Uranium has received expressions of interest from export credit agencies and project finance banks to arrange $220m of senior debt financing for the construction of the Madaouela uranium project in Niger. Conditions for the debt financing include long-term off-take contracts to be signed with nuclear utility counterparties, as well as export credit agency insurance cover being in-place, depending on the nationality of either the off-take and/or procurement counterparties. [Niger exports enough uranium to France to generate 50 per cent of the latter’s electricity supply, but ordinary Nigeriens reap little benefit from France’s control of their country’s uranium resources, with over three-fifths of the population living below the poverty line and reports of radioactive contamination of water, air and soil by multinational mining operations. Recent US press reports ask if  US troops died in Niger protecting French and Chinese uranium?]

http://www.mining-technology.com/news/newsgoviex-uranium-receives-proposals-for-...


Armenia to receive $100-million military export credit loan from Russia

(ARKA, Yerevan, 12 October 2017) At its regular Thursday meeting, the Armenian government okayed a proposal to sign a $100-million loan agreement with Russia to purchase defense armaments. In accordance with the agreement, Russia will provide an export credit loan to Armenia for financing supplies of Russia-made ammunition for Armenia’s army. The loan will be extended for 15 years (from 2023 to 2037) at a 3% annual interest rate, and Armenia has to use these financial resources at a period between 2018 and 2022. In June 2015, Armenia signed a $200-million an export credit loan agreement with Russia for acquiring Russia-made military industry products. The loan was provided for 13 years with a three-year grace period at a 3% annual interest rate. Under this agreement, Armenia buys from Russia Smerch multiple rocket launchers, Igla surface-to-air missile, TOS-1 A multiple rocket launchers, Tigr armored vehicles and 9М113М wire-guided anti-tank missiles as well as sniper riffles, engineering and communications devices.

http://arka.am/en/news/politics/yerevan_to_receive_100_million_military_loan_fro...


Sace backs Mexican gas pipeline project

(Global Trade Review, London, 11 October 2017) Italian engineering, procurement and construction (EPC) contractor Sicilsaldo has secured an €80mn contract for a gas pipeline project in Mexico, with the backing of Italian export credit agency Sace. “Sace has backed 80% of the €80mn”, a spokesperson for Sace tells GTR. The contract is part of a 560km gas pipeline project that will cross the states of Chihuahua and Sonora. Price tagged at US$560mn, the pipe will have capacity of over 550 million cubic feet.

https://www.gtreview.com/news/europe/sace-backs-mexican-pipe-project/


No, China is not about to become the world’s largest aid donor

(Quartz Media, New York, 11 October 2017) US president Donald Trump’s plans to slash the American government’s overseas spending has led to a rash of speculation that China could emerge as a new “global leader” on everything from free trade to the world’s fight to combat climate change, including reports that suggest China could become the world’s most generous country as well. The suggestion however is based on a study (pdf) which does not suggest China is in “pole position” to be the world’s biggest aid donor. It breaks down China’s overseas finance by destination and type from 2000 to 2014, and shows that Beijing is sending much more money abroad, but most of that money can’t be described as aid. China contributed over $350 billion in “official finance” to 140 countries and territories over that time, the study says. But much of that official finance wasn’t “official development assistance,” or aid, as defined by the OECD, which is finance specifically for local economic development or to improve welfare in the recipient country; it can’t profit the donor country; and at least 25% of the amount must be provided to the recipient as a grant. Beijing’s loans often come with some very serious strings attached. Often, the money must be used by the recipient country to buy materials or contracts from China’s state-owned companies, which would boost production and profits at home. In other words, the loans are more like a company extending export credit to an overseas customer who buys its goods

https://qz.com/1099819/us-foreign-aid-in-the-time-of-trump-china-still-is-not-ab...


Blockchain: Implications for Trade Transparency

(Banking Technology, London, 19 October 2017) Amid the hype around distributed ledger technology and blockchain it can seem they are technologies looking for solutions. Trade finance is a complex, paper-based activity. It encompasses lending, issuing letters of credit, factoring, export credit and insurance. Companies involved with a trade finance transaction include importers and exporters, banks and financiers, insurers and export credit agencies, and other service providers, such as customs organisations. Documentation is an important aspect of trade finance, but it isn’t standardised and invoices, letters of credit and bills of lading can differ greatly from country to country. Japanese bank Mizuho recently completed a trade finance transaction between Australia and Japan, digitising all necessary documentation and sharing the data with multiple participants across a distributed ledger. A consortium of seven European banks have formed the Digital Trade Chain (DTC) initiative, a blockchain-based digital platform for managing and tracking domestic and cross-border open account trade transactions. The members of the consortium are KBC, Unicredit, HSBC, Rabobank, Societe Generale, Deutsche Bank and Natixis. The distributed nature of the data could significantly reduce cycle times – for example, by making data simultaneously available to all parties in a transaction, each could perform their respective checks in parallel, reaping immediate benefits over today’s slower, linear approach. [There should be concerns however that this is a brand-new technology that is not defined by regulators, raising concerns about transparency if access to trade data is limited only to corporate interests, which may wish to protect the economic, social and environmental impacts of their trade activities from public scrutiny.]

http://www.bankingtech.com/1021802/blockchain-a-world-of-possibilities/


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.

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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/


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