(MENAFN, Amman, 30 December 2020) Etihad Credit Insurance (ECI), the UAE Federal export credit company, has partnered with ECGC Limited (ECGC), the premier export credit agency of India, to explore and bolster the trade and economic cooperation between the UAE and India. India’s ministry of external affairs in February 2020 reported that current trade between the two nations is valued at around $60 billion, making the UAE India’s third-largest trading partner and second-largest export destination in 2018 to 2019.
India
G12 ECA Group Issues First-Ever Joint Statement
(Global Trading Magazine, Dallas, 25 September 2020) At the Sept. 9 end of the two-day 2020 G12 Heads of Export Credit Agencies (ECAs) meeting, which EXIM Bank hosted virtually from its Washington, D.C. headquarters, the 12 Heads of ECAs issued its first-ever G12 joint statement. ECAs involved included: EXIM USA (Host), Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the Republic of Korea and the United Kingdom. The 2020 G12 Heads of Export Credit Agencies (ECA) Meeting was a productive and open exchange that highlighted efforts aimed at stabilizing the availability of working capital and export credit in a volatile international market environment. The transparent discussion brought forth the important work each ECA is undertaking to mitigate the economic impacts of the COVID-19 pandemic. The ECA leaders reiterated their steadfast commitment to supporting their global supply chains—domestically and internationally—as well as promoting exports, job security, and financial investment, all of which underpin prosperity at home and abroad. In the wake of the COVID-19 pandemic, this is an important time for Export Credit Agency leaders from around the world to find common ground on key initiatives, especially those that foster greater transparency,
India Seeks to Win Investment Amid Ongoing China-US Trade War, Coronavirus Outbreak
(Sputnik, Moscow/New Delhi 3 March 2020) The US and China are still engaged in a trade dispute, and the spread of the coronavirus makes a deal less likely, at least in the short-term. The Indian Finance Ministry has revealed that amid the US-China trade war, its exports to the two countries have not only increased but it is also looking forward to enlarging its China Plus-One Strategy. Claiming that trade tensions between China and the US contributed to the decline of world output and trade, the ministry said that India recorded $44.8 million in exports to the USA and $14.6 million to China in 2019. The US-China trade war began in 2018 after US President Donald Trump accused China of unfair trade practices and imposed tariffs on more than $360 billion of imports. China accused the US of trying to stop it from emerging as a global power and retaliated with tariffs of $110 billion on US products. Amid the tensions, the Indian government has granted relief measures to exporters including lower duties and taxes on exported products, a special scheme for higher export credit disbursement and a fast clearance window to boost trade. India has recorded an increase in exports with the US despite higher tariffs and the end to the Generalised System of Preferences, an import subsidy facility, which assisted Indian exports to the tune of $5.6 billion.
India asks DGFT to check fake export credit refund claims
(New Kerala, New Delhi, 5 January 2020) After unearthing firms that made fake export credit claims, India’s Department of Revenue has asked the Directorate General of Foreign Trade (DGFT) to seek regular compliance and verification reports from regulators. India refunds Integrated Goods and Services Tax paid by “star exporters” (exports of more than $3 million per year) as a form of export subsidy. Ongoing investigations have thrown up at least 9 star export houses as ‘non-traceable’ at their premises declared on record. All these star export houses have availed IGST refunds, which are now being questioned by tax officers. There are instances where an exporter with over Rs 50 crore of exports of readymade garments has taken refund of Rs 3.90 crore while the entity’s total GST payment in cash was a mere Rs 1,650. The Revenue Department has identified several star-rated export houses that are bogus or shell export houses claiming fake refunds. Alarmed at the misuse of IGST refunds, the CBIC has requested to DGFT to install a more robust accreditation process. Meanwhile, India’s Commerce and Industry Minister recently announced that the scheme for providing export credit at low interest rates announced in September last year are being firmed up and would be implemented soon.
AfDB approves $400m loan for Mozambique LNG facility
(Hydrocarbons Technology, London, 27 November 2019) The African Development Bank (AfDB) has approved a $400m loan to support construction of the integrated liquefied natural gas (LNG) plant and liquefaction facility in Mozambique. The Mozambique LNG Area 1 Project is led by the French corporation Total. Other partners in the project are Mitsui, Oil India, ONGC Videsh, Bharat Petroleum, PTT Exploration, and Mozambique’s national oil and gas company ENH. NGOs have provided overwhelming evidence that Mozambique’s LNG projects will emit at least 5.2 million tons of carbon dioxide per year, causing climate chaos,
India, Russia identify new prospects for ECA led cooperation
(Elets Technomedia, Noida Uttar Pradesh, 4 September 2019) With bilateral trade between India and Russia showing a robust growth, growing by 17% to $ 11 billion in 2018 alone, Russian Export Centre (REC) is focusing on providing a wide range of financial and non-financial support in order to realize the full potential of the bilateral trade between the two countries by improving export conditions and leveling existing trade barriers. Russian Agency for Export Credit and Investment Insurance (EXIAR JSC) and ROSEXIMBANK JSC, are the shareholders in REC.
How Gujarat fishermen won US top court ruling against global funding
(Indian Express, Ahmedabad, 10 April 2019) On February 27, the US Supreme Court ruled in favour of a group of fishermen and a Gujarat village panchayat in a suit against the US-headquartered International Finance Corporation (IFC). The case, which now goes back to a US district court, relates to alleged pollution caused by a Gujarat-based power plant partly funded by IFC and Korean ECA KEXIM. Of the estimated project cost of $4.14 billion, $450 million was funded in 2008 by IFC, the Asian Development Bank advanced $450 million as loan, the Export Credit Agency of Korea extended another $800 million as loan, and CGPL raised around Rs 1.5 billion from Indian banks through debt. According to National Fish Worker’s Forum, a nationwide federation of fishermen organisations, the plant operates a cooling technology that requires much more water than the system it got clearance for. The water is eventually discharged into the sea, and the complainants have alleged that it has affected marine life. Budha Jam, leader of the fishermen community of Tragadi-Nal, says: “With marine life near the coast affected, we are forced to sail farther in search of fish. They also dredged the coast and seafloor for their outfall channel and deposited sand near a well, which was a source of drinking water. Water in the well has turned saline since.” Complainants add that coal dust and fly-ash from the plant are damaging date palms and chikoo trees in Navinal. [One wonders how KEXIM’s adherence to the OECD’s Common Approaches could have allowed this.]
German parliament approves ECA supported sale of 6 heavy frigates to Egypt
(Middle East Monitor, London , 5 April 2019) The German Parliament Budget Committee has approved export credit guarantees to secure the sale of six heavy frigates worth €2.3 billion (US$2 billion) to Egypt from ThyssenKrupp Marine Systems. The ships can be supplied with weapons including guided missiles and torpedoes. Green Party Budget expert, Tobias Lindner, criticised the deal and highlighted Egypt’s human rights record. “The government’s arms export policy is becoming increasingly contradictory,” Lindner told Bild, adding that “people have been fighting for weeks against weapons deliveries to Saudi Arabia, while at the same time wanting to deliver frigates to the military dictatorship in Egypt.”
India’s Jet Airways delays payments to global lenders guaranteed by ExIm
(Money Control, Mumbai, 8 April 2019) India’s’ cash-strapped Jet Airways has delayed repayments to global lenders, including Citibank, that funded the purchase of its Boeing 777 planes the Economic Times reported. The repayments, worth over $18 billion, were due at the end of March. The banks loaned funds to the carrier based on guarantees from the Export-Import (EXIM) Bank of the US, which can be invoked in case of a default. If a default occurs, it would be bad news for Jet as the US ECA would deregister and take back the planes. Almost two-thirds of Jet’s fleet have been grounded due to non-payment of its dues.
Jaguar Land Rover seeking ECA funding after huge write-down
(Car Advice, Sydney, 11 February 2019) Jaguar Land Rover is seeking US$1 billion in funding after a disastrous fourth quarter of 2018, huge-write downs on the value of its investments, and continued sales struggles in China. According to a report from Automotive News Europe, the Indian-owned carmaker needs to raise US$1 billion ($1.4 billion) within the next 14 months to replace “maturing bonds” and fund the brand’s expensive electric vehicle development program. Rather than borrowing from the bond market, the company is looking at bank financing, leasing its assets or tapping into export credit. Tata Motors announcing sales in China were down 35% in the final 3 quarters of 2018.
