(Halifax Initiative, Ottawa, December 2012) A complex range of public and private institutions provide financing for both corporate and state activity that is associated with human rights abuses. These financial institutions present an opportunity for the widespread dissemination and implementation of the UN Framework on Business and Human Rights. Many of these institutions require borrowers to comply with social and environmental requirements as a condition of financing, but none currently has policies in place to ensure respect for the human rights of those people who are affected by the activities that they finance.
ECAWatch Newsletter 12
Consultation between OECD Export Credit Committees & CSOs
(OECD, Paris, 13 November 2012) The OECD’s Working Party on Export Credits and Credit Guarantees (ECG) and the Participants to the Arrangement on Officially Supported Export Credits held a 1/2 day consultation with CSOs on 13 November. The purpose was two-fold: 1st, to update CSOs on recent developments, such as agreement to a new Sector Understanding on Export Credits for Renewable Energies, Climate Change Mitigation and Water Projects (CCSU) and to a revised Recommendation of the Council on the Common Approaches; and, 2nd, to exchange views on issues of interest to CSOs. CSOs represented were: Amnesty International, the Business and Industry Advisory Committee to the OECD, the Coalition for Employment through Exports Inc. of the United States, the Danish Institute of Human Rights, ECA Watch, the Equator Principles Financial Institutions, the European Banking Federation and the Trade Union Advisory Committee to the OECD.
India’s Government Auditor criticizes ECA ECGC for inadequate controls
(Business Standard, New Delhi, 5 December 2012) Government auditor CAG today pulled up Export Credit Guarantee Corporation for not having proper arrangements with banks to finance exporters resulting in a loss of about Rs 310 crore (US$56.6 million) during the period between 2008-09 and 2010-11. Export Credit Guarantee Corporation of India Ltd (ECGC), which comes under the administrative control of the Commerce Ministry, provides export credit insurance cover to exporters and banks.
US business worries Eximbank may hit credit ceiling
(Reuters, Washington, 2 December 2011) The U.S. Export-Import Bank, which helps big exporters such as Boeing and Caterpillar make foreign sales, might have to stop operations unless Congress raises its $100 billion “exposure cap,” said U.S. government and business officials.
Santos Obtains $1.2 Billion in Debt Financing to Help Fund LNG Projects
(Bloomberg, Sydney, 22 December 2011) Santos Ltd., the Australian energy company building the $16 billion Gladstone liquefied natural gas project in Queensland state, obtained $1.2 billion in debt facilities backed by three government export credit agencies. Export credit agencies from Australia, Canada and Italy helped obtain the loans.
Nigeria’s NEXIM Bank Disburses N70bn, $322m
(This Day, Kano, 13 December 2011) Nigerian Export Import Bank (NEXIM Bank) has disclosed that the bank has disbursed a total of about N70 billion (US$431 million) and US$322 Million in supporting over 900 export projects.
CEDHA outlines violations of Equator Principles of mining project under ECA consideration (PDF)
(CEDHA, Buenos Aires, 25 November 2011) Barrick Gold’s mining operations in Argentina and Chile, particularly at the Pascua Lama gold project (set to commence in the near future), but also at the adjacent and related Veladero project which has been in operation for several years, fail to comply with the social and environmental norms of the Equator Principles. Export Development Canada (EDC) and the US Export Import Bank (Exim Bank) are considering providing financing to Barrick Gold for the Pascua Lama project.
The Brookings Institution – Population Displacement and Export Credit
(Brookings Institute, Washington, 6 December 2011) Internally displaced persons (IDPs) are increasingly a product not only of conflicts and natural disasters, but also of a growing number of private or public sector infrastructure projects building mines, plants, dams, roads, etc. with finance made available to private construction companies and banks through, inter alia, the Export Credit Agencies (ECAs) of the 34 OECD countries.
Boeing sees no aircraft financing gap in 2012
(Forex News, 6 December 2011) Boeing forcasts airlines will avert a shortfall in aircraft financing next year by relying increasingly on capital markets and alternative sources as pressure grows on European banks… Export credit agencies such as the Export-Import Bank in the United States should see their share remain static at 30 percent… Boeing had proposed that export credit agencies such as ExIm should, for a fee, cover bondholders for the political risk that a country would fail to apply the Cape Town Convention, leaving them with the commercial credit and asset risk.
Berne Union voices concerns about world trade
(CreditMan, London, 5 December 2011) “Despite the co-ordinated Central Banks’ actions over the last months we need quick and powerful solutions this week”, says Johan Schrijver, President of the Berne Union. This is the world association of export credit insurance companies, insuring annually $ 1.5 trillion, or roughly 10% of world cross-border trade.
