(Pambazuka, Nairobi, 19 September 2011) From most indications, India and China, two leading emerging economies in the world, are competing with each other, as well as Africa’s traditional western trading partners, to build a stronger relationship with Africa… Of note is the reality that India cannot match China’s ‘deep pockets’ when it comes to resource diplomacy, state backing for private sector investments, and the provision of credit and aid to African countries… However, it is hard to ignore the similarities between the African strategies of India and China. In this regard, India has doubled its lines of credit (LOC)… India’s competition with China in Africa will serve as an interesting window on the way in which it affects Indian policy.

(iStockAnalyst, Jeddah, 26 September 2011) One of the important issues on the agenda of the second annual meeting of the Aman Union, the organization of investment and export credit agencies in the Arab and Islamic World to be held on Oct. 4-5 in Istanbul under the aegis of the Turk Eximbank, are the challenges facing the export credit insurance industry especially insuring risks in post-conflict countries and those undergoing economic and political transformation…. Indeed the corporation confirms that opportunities for export credit, investment insurance and retakaful business are on the rise as a result of the recent political turmoil in the region.

(7th Space, London, 27 September 2011) “Now that an internationally recognised regime has been established and stability is returning, I am pleased to announce today that ECGD will be resuming cover immediately and will make up to $250m in support available. This support will help British businesses play their role in assisting the people of Libya build the future they want and richly deserve.”…. “I very much hope that ECGD’s lead in resuming cover will have the added benefit of signalling to international private investors and banks that creditworthiness has been restored. I hope this signal of the UK’s confidence will encourage banks and other lenders to support the new regime.”

(Hindu Business Line, Kochi, 5 September 2011) Seafood exports from India are under strain as export costs continue to mount. The hike in interest rate of export credit is costing the seafood industry dearly, said Mr Anwar Hashim, President of the Seafood Exporters Association of India (SEAI). The interest rate of export credit which was 9 per cent in April 2010 is now almost 12 per cent, an increase of 30 per cent.

(EFIC, Canberra, 1 September 2011) The Minister for Trade has announced an inquiry by the Productivity Commission into Australia’s export credit arrangements.  In undertaking the inquiry, the Productivity Commission will consider arrangements for the provision of export credit through the Export Finance and Insurance Corporation (EFIC). EFIC is reviewed on a regular basis with the last review taking place in 2006. Over the course of the inquiry, the Commission will consult widely with government agencies and with private sector organisations, relevant professional and interested parties.

(7th Space, London, 8 September 2011) The Export Guarantees Advisory Council (EGAC) advises Ministers through ECGD, the UK´s export credit agency, principally on policies relating to environmental, social and human rights issues. EGAC´s new members are Alexandra Elson, Chris Fitzpatrick and Neil Holt. There are no civil society members of EGAC, only corporate representatives or lawyers, and one academic .

(Bloomberg, Paris, 22 September 2011) EADS sought to assure investors that lenders and leasing companies aren’t retreating from the aircraft financing market, as the parent of Airbus SAS tumbled the most in five weeks… EADS dropped as much as 7.5 percent in Paris trading after Les Echos reported BNP Paribas (BNP) SA and Societe Generale (GLE) have stopped lending to aircraft purchasers because of difficulties in obtaining dollar refinancing. Societe Generale, France’s 3rd bank by assets, said Sept. 12 that it may reduce its business to help finance aircraft and ships… “French banks contribute 15-20 % maximum to financing commercial aircraft, and of that portion, a significant part is backed by export credit finance, an area where U.S. banks could easily step in” to fill the breach, the managing director of DVB Bank SE (DVB), amongst the biggest aircraft financiers in Europe, said in an interview today. [While the OECD has not published sectoral data for official export credits since their 12 January 2007 release of 2005 statistics, commercial aircraft finance was then a leading official export credit sector – 29% of ECA reported long-term credits and 37% of 717 reported projects.]

(Wall Street Journal, Washington, 13 August 2010) U.S. airlines are weighing in on a multibillion-dollar fight over export subsidies for jetliners, potentially complicating international negotiations over the issue and dimming chances governments will meet a year-end deadline to set new rules. While ECDG’s support for exporters increased this year by 51%, driven mainly by export orders of Airbus aircraft, British Airways complained about their lack of access to this support. “The explosive growth of export-credit financing in recent years is distorting competition among airlines worldwide and harming U.S. airlines in particular,” said James May, of the Air Transport Association, a U.S. airline trade group. 

(Business Wire, Bethesda, 3 August 2010) Nuclear fuel enrichment centrifuge manufacturer USEC Inc. has updated its application for a US$2 billion loan guarantee from the US Dept. of Energy Loan Guarantee Program and is seeking Japanese ECA support through its relationship with Toshiba. France’s Areva is also planning to build an enrichment plant in Idaho. Meanwhile, European Union governments imposed their toughest sanctions yet on Iran, backing U.S. efforts to force Iran to halt uranium enrichment.

(AerCap Holdings, Amsterdam, 24 September 2010) AerCap Holdings announced that it has closed 2 transactions for the financing of 6 Airbus aircraft with the European Export Credit Agencies, led by the UK’s ECGD. Airfinance Journal noted that it was a deal that closed against all odds: a bank being investigated, an election in the UK and suddenly the European debt markets went haywire.