(The Australian, Perth, 28 October 2011) Commonwealth nations are pushing for the bloc to establish a system of export and credit guarantees designed to promote trade and growth for the poorer countries in the 54-member organisation. Commonwealth Secretary-General Kamalesh Sharma said ahead of the meeting: "Because of the global financial crisis, there is a lot of conservatism preventing smaller countries accessing finance. "There is a requirement for export credit and over-the-counter trade finance."
Index for September 2011
Volume 10, Issue 10
Volume 10, Issue 9
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(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 .
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(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.
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(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.
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(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."
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(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.
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(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.
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(Bloomberg, 21 September 2011) Indian companies may turn to Hong Kong’s yuan bond market to raise funds at 40% the cost of top-rated home companies after India eased borrowing rules.... Rural Electrification Corp., India’s state-controlled lender to power projects, has applied to Sinosure, for a guarantee on a $350 million loan, Chairman Hari Das Khunteta said in an interview on Sept. 16.... Rural Electrification will borrow in yuan “if the terms are good and taking into account interest rates,” Khunteta said..... China, which was the biggest contributor to world growth last year, according to the International Monetary Fund, is promoting the yuan’s use in global trade and finance.... Annual trade between the world’s most populous countries will touch $60 billion in 2011.
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(VK-NL, Amsterdam, 8 September 2011) A Dutch project involving millions of Euros in aid and ECA support to modernize the harbor of a village in Guatemala resulted in failure. Champerico, a village at the Pacific coast, now has a silted harbor from which no boat can enter or leave. [Original article in Dutch - ECA Watch translation]
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(Both Ends, Amsterdam, 13 September 2011) With an overwhelming majority - 643 votes in favour, 20 against and 9 abstentions - a new law, which forces European export credit agencies (ECAs) to be more transparent about the environmental and social effects of transactions supported by ECAs, has just been approved of in the European Parliament. As of next year, all ECAs will have to deliver a report about this to the European Commission and the European Parliament on a yearly basis. European green MEPs noted that "EU Member States will have to report on how ECAs perform according to EU global goals and commitments regarding the promotion of democracy and human rights, and the fight against climate change, on how they include environmental risks in their interest calculation (environmentally unsound investment projects might be charged with higher interest rates, in order to cover their real risks).