Index for March 2013

Volume 12, Issue 3

  • GAO-13-303, Mar 28, 2013

    From fiscal year 2008 to fiscal year 2012, the U.S. Export-Import Bank's (Ex-Im) outstanding financial commitments (exposure) grew from about $59 billion to about $107 billion, largely in long-term loans and guarantees. Factors associated with this growth include reduced private-sector financing following the financial crisis and Ex-Im's authorization of direct loans--a product not offered by export credit agencies in some other countries--to fill the gap in private-sector lending... Ex-Im's processes for determining credit subsidy costs, loss reserves and allowances, and fees account for multiple risks... . Opportunities exist to further improve the model.

    Download the full 66 page report here

  • (Save the Tigris, 22 March 2013) Press Release by Campaign to Save the Tigris River and the Iraqi Marshes. On the occasion of Austria's Andritz AG Annual General Meeting which is being held on World Water Day, the Save the Tigris campaign, a coalition of nongovernmental organizations from Iraq, Iran & Turkey, sent a letter to Andritz’s CEO, Wolfgang Leitner, regarding Andritz' involvement in the construction of the Ilisu Dam in Turkey; a controversial project which has failed to comply with basic international law. The open letter was signed by 4447 Iraqis and received support from other dam affected communities from Chile, Indonesia, Spain, Turkey, and support from the international community in Italy, UK, the US who endorsed Iraqi demands to stop supplying equipment for the dam construction until compliance with international law and treaties is assured.The Export Credit Agencies of Germany, Austria and Switzerland have suspended credit guarantees due to Turkish failure to comply with required environmental, social and cultural heritage conditions.

  • (ThinkAfricaPress, London, 1 March 2013) Africa's corruption troubles are well known, but corruption is a global phenomenon and developed countries are implicated through export credit agencies which support projects abroad that not only involve economic corruption, but are linked to human rights abuses and the maintenance of inequality. Furthermore, to add insult to injury, they also often generate sovereign debt in the process which then constrains governments’ capacities domestically.

  • (Chemicals-Technology News, London, 13 March 2013) Al-Karaana Petrochemical Complex is a proposed olefins and derivatives plant, which will be located at Ras Laffan Industrial City in northern Qatar. The project is being developed by a joint venture (JV) of Qatar Petroleum (BP), which holds an 80% share in the project, and Shell, holding the remaining 20% share. The BP-Shell JV is expected to invest $6.4bn for the construction of the petrochemicals plant. Trade Finance Magazine reports that export credit agencies will be a major source of financing for the $6.5 billion complex, according to remarks made by Qatar’s Minister of Energy and Industry. 
  • (LiveMint & WSJ, New Delhi, 20 March 2013) The Export Credit Guarantee Corporation of India Ltd. (ECGC) will open its first overseas office in London to help Indian exporters recover payments from defaulters... Since 23% of ECGC’s business is in Europe, the agency will operate from London, said N. Shankar, chairman and managing director. “It’s not a branch but a full-fledged office. It will focus on buyer underwriting, getting information on buyers in Europe and other places and helping in recovery of loans,” Shankar said.