Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New September 2014

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • UK Export Finance invites partners to help deliver £3 billion of export credit loans
  • UKEF Aerospace Head Says Capital markets key to future funding for aviation markets
  • India tightens Vietnam defence with US$100 million export credit
  • India, Japan sign deal for export credit of $152 million
  • Poland slashes export insurance rates to bolster produce exports banned from Russia
  • Improvement of export credit facilities needed to drive Irish Food Harvest 2020
  • Nigeria's NEXIM Bank and the Task of Export Promotion
  • US ethanol stocks dive after Brazilian export credit announced

UKEF Aerospace Head Says Capital markets key to future funding for aviation markets

(Fresh Business Thinking, London, 23 September 2014) "Commercial finance and liquidity may be readily available at the moment, but the aviation sector also needs to consider capital markets as a source of future funding," that is the message UK Export Finance’s Head of Aerospace, Gordon Welsh, delivered yesterday (Monday) to delegates at International Society of Transport Aircraft Trading (ISTAT) Conference in Istanbul. UK Export Finance (UKEF), the UK’s export credit agency, supports UK exporters with a range of insurance, guarantees, and direct lending facilities that complement funding available from the commercial sector. The aviation industry is a very important sector to UKEF. Anticipating a debate about the relative merits of commercial debt compared to use of capital markets for the aviation sector, Mr Welsh believes that while commercial debt is currently attractive to the aviation sector, ahead of the introduction of Basel III and adoption of its leverage ratio, capital markets have the potential to offer stability in both liquidity and pricing. Welsh noted: "There is a clear role for export credit agencies in the future funding of the aviation sector. By filling the gaps in private sector finance provision we increase capacity. "With successful products already supporting the industry, we can also take a long term view, working closely with our French and German colleagues and considering innovative features such as pre-funded bonds that can be structured, or instant bonds capable of being issued on a drawdown basis. These are initiatives with the potential to help secure the future of the aviation industry."

http://www.freshbusinessthinking.com/news.php?NID=23671&Title=Capital%20markets%...


UK Export Finance invites partners to help deliver £3 billion of export credit loans

(Business Credit Management, London, 5 September 2014) UK Export Finance, the UK’s export credit agency, is inviting partners to apply to help it deliver £3 billion of export credit loans as part of its enhanced direct lending facility. The government department, which during the last five years has provided over 1,500 guarantees and insurance policies with an exposure value in excess of £14 billion, is setting up a panel of suitably qualified partner banks and/or financial organisations to help arrange and administer the direct lending facility (DLF) export credit loans. Under the DLF, UK Export Finance (UKEF) will provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters. Loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen.

http://www.creditman.biz/uk/members/news-view.asp?newsviewID=20406


India tightens Vietnam defence with US$100 million export credit

(Reuters, New Delhi, 16 September 2014) India and Vietnam have deepened military cooperation over the past decade. India extended a $100 million export credit to Vietnam for defence deals and tightened energy ties on Monday. India and Vietnam have deepened military cooperation over the past decade and under Prime Minister Narendra Modi, India is pushing ahead with a new strategy to establish itself as an arms exporter using export credits to leverage foreign sales.

http://timesofindia.indiatimes.com/india/India-tightens-Vietnam-defence-oil-ties...


India, Japan sign deal for export credit of $152 million

(Hindu Business Line, Mumbai, 1 September 2014) The State Bank of India (SBI) and Japan Bank for International Cooperation (JBIC) signed a dual-currency loan agreement of $152 million. “The loan is co-financed with the Bank of Tokyo-Mitsubishi UFJ Ltd amounting to ¥13.5 billion ($131 million) and $21 million approximately. The total co-financing amount came to $152 million,” an SBI official said. This is the third time that SBI has participated with JBIC in a project funding. The bank, in a statement, said this credit line will be utilised by Meja Urja Nigam Pvt Ltd (MUNPL) to finance the procurement of steam turbine generator equipment from Japan’s Toshiba Corporation and its subsidiary in India, Toshiba JSW Power Systems, to construct a super critical pressure coal-fired power plant (660MWx2 units) in Uttar Pradesh.

http://www.thehindubusinessline.com/industry-and-economy/banking/sbi-jbic-sign-2...


Poland slashes export insurance rates to bolster produce exports banned from Russia

(Fresh Fruit Portal, Santiago, 3 September 2014) The Polish government has lowered the export insurance rate in a bid to encourage suppliers to find new markets for produce banned from Russia, while also helping to ease the financial pressures of exporting in the wake of the blockade. Working with the Export Credit Insurance Corporation, Poland’s Ministry of Agriculture and Rural Development has announced a 20% discount on insurance to a raft of countries, including large markets such as the Middle East and China. However, the discount only applies to produce that is currently part of the Russian embargo and for Polish producers and suppliers this is mainly apples, cabbage, peppers and sprouts.

http://www.freshfruitportal.com/2014/09/03/poland-slashes-export-insurance-rates...


Improvement of export credit facilities needed to drive Irish Food Harvest 2020

(Farmers Journal, Dublin, 22 September 2014) A report published by Minister for Agriculture Simon Coveney today shows that the country is on track to meet the Food Harvest 2020 target. The target of reaching €12bn worth of agri-food exports by 2020 is still achievable. The report states that a number of issues, including access to increased credit as well as the opening of new markets need to be addressed. As the primary focus of Food Harvest 2020 is driving exports, the report says that great supports should be given to exporters. “Government should consider the specific needs of the food and beverages sector in its deliberation on short term export credit insurance scheme.”

http://www.farmersjournal.ie/improvement-of-credit-facilities-needed-to-drive-fo...


Nigeria’s NEXIM Bank and the Task of Export Promotion

(ThisDayLive, Lagos, 30 August 2014) According to the managing director of Nigeria Export-Import Bank, Mr. Roberts Orya, “The non-oil sectors are now the key drivers of the country’s GDP growth, which is expected to rise to 7.3 percent in 2014 Nigeria’s rise above South Africa and Egypt in attracting foreign direct investment boils down to her frontier opportunities in various sectors such as power, infrastructure, agriculture, solid minerals, retailing and services. The job opportunities created by these robust economic prospects have been tremendous. No doubt, a private-sector driven economy has globally shown to be the panacea for job creation. It is against this backdrop that the Nigeria Export-Import Bank has not rested on its oars in ensuring that the nation’s private sector has the maximum support to thrive. In the services sector for instance, the bank has made total funding disbursement of N15.6 billion (US$95.2 million), which accounts for 16.4 per cent of total loan disbursement by the bank.

http://www.thisdaylive.com/articles/nexim-bank-and-task-of-export-promotion/1877...


US ethanol stocks dive after Brazilian export credit announced

(Biofuel Digest, 12 September 12 2014) In the US, ethanol producers’ stocks took an enormous hit yesterday after Brazil announced it would offer an export tax credit on ethanol. Meantime, potential regulatory changes in the U.S. have already put ethanol makers under pressure. The Environmental Protection Agency has proposed cutting the amount of biofuels that refiners will be required to blend into gasoline. And in California, regulators have given Brazilian sugar ethanol a better greenhouse gas rating than corn-based ethanol produced in the U.S., making Brazilian imports more desirable. The Digest reported yesterday on Brazil’s credit, which will expand a tax credit to sugar and ethanol producers to spur demand for biofuel for the second time this month. Under the program, known as Reintegra, producers will receive a tax credit worth 0.3 percent of their exports.

http://www.biofuelsdigest.com/bdigest/2014/09/12/pacific-ethanol-stock-takes-a-d...


What's New August 2014

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • GAO finds Ex-Im monitoring of defense exports weak
  • Fix export credit for Indian SMEs to achieve $750 bn target by 2018-19

GAO finds Ex-Im monitoring of defense exports weak

(US General Accounting Office, Washington, 28 August 2014) The Export-Import Bank of the United States (Ex-Im) has policies for monitoring the end use of defense articles and services it finances, including documentation requirements that are reflected in its financing  agreements with borrowers. However, these policies do not specify what actions Ex-Im officials should take if the bank does not receive the required dual-use-related documents. The requirements for each transaction vary, and while Ex-Im had received most of the information it required in its credit agreements regarding the three dual-use transactions it financed in fiscal year 2012, some of the information it received was late.

http://www.gao.gov/products/GAO-14-719


Fix export credit for Indian SMEs to achieve $750 bn target by 2018-19

(SME Times, New Delhi, 21 August 2014) Apex exporters body Federation of Indian Export Organizations (FIEO) has set an ambitious export targets of USD 350 billion for the current fiscal and USD 750 billion by 2018-19 and in order to achieve the desired export target, FIEO Chief Thursday said that the government should fix certain percentage of credit for small and medium enterprise (SME) exporters so that factors affecting such projections can be corrected and long term vision for exports is maintained.

http://www.smetimes.in/smetimes/news/top-stories/2014/Aug/21/fix-export-credit-f...


What's New July 2014

What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive What's New! you can subscribe at www.eca-watch.org  Questions? Email info@eca-watch.org

  • OECD ECAs Supported 26% of large commercial aircraft sale 2008-2013
  • British taxpayers underwrote ECA deals worth £140m by Cayman Islands firm
  • Indian ECA signs agreement with BRICS ECAs
  • Private sector white paper on the trade credit insurance environment
  • $80 Million Judgment Entered Against BNP Paribas for False USDA Export Credit Claims
  • Sinosure business up by 19.2%
  • French Foreign Minister Calls for End to Public Fossil Fuel Subsidies

OECD ECAs Supported 26% of large commercial aircraft sales 2008-2013

(US General Accounting Office, Washington, 8 July 2014) From 2008 through 2013, the US Ex-Im Bank (ExIm) and European ECAs supported 26% of large commercial aircraft deliveries. Since 2004, Ex-Im financing support for Boeing wide-body jet exports has generally increased, and, in fiscal years 2008 through 2012, Ex-Im's total authorizations increased significantly in the wake of the 2007 to 2009 financial crisis. The highest level of wide-body jet authorizations as a percentage of Ex-Im's total authorizations occurred in fiscal years 2007 and 2011, when it reached 24%. As of March 31, 2014, Ex-Im's financial exposure (outstanding financial commitments) in wide-body jets was about $32 billion which represented about 28% of Ex-Im's total financial exposure.

http://www.gao.gov/products/GAO-14-642R


British taxpayers underwrote ECA deals worth £140m by Cayman Islands firm

(The Independent, London, 6 July 2014) The Government is using taxpayers'’ money to underwrite £140m-worth of deals for a company whose ultimate ownership is based in a notorious tax haven. UK Export Finance, a branch of the Department for Business, is risking public funds to provide insurance cover for deals involving the aircraft leasing firm AWAS Aviation Capital Ltd., controlled by a friend of Foreign Secretary William Hague.

http://www.independent.co.uk/news/uk/politics/exclusive-british-taxpayers-underw...


Indian ECA signs agreement with BRICS ECAs

(Hindu Business Line, Mumbai, 16 July 2014) Export Credit Guarantee Corporation of India Ltd (ECGC) has signed a Memorandum of Understanding (MoU) on Co-operation with the export credit agencies of Brazil, Russia, China and South Africa in Fortaleza, Brazil. The MoU, which was signed in the presence of Heads of Governments from BRICS countries, will strengthen collaboration among BRICS countries' ECAs by establishing a framework of co-operation among them to support and encourage international trade between the BRICS countries, and wherever appropriate, to facilitate the supply of goods and services from their respective countries as part of a project in any of the BRICS countries.
http://www.thehindubusinessline.com/economy/ecgc-signs-pact-with-brics-countries...


Private sector white paper on the trade credit insurance environment

(Creditman, Amsterdam 15 July 2014) A new white paper "The future of Trade Credit Insurance€" has been published by Russell Group Limited, a risk management software and service company, for which Robert Nijhout, Executive Director at ICISA was interviewed. The white paper explores the current export and credit environment, supply chain disruption, global sovereign debt concerns, and the threats posed by non-payment and political risks. One interesting fact in the paper is that the International Trade Survey 2014 reported that €360bn of debt has been written off in Europe due to late or non-payment of bills.

http://www.creditman.biz/uk/members/news-view.asp?newsviewID=20163


Sinosure business up by 19.2%

(ECNS.CN, Beijing, 24 July 2014) China Export and Credit Insurance Corp (Sinosure) insured $229.12 billion in the first half of 2014, a year-on-year increase of 19.2 percent, the China Securities Journal reported on Tuesday. Short-term export credit insurance accounted for $181.38 billion; $7.62 billion was in mid to long-term export credit insurance and $18.88 billion was in overseas investment insurance.

http://www.ecns.cn/business/2014/07-22/125560.shtml


French Foreign Minister Calls for End to Public Fossil Fuel Subsidies

(Le Figaro, Paris, 6 July 2014) The French Minister of Foreign Affairs and International Development has called for an end to public subsidies for fossil fuels. After warning that our addiction to fossil fuels will destroy more wealth than it creates, he called on public and private investors to switch their investments from fossil fuels to renewable energy, and for companies to report their carbon emissions in order to make them a major factor in the choice of investments.
http://www.lefigaro.fr/flash-eco/2014/07/06/97002-20140706FILWWW00141-dereglemen...


$80 Million Judgment Entered Against BNP Paribas for False USDA Export Credit Claims

(US Dept. of Justice, Washington, 34 <july 2014) The U.S. Department of Justice announced today that an $80 million False Claims Act judgment was entered against BNP Paribas for submitting false claims for export payment guarantees issued by the U.S. Department of Agriculture.  BNP Paribas is a global financial institution headquartered in Paris.

http://www.justice.gov/opa/pr/2014/July/14-civ-780.html


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