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 for March 2023

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD Arrangement participants fail to clinch modernisation deals
  • Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action
  • Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments
  • SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine
  • Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest
  • Italy waters down fossil fuel pledge as Sace backs gas
  • Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil
  • The changing face of MENA export credit agency-backed financing
  • IMF calls for scaling up Climate Finance
  • Powering up women in trade, treasury & payments
  • EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan
  • Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports
  • Embraer closes US$ 200 million EXIM credit facility with Citibank
  • Polish ECA supporting US$73m (£60m) project to expand Angolan University

OECD Arrangement participants fail to clinch modernisation deals

(Global Trade Review, London, 15 March 2023) A meeting of the OECD Arrangement on export credits ended last week without an announcement of a breakthrough on any key planks in its modernisation agenda. The arrangement was created to avoid like-minded countries from undercutting each other on pricing but has been undermined by the fact that major export credit providers such as China and India are not members. Commercial banks, export credit agencies (ECAs), the European Union and governments who host export credit-supported projects have called for changes to minimum pricing, tenors and clear rules on sustainable financing to ensure that OECD ECAs remain competitive and can support a broad range of projects. Oil Change International, an NGO that campaigns for an end to public finance for fossil fuels, says it is disappointed that there was no apparent agreement on the Climate Change Sector Understanding (CCSU) aspect of the arrangement in order to boost incentives for green projects. OCI further notes that "OECD countries failed to conclude negotiations on climate friendly incentives to align Export Credit Agencies, the world’s largest international financiers of fossil fuels, with international climate goals", adding "the world cannot afford another wasted minute" and reminding them that 175 civil society institutions have called on the arrangement members to end support for fossil fuel projects by their ECAs.

https://www.gtreview.com/news/global/oecd-arrangement-participants-fail-to-clinc...


Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action

(Oil Change International, Washington, 15 March 2023) Promise Breakers, a report released today by Oil Change International, reveals that the Glasgow Statement, a joint commitment forged at the 2021 UN climate summit (COP26), is already shifting an estimated USD 5.7 billion per year out of fossil fuels and into clean energy, with the potential of a further 13.7 billion per year if all Glasgow Statement signatories fulfill their commitments. At COP26 in Glasgow, 39 countries and institutions pledged to end international public finance for fossil fuels by the end of 2022 and shift this money to clean energy. This report is the first international assessment of signatories’ implementation of the commitment since the passing of the end of 2022 deadline. The report reveals that while some high-income countries have kept their Glasgow commitment, a group of major providers of international public finance have broken their promise, including Germany, Italy, and the United States. The report contains a detailed report card on each signatories’ policies, with recommendations for improvement.

https://priceofoil.org/2023/03/15/new-report-commitment-to-end-international-fin...


Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments

 (Earth Org, Hong Kong, 28 March 2023) ) The new policy will allow Italy’s export credit agency SACE to support various fossil fuel projects, including exploration, production, storage, and distribution. Climate experts have strongly criticised the move, saying it would breach international commitments and slow down the country’s green transition. The new rules, presented by Premier Giorgia Meloni last week, will allow Italy’s state-owned export credit agency SACE to finance gas exploration and production projects until January 2026. Existing exemptions, which include projects deemed “strategic” for the nation’s energy and economic security, could postpone the date even further. Support for oil transport, storage, and refining projects will be allowed until 2024, and oil distribution until 2028. A deadline for gas transport and storage has yet to be defined.

https://earth.org/italy-fossil-fuel-projects/


SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine

(European Commisson, Brussels, 6 March 2023) The European Commission has approved, under EU State aid rules, an  amendment to an existing Italian guarantee scheme, including an up to €3 billion budget increase, for the reinsurance of natural gas and electricity trade credit risk in the context of Russia's war against Ukraine. The amendment was approved based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance. Under the administration of SACE, the Italian Export Credit Agency, the scheme  ensures that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. This measure will also make it easier for these customers to obtain a postponement of payment of their energy bills by up to 24 months, based on an agreement with their energy supplier. At the same time, it will ensure that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. The reinsurance of natural gas and electricity trade credit risk was deemed necessary in the context of Russia's war against Ukraine.

https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1484


Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest

(ReCommon, Rome, 29 March 2023) The decision by the government of Italy and SACE to break their climate promise made during COP26 in Glasgow has aroused strong indignation. SACE, Italy’s export credit agency, will continue to finance fossil fuel projects abroad until at least 2028, thus reinforcing its position as the leading supporter of the fossil fuel industry in Europe and sixth globally. This is an indignation so strong that it prompted the group Alleanza Verdi e Sinistra in the Chamber of Deputies to present an oral parliamentary question, aimed at clarifying three aspects:

  • whether the actions of the Government and SACE disregard the commitments made during COP26
  • whether the right steps will be taken to stop public investment and SACE’s guarantees for fossil fuel projects abroad linked to the extraction and transport of fossil fuels
  • whether there is a potential conflict of interest where the Chairman of the Board of Directors of SACE is also a member of the Board of Directors of Eni

ENI is an Italian global energy company, active at every stage of the value chain: from natural gas and oil to co-generated electricity and renewables, including both traditional and bio refining and chemicals

https://www.recommon.org/en/fossil-fuel-subsidies-and-potential-conflict-of-inte...


Italy waters down fossil fuel pledge as Sace backs gas

(Global Trade review, London, 22 March 2023) Italy has walked away from a pledge to end support for international fossil fuel projects by the end of last year, indicating it will continue to provide export credit cover for parts of the oil industry in the short term and delaying a decision to put an end date on its backing for the gas sector. Sace, the Italian export credit agency (ECA), yesterday published its long-anticipated plan for complying with its commitment alongside other nations at the 2021 Cop26 summit to “end new direct public support for the international unabated fossil fuel energy sector… except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement”. Signatories were supposed to have nixed backing for the sector by the end of last year, but the Sace policy shows that the agency did not end support for all exports involving the oil or gas sectors by that deadline. The policy shows that Sace ended support for unabated gas-fired power generation in January this year, but gas exploration and production facilities will still qualify for support until 2026.

https://www.gtreview.com/news/europe/italy-waters-down-fossil-fuel-pledge-as-sac...


Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil

(Price of Oil, Washington, 23 March 2023) The Netherlands just contradicted its COP26 pledge to end public finance for fossil fuels by the end of 2022 and shift this money to clean energy by issuing a commitment to insure the Brazil Santos Basin Pre-Salt Pole oil and gas production project for around USD 321 million. The Netherlands published a policy implementing the commitment in November 2022, but it has major loopholes that allow continued fossil support by the Dutch Export Credit Agency (ECA) Atradius DSB. This includes a “transition period” in breach of the agreed end of 2022 deadline, allowing projects that have requested financial support in 2022 to still be approved in 2023.

https://priceofoil.org/2023/03/23/the-netherlands-contradicts-cop26-promise-move...


The changing face of MENA export credit agency-backed financing

(TXF, London, 1 March 2023) The volume of ECA business and the number of deals is down in the Middle East, but at the same time we are seeing higher volume and more deals in North Africa. Industrial diversification is driving the changes of a region in transition. There is a significant evolution taking place in the Middle East and North African (MENA) region in terms of export credit agency (ECA)-backed export and project financing - which over the last few years has largely mirrored the changing industrial outlook and direction of much of the region. Oil/gas revenues in those countries have increasingly become used in sectors such as oil/gas downstream activities, healthcare, social projects, renewable energy, high-tech and productive industries. At the same time, many of the ECAs and banks have now stopped financing new upstream oil & gas projects and are focused on supporting exports and viable projects in other sectors throughout MENA.

https://www.txfnews.com/articles/7513/The-changing-face-of-MENA-export-credit-ag...


IMF calls for scaling up Climate Finance

(IMF, Luxembourg, 1 February 2023) IMF Deputy Managing Director Bo Li at the EIB Group Forum 2023 spoke to the importance of the green transition - "away from fossil fuels that are subject to supply disruptions and volatility, and towards renewables such as wind and solar energy.  The growing impact of global warming reminds us of the urgency. From heatwaves in Europe and wildfires in North America, to droughts in Africa and floods in Asia: last year saw climate disasters on all five continents." He noted that without decisive action, things are set to get worse because "we are clearly not on the right trajectory for cutting global emissions and need to cut global emissions by 25‑50 percent by 2030 compared to pre-2019 levels to contain temperature rises to between 1.5 and 2 degrees celsius. Financing needed to meet adaptation and mitigation goals are estimated at trillions of US dollars annually until 2050 but so far, we are seeing only around 630 billion dollars a year in climate finance across the whole world—with only a fraction going to developing countries. This is particularly concerning—because emerging and developing economies have vast needs for climate finance. And it underlines why it’s so important for advanced economies to meet or exceed the pledge of providing $100 billion per year in climate finance for developing countries. This is not just the right thing to do, it is the smart thing to do."

https://www.imf.org/en/News/Articles/2023/02/28/sp022823-scaling-up-climate-fina...


Powering up women in trade, treasury & payments

(Trade Finance Global, London, 8 March 2023) President and Chair of the Export-Import Bank of the United States (EXIM) Reta Jo Lewis gave a keynote address to the Trade Finance Global’s Women in Trade, Treasury & Payments roundtable, urging multilateral organisations to take strides towards improving on the economic welfare of societies, saying leaders must do their part to recognise that advancing gender equity must be a top priority as they work to achieve the sustainable development goals set by the United Nations. She noted that "Multilateral organisations also have the ability to establish norms and, most importantly, use their financing and programming to create incentives for nations to adhere or inch closer to these norms", and that EXIM recognises its responsibility to promote gender equity in trade finance. In the U.S., there are approximately 13 million women-owned businesses, and they are growing at more than double the rate of all other businesses. More than nine million Americans are employed by women-owned businesses, which are generating an estimated $1.9 trillion in revenue adding that although female entrepreneurship is growing exponentially in the U.S. and globally, one of the largest obstacles for women-owned firms is a lack of access to capital and/or funding.

https://www.tradefinanceglobal.com/posts/powering-up-women-trade-treasury-paymen...


EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan

(Global Echo, Washington, 8 March 2023) In November 2021 the U.S. provided $600 million in an export credit agreement to help Lithuania withstand pressure from China and joined the EU's WTO lawsuit in support of Vilnius. Days after the establishment in 2021 of the “Taipei Representative Office in Lithuania,” Taiwan’s de facto embassy, Beijing downgraded diplomatic relations and blocked most trade with Vilnius over what it calls a violation of the One China policy. The action prompted the European Union to sue China at the World Trade Organization over “discriminatory trade practices” against Lithuania that it said threatened the integrity of the EU single market. Beijing denies instructing Chinese companies to stop doing business with Lithuanian partners. In March 1990, Lithuania became the first republic to break away from the Soviet Union by declaring itself an independent state, a decision the White House applauded.

https://globeecho.com/news/north-america/united-states/us-lithuania-in-talks-aim...


Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports

(Microcapital Monitor, Boston, 10 March 2023) Asociación de Cooperativas Argentinas (ACA), a network of 143 agricultural cooperatives in Argentina, recently borrowed USD 80 million from three institutions, led by the Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO). FMO is lending ACA half of the total, and the Canadian government’s FinDev Canada and the Dutch cooperative Rabobank are each providing USD 20 million. ACA plans to use the cash as working capital in support of its exports of grains and seeds that it buys from cooperatives that represent 50,000 farmers. FinDev Canada is Canada's development finance institution (DFI), supporting the private sector in developing markets to promote sustainable development.

https://www.microcapital.org/microcapital-brief-asociacion-de-cooperativas-argen...


Embraer closes US$ 200 million EXIM credit facility with Citibank

(ARGS, London, 9 March 2023) Embraer has closed a US$ 200 million credit facility to finance purchases from direct suppliers in the United States. This financing is being provided by Citibank and guaranteed by the Export-Import Bank of the United States (EXIM), the country’s official export credit agency. This credit facility with EXIM and Citibank will support Embraer’s efforts to diversify its credit operations in the aviation market worldwide, providing the company with additional financing options and improving its loan profile.

https://airlinergs.com/embraer-closes-us-200-million-credit-facility-in-the-us/


Polish ECA supporting US$73m (£60m) project to expand Angolan University

(Construction Index, London, 30 March 2023) The project will extend the university and improve access to higher education. The project is being developed by a joint venture led by Quenda Business, a Polish project management, international business advisory and consulting company that operates across sub-Saharan Africa, particularly in Angola and the Democratic Republic of Congo. Quenda’s partner is Polish contractor Torhamer, a specialist in rail and infrastructure. Standard Chartered bank is acting as the social loan coordinator, bookrunner and coordinating bank, supported by the Polish export credit agency Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE).

https://www.theconstructionindex.co.uk/news/view/poles-spearhead-angola-universi...


What's New for February 2023

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • LNG at forefront of Dutch Atradius foreign fossil fuel funding
  • Atradius backs Dutch construction companies profiting from devastating Philippines mega-airport
  • Insurance giant Marsh under fire over role in controversial oil project
  • 26 Italian oil and gas companies visit Kuwait with SACE
  • Environmentalists continue to challenge UKEF funding for gas in Mozambique
  • OECD Civil Society Joint Position on ECA oil and gas restrictions
  • Progress within export finance on sustainability, but changes sorely needed on OECD Arrangement
  • WFW advises HSBC on US$300m SACE Facility for Bahrain's nogaholding
  • The French Mistral: The Case of the Russian Sale and Its Aftermath
  • Lessors & ECAs lead rhuge Air India jet order while Kenya Airways defaults on EXIM
  • Public Financing as a Critical Path Forward to a Just Energy Transition in Africa
  • Swedish Export Credit (SEK) Securities Exchange Act Form 6-K
  • Finnvera Group 2022 Financial Statements
  • New ECGC policies to support Indian Exporters: Economic Survey Report 2023
  • Pandemic, disasters, war: Michal Ron looks back on Berne Union Presidency

LNG at forefront of Dutch Atradius foreign fossil fuel funding

(Argus Media, London, 22 February 2023) The Netherlands is assessing several applications for international fossil fuel projects that could be granted state funding until the end of 2023, most of which target the LNG supply chain. Dutch export credit agency Atradius — in charge of the country's public financing for foreign fossil fuel projects — received 10 such applications before the end of last year that amount to €3.9bn in state funding if granted, according to a government document. The government in 2021 committed to ending all public financing for international unabated fossil fuel projects by 2022 but granted a one-year exemption to applications that were submitted before the deadline. Six of the 10 applications submitted before the end of 2022 concern transactions related to projects in the upstream sector, including the processing system for a new LNG project, a new offshore LNG project and the construction of a floating production platform for new fossil-fuel infrastructure, the government said today. Other applications concern the supply and delivery of vessels for existing and new fossil-fuel infrastructure. In addition, Atradius already granted coverage commitments for €8.4mn, with three projects related to the sale of LNG and two to the development of a new gas pipeline and the adaption of existing storage tanks. The government said that for "business sensitivity" reasons, it did not disclose the names of the applicants or the country where the projects would be located. The government's commitment in 2021 to ending public financing for international unabated fossil fuel projects built on a pledge made at the UN Cop 26 climate summit in Glasgow, which had already made room for exceptions "in limited and clearly defined circumstances that are consistent with a 1.5-degree warming limit and the goals of the Paris agreement". This included projects that "safeguard security of supply in Europe", such as LNG terminals and infrastructure developed for existing LNG sources, the Dutch government said last year. By Florence Schmit

[Dutch police arrested six climate activists at their homes on January 26th for planning to block the A12 highway to nonviolently demand an immediate end to the government's annual fossil subsidies. Nearly 40 civil society organizations and more than 1,000 people held a solidarity demonstration on the highway on January 28th - 768 were arrested and another demonstration is planned for March 11.. Dutch and Brazilian CSOs have also written to Dutch officials protesting support for a Brazilian floating production storage and offloading (FPSO) vessel ]

https://www.argusmedia.com/pages/NewsBody.aspx?frame=yes&id=2422404&menu=yes


Atradius backs Dutch construction companies profiting from devastating Philippines mega-airport

(Global Witness, London, 2 February 2023) Global Witness’ new report reveals how a new mega-airport north of Manila displaced hundreds of residents after a coercive consultation process in which armed soldiers were sent door-to-door, leaving community members describing feeling “terrified”... The Dutch company Royal Boskalis Westminster NV signed a contract worth €1.5bn with a Philippines conglomerate to construct the first phase of the project, with insurance granted by the Dutch state via export credit agency Atradius Dutch State Business. According to local communities, around 700 families stood to be evicted from their homes with about half reportedly receiving no compensation The New Manila International Airport project threatens Manila Bay’s diverse coastal ecosystems which are vital to prevent worsening climate change, as well as threatening to decimate marine biodiversity and migratory bird populations.

https://www.globalwitness.org/en/press-releases/dutch-construction-companies-wil...


Insurance giant Marsh under fire over role in controversial oil project

(Inclusive Development International, Asheville NC, 7 February 2023) Ugandan, Tanzanian and U.S.-based human rights and environmental groups have lodged a formal complaint alleging that Marsh is violating OECD guidelines for responsible business conduct by serving as insurance broker for the planned East African Crude Oil Pipeline (EACOP). The complainants are calling for Marsh to drop its insurance brokerage role for the EACOP. Inclusive Development International and 10 human rights and environmental organizations in Uganda and Tanzania, which are remaining anonymous due to fear of reprisals, filed a complaint to the U.S. government today alleging that New York-based insurance giant Marsh, a member of the Marsh McLennan group, violated international guidelines for responsible business conduct by serving as insurance broker for the highly controversial East African Crude Oil Pipeline (EACOP). The groups submitted the complaint to the U.S. National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises, an office within the U.S. State Department tasked with handling allegations against American companies.

https://www.inclusivedevelopment.net/pipelines/insurance-giant-marsh-under-fire-...


26 Italian oil and gas companies visit Kuwait with SACE

(Ansamed, Rome, 1 February 2023) Some 26 Italian companies operating in the oil and gas sector visited Kuwait Jan 30-31 as part of a trip organised by the Italian embassy in close collaboration with the Italian Export Credit Agency (SACE), Confindustria, the main association representing manufacturing and service companies in Italy, and the Italian Trade Agency. During the visit, meetings were held including ones at the Kuwait Chamber of Commerce and Industry, the Kuwait Petroleum Corporation (KPC) and the Ministry of Electricity and Water (MEW), as well as in-depth sessions discusing "doing business in Kuwait" curated by KPMG and major Kuwaiti law studios. In his opening remarks, the Italian ambassador to Kuwait, Carlo Baldocci, highlighted significant opportunities for Italian companies in Kuwait..

https://www.ansamed.info/ansamed/en/news/sections/economics/2023/02/01/26-italia...


Environmentalists continue to challenge UKEF funding for gas in Mozambique

(Mediarun Search, London?, 13 February 2023) In January, an appeals court rejected the request, but Friends of the Earth wants the arguments to be heard again by the Supreme Court (Portugal’s equivalent of the Constitutional Court). “The funding decision was made without taking into account the impressive emissions from flaring the gas, and without considering how these emissions align with globally agreed climate targets,” they said in a statement. Before passing a judgment, the Supreme Court will first assess the appeal and determine whether it has merit and whether an issue of greater constitutional importance is at stake. British export credit agency UK Export Finance (UKEF) has committed US$1,150 million (€1,077 million) in funding in 2020 to develop an offshore liquefied natural gas (LNG) project in the Rovuma Basin in Cabo Delgado, northern Mozambique. But Friends of the Earth say the environmental impact has not been properly assessed, contrary to the UK’s commitment to comply with the 2015 Paris Climate Change Agreement to limit global warming. The organization estimates that over the years of operation, the project will generate up to 4,500 million tons of greenhouse gases. The project in question, promoted by a consortium led by French oil major Total Energies in the Rovuma basin, was suspended in 2021 after attacks by armed groups in Cabo Delgado province. Worth between 20,000 and 25,000 million euros, the gas extraction megaproject is one of the largest private investments planned for Africa and is supported by several international financial institutions.

https://www.mediarunsearch.co.uk/environmentalists-have-appealed-to-challenge-br...


OECD Civil Society Joint Position on ECA oil and gas restrictions

(Oil Change International, Washington, 27 February 2023) Over 175+ organizations from over 45 countries have signed onto a Joint Civil Society Position calling for a robust prohibition on oil and gas finance under the OECD Arrangement on Export Credits. Export Credit Agencies (ECAs) are the world’s largest international public financiers of fossil fuels, supporting an average of over $33 billion USD per year in fossil fuels- which is 7x the amount of their support for renewable energy. The Joint Position calls on OECD negotiators, including the US, EU Commission, Canada, UK, and others, to table a robust proposal on oil and gas prohibition to listen to the science and align the Arrangement with a 1.5C warming trajectory. One week before international negotiators meet at the Organisation for Economic Co-operation and Development (OECD) in Paris (March 6-9) to discuss aligning export finance with international climate goals, more than 175 civil society organizations (CSOs) from over 45 countries have released a Joint Position calling on world leaders to end OECD export finance for oil and gas, and explaining how it can be done. They urge OECD members who consider themselves climate leaders to table a proposal for doing so. The position is also supported by the Co-presidents of the Club of Rome,

https://priceofoil.org/2023/02/27/over-175-organizations-launch-proposal-for-the...


Progress within export finance on sustainability, but changes sorely needed on OECD Arrangement

(TXF, London, 10 February 2023) The International Chamber of Commerce (ICC) White Paper update of its 2021 report shows that ECAs and banks have made good progress on the sustainability front, but lack of change to the OECD Arrangement is holding the sector back. The original White Paper (produced by ICC, Acre Impact Capital, The Rockefeller Foundation, and International Financial Consulting) provided policy and product recommendations designed to align the industry with the United Nations SDGs. The White Paper not only offers a roadmap towards a more sustainable export finance industry, but also provides suggestions from industry participants as to how the sector can change to ensure there are better terms for financing particularly for social projects and transactions. Launched at an ICC workshop on 8 February in Paris, discussions took place around the policy aspect, the framework alignment, the positive steps already witnessed and the route ahead for the sector including the roadblocks that are getting in the way of further improvements. Speaking to TXF about the Whiter Paper update, Chris Mitman, co-chair of the ICC Sustainability Working Group (ICC SWG) said: “It’s clear from this White Paper update that the vast majority of export finance participants – banks and ECAs – have individually made step changes in their response to the SDG delivery challenge. It’s also clear at an industry level there are encouraging signals from the EU and the majority of the Berne Union membership that a fundamental reform of the regulatory framework – most notably the OECD consensus – is required.” He added: “It’s critical therefore, that those few who are fortunate enough and have the privilege of holding seats at these unprecedented OECD modernisation discussions, take this once in a lifetime opportunity to put the export finance industry in a fundamentally stronger position to contribute meaningfully to the delivery of the SDGs."

https://www.txfnews.com/articles/7503/Progress-within-export-finance-on-sustaina...


WFW advises HSBC on US$300m SACE Facility for Bahrain's nogaholding

(WFW, London, 9 February 2023) Watson Farley & Williams (“WFW”) advised HSBC Bank Middle East Limited, acting as Export Credit Agency (ECA) Co-ordinator and Sole Structuring Bank, and HSBC Bank plc (jointly “HSBC”) as Agent and Sustainability Co-ordinator, on a US$300m Push Facility guaranteed by the Italian Export Credit Agency (“SACE”) to the Oil and Gas Holding Company B.S.C. (“nogaholding”) for financial support for key energy projects in the Kingdom of Bahrain. Under this financing, nogaholding commits to pre-agreed sustainability objectives. The 10-year financing structured as a sustainability-linked loan is part of SACE’s Push Strategy programme and aims to increase business opportunities for Italian exporters, strengthening SACE’s positioning in a strategic region for Italian exports. The Push Strategy primarily targets local counterparts of Italian exporters – selected and leading foreign buyers and provides access to medium to long-term financing guaranteed by SACE to support their investment and growth plans.

https://www.wfw.com/press/wfw-advises-hsbc-on-us300m-push-facility-with-sace-for...


The French Mistral: The Case of the Russian Sale and Its Aftermath

(SLD Info, Paris, 16 February 2023) France took a financial hit of €409 million ($440 million) as a result of  its 2015 cancellation of the sale of two helicopter carriers to Russia, the national audit office said in its report on French arms exports. “In total, taking into account the result of negotiations with Russia, cancellation of payments, payments to Naval Group, modifications and the sale of the ships to Egypt, this transaction cost France €409 million,” the independent office said in its report, Support for Export of Military Matériel. The then French president, François Hollande, cancelled in August 2015 a controversial sale of the Mistral class warships, under pressure from the U.S., central European and Baltic nations, after Russia seized in 2014 the Crimean peninsula from Ukraine. France paid Russia total reimbursement of €949.75 million for cancelling the order for the Mistrals, comprising a core payment of €892.9 million, and a further €56.8 million, the Sept. 15 2015 National Assembly report said. Egypt’s purchase of the two Mistrals followed Cairo’s 2015 order for French weapons worth €5.2 billion for 24 Rafale fighter jets, a FREMM multimission frigate, and air-to-air and naval missiles. Coface consistently made money between 2010-2021, with premiums exceeding claims, the report said, with only 2015 showing a net loss of €82 million due to the claims made on cancellation of the Mistral deal with Russia. The sale to Egypt limited the amount of claim, the report said.

https://sldinfo.com/2023/02/the-french-mistral-the-case-of-the-russian-sale-and-...


Lessors & ECAs lead rhuge Air India jet order while Kenya Airways defaults on EXIM

(Reuters, Bengaluru, 15 February 2023) As global aerospace savours a record Air India 500-plane deal cheered by world leaders, it is the turn of leasing companies to line up for a piece of the action. "The large majority of these aircraft are likely to be financed through sale-and-leasebacks with perhaps 20% of the financing come from the (Western) export credit agencies," said aviation adviser Bertrand Grabowski. Experts say the mainly Dublin-based lessors, who rent jets out for a monthly fee, could play a significant role in financing the Tata-owned airline's Airbus and Boeing spree. In other news, the Export-Import Bank of the United States issued Kenya a default notice for delayed payment of a $454 million loan that the government borrowed to fund Kenya Airways. The flag carrier defaulted on the part of its $525 million loan from Exim, which the Kenyan government guaranteed. The Kenya National Treasury plans to reduce Kenya Airways' state funding by $79.8 million, taking it from $239.5 million to $159 million, according to its 2022-23 supplementary budget. The treasury is reducing its support for the flag carrier in line with the government's strategy to lessen the airline's dependency on state funds by the end of 2023, although the airline will receive $283 million in financial aid from the state to continue operations.

https://www.reuters.com/business/aerospace-defense/lessors-lead-rush-finance-hug...


Public Financing as a Critical Path Forward to a Just Energy Transition in Africa

(Creamer Media's Engineering News, Pretoria?, 13 February 2023) With the world population recently crossing the 8 billion mark and Africa expected to contribute more than half of the projected increase in the global population up to 2050, now more than ever, access to reliable, sustainable, and affordable energy is critical for the continent. Given the historical strain between developed economies (which modernized with fossil fuels) and developing economies (now being asked to forgo this route) [while developed country ECAs urge them to expand fossil fuel production!], it is evident that sustainable, long-term global cooperation and energy security will be required to address the need for Africans to have access to sustainable, reliable, and affordable energy... Electricity generation in South Africa and Nigeria accounts for more than 80% of GHG emissions on the continent. In South Africa, coal-fired generation currently accounts for more than 70% of installed capacity and is expected to remain the primary power generation source through 2030... South Africa’s Integrated Resource Plan aims to install 3GW and 9.6GW of solar and wind capacity respectively between 2023 and 2028 as well as  3GW of gas by 2030. In contrast, Nigeria, on the hand has about 13 GW of installed generation capacity, largely dependent on hydropower (12.5%) and thermal power (87.5%). Of this, only 3.5 GW to 5 GW are typically available for onward transmission to the final consumer. Self-generation installed capacity via diesel generator units is estimated to be about 25 GW... Public capital plays an essential role in accelerating energy infrastructure projects in both developed and developing markets. Developing markets especially need continued government-supported financing for renewables and gas power generation to enable an equitable energy transition... To meet global decarbonization goals while continuing to drive electrification and raise the standard of living in developing markets, ECAs and DFIs should strive to become even more engaged to support a broad range of decarbonization technologies. [We ask, what balance is necessary, support of new natural gas power generation projects to replace existing or planned coal assets, or African renewable sources which do not put the onus on Africans to save the planet while sustaining northern consumption excess?]

https://www.engineeringnews.co.za/article/public-financing-as-a-critical-path-fo...


Swedish Export Credit (SEK) Securities Exchange Act Form 6-K

(Street Insider, Birmingham, MI, 1 February 2023) SEK Year End Report 2022: Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. February 1, 2023 Swedish Export Credit Corporation, Magnus Montan, Chief Executive Officer. SEK has maintained a strong business flow during the year, including in the fourth quarter. New lending in the fourth quarter amounted to Skr 34.8 billion, and Skr 133.2 billion for the full year, which was the highest ever new lending volume in the space of one year... Overall, the credit portfolio has an extremely high credit quality and SEK often uses risk mitigation measures, primarily through guarantees from the Swedish Export Credit Agency (EKN) and other government export credit agencies in the Organisation for Economic Co-operation and Development (OECD), which explains the low provision ratio.... New lending Skr 133.2 billion (2021: Skr 77.0 billion), new green lending Skr 7.4 billion [Note "green" is 9.6% of all new lending] (2021: Skr 11.5 billion; new green borrowing Skr 9.0 billion (2021: Skr 6.1 billion)

https://www.streetinsider.com/SEC+Filings/Form+6-K+SWEDISH+EXPORT+CREDIT+For%3A+...


Finnvera Group 2022 Financial Statements

(Yahoo Finance, Helsinki, 16 February 2023) “Despite the impacts of the coronavirus pandemic, the war launched by Russia and the uncertain operating environment as well as inflation, Finnish companies were very active in 2022, and the demand for Finnvera’s financing remained at a high level. Finnvera granted domestic loans and guarantees amounting to EUR 1.0 billion (1.5). More than 90% of the financing was allocated to Finnvera’s strategic priorities, that are start-ups, companies aiming for growth and internationalisation and, for example, transfers of ownership. Finnvera granted EUR 5.9 billion (4.6) in export credit guarantees and special guarantees, and EUR 0.9 billion (0.7) in export credits. The largest individual financing projects concerned forest sector deliveries to Brazil and telecommunications sector deliveries to the United States and Japan. Finnvera has paid a total of EUR 100 million in compensation for liabilities at the beginning of February 2023. The final amount of Finnvera’s losses will be determined later. The loss provisions for exposure in Russia remained unchanged, the loss provisions made in the cruise shipping sector were reduced and the loss provisions for the domestic financing increased in the last quarter of the year. Due to the war and arrangements necessitated by sanctions, Finnvera’s exposure relating to Russia more than halved to EUR 422 million during the year,

https://uk.finance.yahoo.com/news/report-board-directors-financial-statements-09...


New ECGC policies to support Indian Exporters: Economic Survey Report 2023

(Taxcan, New Delho, 1 February 2023) The Economic Survey Report 2023 points out the significance of new Export Credit Guarantee Corporation (ECGC) policies to support Indian Exporters and the expectational changes by the 2023 Budget. The Export Credit Guarantee Corporation (ECGC) supports Indian exporters and banks by providing export credit insurance services. The new scheme launched in July 2022, under its ECIB products, has the enhancement of the mechanism of insurance cover to banks providing pre-shipment and post-shipment financeto 90 per cent from an average coverage of 70% for accounts with an export working capital limit of up to X20 crore to support small exporters. This framework could largely reduce the net demand for foreign exchange, the US dollar in particular, for the settlement of current account-related trade flows. Further, the use of INR in cross-border trade is expected to mitigate currency risk for Indian businesses. The Key aspect of this was that it could assist Indian exporters in getting advance payments in INR from overseas clients and in the longer term promote INR as an international currency once the rupee settlement mechanism gains traction.

https://www.taxscan.in/new-ecgc-policies-to-support-indian-exporters-economic-su...


Pandemic, disasters, war: Michal Ron looks back on Berne Union Presidency

(Global Trade Review, London, 30 January 2023) Michal Ron was elected president of the Berne Union, the international association for the export credit insurance industry, at a particularly unstable time for global trade. In an exclusive interview with GTR, she looks back on her two-year term, which included major shocks to the trade credit insurance sector, beginning with a global pandemic and ending in war in Europe. "Starting with a global pandemic, it was already in one of the worst moments, during lockdown. Then we had a very high number of natural disasters… all a consequence of climate change. And then as if that wasn’t enough, we had the war in Ukraine, at the very heart of Europe. One of my objectives when I began was definitely inclusivity and giving a voice to the lesser-known emerging markets, that multilateralism approach... Another was climate. Climate for me was one of the biggest pillars of my presidency. We created a working group task force on climate that included not just members of the Berne Union, but also the banking sector, development finance institutions and multilaterals. So that has been extremely effective and helpful for those of us who are, to an extent, lagging behind in terms of transformation towards greener, renewable energy, the circular economy... I also opted for a geographical region as an area of focus, because of its potential, which is the Sub-Saharan Africa region. Not everyone exports to, or is active in, that continent. But this is still the area where the largest growth, both trade and GDP, per annum is forecast. It is a very complex, and we could say also a particularly challenging region to operate in... My biggest regret for this period was also on the multilateralism front. As a result of the Ukraine war, we had to suspend the membership of the Union for two countries, Russia and Belarus. It went against all my past ideology, in terms of professional conduct on export credit and because it goes against the apolitical nature of the Berne Union. It was the first time ever that members were suspended on a geopolitical basis. It was petitioned by many of the Berne Union members, and it became inevitable when the UN came out with a resolution last March, condemning both countries on the international front, and sanctions were introduced. GTR: The war has also caused major energy price hikes; do you think export credit agencies (ECAs) are going to play a bigger role in helping secure imports, like the recent deals Euler Hermes has guaranteed with Trafigura for German gas and strategic commodities imports? Ron: We call it a strategic import. It might have different names in different countries, but that’s what we’re looking at. It has become part of many ECAs’ portfolios and we are seeing the number increasing day by day... GTR: Does ECA support for gas potentially contradict some climate goals, especially for members of the Export Finance for Future, who have committed to phasing out support for fossil fuels? Ron: There is no one-size-fits-all solution to this issue. You have countries that are very adventurous in terms of climate change. Very few, but still some, have already declared a net-zero strategy already commencing on the first of January [2023]. But let’s not forget that so far we are talking about four ECAs... But then you have countries such as Germany, such as Italy, that have been very dependent on gas. This is clearly an issue that has internal contradictions in terms of what to do about public support for fossil fuels. We obviously have a situation where we need to take into account a gradual phasing out, rather than an abrupt one point in time. At the Berne Union we’re doing a lot of information-sharing seminars in order to learn from more adventurous and greener export credit agencies and companies, insurers: how they do it, how they got there, how are they using scientific criteria to monitor progress? We are, in parallel, grappling with the complexity of ensuring additional sources of energy. I think most of us will not go back to the worst offenders such as coal-based plants.

https://www.gtreview.com/news/global/pandemic-disasters-war-michal-ron-looks-bac...


What's New for January 2023

"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!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Public Financing as a Critical Path Forward to a Just Energy Transition in Africa
  • Trade Finance In Wartime
  • Heads of G7 Export Credit Agencies Express Support for Ukraine
  • Court finds UKEF’s $1.15 bln funding for Mozambique LNG project lawful
  • UKEF signs deal with Egyptian construction titan to boost post-Brexit trade with Africa
  • "Green" Hydrogen: What role for ECAs?
  • Comparing Government Financing of Reactor Exports
  • Saudi and Italian ECAs sign MoU to enhance trade cooperation
  • Mexico Expects State Oil Giant Pemex to Pay Its Debt Without Government Help
  • Chinese export insurer scales up support for foreign trade
  • Spain's CESCE restricts fossil fuel finance, but leaves major gas loopholes
  • India extends aid worth USD 3.9 billion to help Sri Lanka face economic crisis
  • Uganda cancels $2.2bn Chinese rail contract, signs with Turkey
  • GE secures €1bn agreement with Polish ECA
  • Finnvera change signals new ECA opportunities for SMEs
  • Dutch climate expenditure audit reveals inconsistencies

Public Financing as a Critical Path Forward to a Just Energy Transition in Africa

(Engineering News, Johannesburg 12 January 2023) The path to decarbonizing the energy sector is not a “one-size-fits-all” between developed and developing markets. Given the historical strain between developed economies (which modernized with fossil fuels) and developing economies (now being asked to forgo this route), it is evident that sustainable, long-term global cooperation and energy security will be required to address the need for Africans to have access to sustainable, reliable, and affordable energy. If we truly want to increase electrification in developing countries in Africa and help provide reliable, affordable, and sustainable energy, policy makers and financial institutions must partner with project sponsors to tailor capital solutions that best fit the region and its countries. ECAs and DFIs along with commercial banks and other multilaterals play a critical role in enabling access to the capital required to deliver a more just and equitable energy transition today and for future generations. In a recent opinion piece, Jonathan Bell, Editor in Chief of TFX News asks "When will sub-Saharan Africa be able to properly see the light?' and addresses "the jokers that think such countries ought to be moving straight to renewables – they need to ask how could they pay for such projects, and how could any related debt be repaid?" With respect to the Friends of the Earth opposition to the Mozambique LNG project he argues that "some of [those] volumes to be exported were destined to be used in power generation to replace coal and oil generators - a move which would lower carbon emissions globally." [What's New Editorial comment: Given that northern industrial development was largely financed on the backs of African slaves, one could also ask why we must hold back on tightening our own belts and coming up with the admittedly huge means to pay for their carbon free investments, in reparation for what we got from Africa, instead of begging for the delay of a long overdue "just" transition to keep ourselves warm.]

https://www.engineeringnews.co.za/article/public-financing-as-a-critical-path-fo...


Trade Finance In Wartime

(Global Finance, New York, 3 January 2023) According to the World Bank, Ukraine’s GDP over 2022 will have contracted by some 35%. Further decline is expected for 2023, as the full economic implications of Russia’s war become clear. The huge drop-off in trade has of course severely impacted trade finance. Many of the correspondent banks that used to do regular business pulled away, while long-term financing projects have been pretty much shelved across the board. ECA coverage is scarce in the extreme. In many cross-border transactions, cash is king. The international media has rightly focused on the huge disruptions to supply lines, including shipments of Ukrainian grain from Black Sea ports, and Russian targeting of Ukraine’s energy infrastructure has cast much of the population into freezing darkness and has massively disrupted business. With foreign banks and customers understandably jittery, the role of international financial institutions like the International Finance Corporation in guaranteeing transactions has been key. The European Bank for Reconstruction and Development (EBRD) has firmly committed to supporting Ukraine. Ukrexim’s Shchur echoes this, “At such a fateful time, we really want to encourage prominent foreign banks and ECAs to become more actively involved in trade finance operations here.

https://www.gfmag.com/magazine/january-2023/trade-finance-ukraine-russia-war


Heads of G7 Export Credit Agencies Express Support for Ukraine

(UKEF, London, 22 January 2023) Acknowledging the G7 Leaders’ Statement on Support for Ukraine, as heads of the official export credit agency (ECA) schemes of the G7 nations – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States of America – we wish to express our ongoing support for Ukraine and for its reconstruction efforts and our unwavering solidarity with the Ukrainian people for as long as it takes. Since Russia’s full-scale invasion of Ukraine, the G7 ECAs have remained open for underwriting Ukrainian business opportunities in solidarity with Ukraine during this difficult time. We also continue to participate in the wider dialogue with other ECAs and multilateral institutions, including within international fora such as the Berne Union, to find ways to enhance cooperation, share information and leverage our collective platforms to bring visibility to and stimulate support for Ukraine.

https://www.gov.uk/government/news/heads-of-g7-export-credit-agencies-joint-stat...


Court finds UKEF’s $1.15 bln funding for Mozambique LNG project lawful

(Offshore Energy, Schiedam, 13 January 2023) A London court has ruled that the UK government’s funding of up to $1.15 billion of financing for the Mozambique LNG project led by French energy major TotalEnergies is lawful. According to reports by Reuters, the decision by London’s Court of Appeal dismissed an appeal by the environmental group Friends of the Earth. The group argued that financing for the project was permitted after it was incorrectly judged to be compatible with the Paris Agreement and its goal to limit global warming to 1.5 degrees. The total emissions for the new gas field, which research by the environmental group finds would total some 4.5 billion tonnes of greenhouse gases (GHG) over its lifetime – more than the combined annual emissions of all 27 EU countries, were not calculated as part of the government’s approval process or evaluated against global climate goals, the environmentalists warned. At the time of filing the legal challenge, Leigh Day solicitor Rowan Smith, who represented Friends of the Earth, noted that the Court of Appeal’s answer is likely to be a “defining moment in climate change litigation”.

https://www.offshore-energy.biz/report-court-finds-uks-1-15-bln-funding-for-moza...


UKEF signs deal with Egyptian construction titan to boost post-Brexit trade with Africa

(City A.M., London, 20 January 2023) (UK Export Finance has agreed a post-Brexit deal with one of Egypt’s biggest construction and engineering firms, Hassan Allam Holding, to increase cooperation across Africa. Hassan Allam has a vast a portfolio of projects ranging from solar power and water to petrochemicals facilities, museums, airports, and thousands of kilometres of roads and bridges. UKEF has up to £2bn available to support projects in Egypt, as Britain looks to spread its wings after leaving the European Union and trade globally.

https://www.cityam.com/egypt-africa-uk-export-finance-deal/


"Green" Hydrogen: What role for ECAs?

(ECA Watch, Ottawa, 30 January 2023) A series of articles appearing in our Google Alert searches for "export Credit" point to a number of interesting pieces on ECAs and hydrogen. The IEA has forecasted the global green hydrogen market to grow from almost zero in 2021 to 9-14 metric tons per annum (mtpa) in 2030 and 125-300 mtpa by 2050. Exports are expected to account for 12 mtpa of low-carbon hydrogen by 2030, of which approximately 90% is expected to be "green" hydrogen. Today, less than one percent of current hydrogen production is low-carbon. This means most of the hydrogen we make comes from fossil fuel plants that release carbon into the atmosphere. Development of the green hydrogen industry will require substantial capital and the financing for such projects will have to borrow more from the precedents of offshore wind and LNG undertakings, an Oxford Institute for Energy Studies said in its latest study. That study is based on the project financing cost of what it called an ‘archetype’ project wherein 1 GW of solar power is used to make green hydrogen, which is converted to 250,000 tons per annum  green ammonia for export with a capital cost of $2 billion. Last month’s second Green Hydrogen Summit in Muscat brought together leaders in every aspect of the hydrogen value chain from production and transportation to applications and storage.  Spearheaded by the Omani government, the Summit demonstrated the Sultanate’s ambition to be a global leader in green hydrogen.




Comparing Government Financing of Reactor Exports

(Columbia University, New York, 25 August 2022) This report, part of wider work on nuclear energy at Columbia University’s Center on Global Energy Policy, compares the financing terms offered between 2000 and 2021 by the world’s major exporters of nuclear power plants: Russia, France, the Republic of Korea (ROK), China, and the United States. Decarbonizing the world’s energy supply by 2050 will require financing low-carbon energy projects at a cost of upwards of trillions of dollars. Nuclear energy is one of the few dispatchable low-carbon energy resources, and studies by the International Energy Agency have estimated a possible doubling of nuclear power as part of scenarios for achieving net-zero greenhouse gas emissions by midcentury. Large, capital-intensive projects such as nuclear power plants can be challenging for some countries to finance, however. As a result, countries wishing to build nuclear reactors look for attractive financing from supplier nations in the form of loans and equity.

https://www.energypolicy.columbia.edu/publications/comparing-government-financin...


Saudi and Italian ECAs sign MoU to enhance trade cooperation

(Arabian Business, Abu Dhabi, 27 January 2023) The agreement envisages establishing a framework for mutual reinsurance to enhance the presence of Saudi exports in Italian markets. Saudi Export-Import Bank CEO Saad bin Abdul Aziz Alkhalb hailed the agreement as a step forward in the bank’s efforts to improve and diversify Saudi non-oil exports and enhance their competitiveness, in addition to providing funding for Saudi exports and insurance services and export credit insurance with competitive advantages in line with the targets of the Kingdom’s Vision 2030 to increase the value of non-oil exports from 16 percent to 50 percent of the non-oil GDP.

https://www.arabianbusiness.com/politics-economics/saudi-export-import-bank-and-...


Mexico Expects State Oil Giant Pemex to Pay Its Debt Without Government Help

(Yahoo News, Mexico, 3 January 2023) Mexico’s Finance Ministry expects Petroleos Mexicanos to pay debt coming due in the first quarter without government help. Refinancing debt could include but won’t be limited to bank loans, bond issuance, direct financing or financing guaranteed by export credit agencies. After providing the oil company with financial support in recent years, the Finance Ministry now wants Pemex to foot the bill itself unless it doesn’t have enough cash to do so by the end of the quarter... Pemex is the world’s most indebted oil major, with financial obligations of $105 billion by September 2022. It is under enormous financial strain as the Mexican government wants it to halt oil exports and invest in loss-making refineries — all of which while the company fails to stem long-term production declines. Mexico’s oil driller has 188 billion pesos in amortizations due in 2023 and must maintain zero net indebtedness in real terms, it said in its annual financing plan.

https://news.yahoo.com/mexico-expects-state-oil-giant-184347210.html


Chinese export insurer scales up support for foreign trade

(Xinhua, Beijing, 14 January 2023) SINOSURE stepped up efforts to boost the country's foreign trade in 2022, data from the company showed on Saturday. The insurer handled underwriting totaling 899.58 billion U.S. dollars for insured businesses throughout the year, serving over 170,000 clients, it said.  Of the total, 745.16 billion dollars was short-term export credit insurance, up 10.2 percent year on year. The underwriting for small and medium-sized enterprises amounted to 226.78 billion dollars, a 15.7 percent increase from a year earlier...  The company added that it also increased insurance support to stabilize industrial and supply chains, nurture new business models, and boost services exports. SINOSURE is a state-funded and policy-oriented insurance company that promotes China's foreign economic and trade development and cooperation. It was officially launched and put into operation in 2001, and its service network now covers the whole country.

https://english.news.cn/20230114/fc4382e5ff0548a7b77ce5eee3fc97ea/c.html


Spain's CESCE restricts fossil fuel finance, but leaves major gas loopholes

(Price of Oil, Washington, 23 January 2023) Spain has released a new policy for CESCE, the Spanish government export credit agency, restricting public finance for oil and gas. Spain is a major public financier of international fossil fuel projects, providing USD 2.1 billion a year between 2018-20 to fossil fuels, and USD 47 million per year to clean energy, or 97.8% to fossil fuels and just 2.2% to clean energy. Loopholes include support for Liquefied Natural Gas (LNG) processing, transportation and storage, as well as a widely-defined loophole for gas power that could mean gas power plants could be approved in most developing countries. This policy falls short of a major pledge Spain made at the 2021 COP26 UN climate summit to stop financing fossil fuel projects.

https://priceofoil.org/2023/01/23/spains-export-credit-agency-restricts-fossil-f...


India extends aid worth USD 3.9 billion to help Sri Lanka face economic crisis

(Asia News Initiative, New Delhi, 14 January 2023) India's EXIM bank and State bank of India extended export credit facilities worth USD 1,500 million to Sri Lanka for the import of essential commodities. India has extended aid worth USD 3.9 billion to help Sri Lanka sustain itself in face of the acute economic and financial crisis and meet its immediate needs such as medicines, cooking gas, oil and food items, Sri Lanka based news publication News 19 reported. In February 2022, India signed an agreement for the supply of petroleum products worth USD 500 million from the Indian Oil Company through a credit line in order to help Sri Lanka overcome its fuel shortage. This was expanded by an additional USD 200 million worth of petroleum products in April 2022.

https://www.aninews.in/news/world/asia/india-extends-aid-worth-usd-39-billion-to...


Uganda cancels $2.2bn Chinese rail contract, signs with Turkey

(The East African, Nairobi, 12 January 2023) After eight years of non-execution, the Uganda government has terminated the contract of China Harbour Engineering Company (CHEC) to build the country’s first phase of standard gauge railway (SGR), a 273km line from Malaba to Kampala. Kampala says the financing model for the project will also change, with Yapi Merkezi, which is building Tanzania’s SGR, expected to tap into its network to bring Export Credit Agencies (ECAs) on board that will finance and breathe life into the moribund project. The line, starting from the Malaba border post between Uganda and Kenya, was expected to cost $2.2 billion, but the Chinese financiers did not fund the project after casting doubt on Kenya’s SGR reaching the border to link with Uganda’s and making the project viable.

https://www.theeastafrican.co.ke/tea/business/uganda-cancels-sgr-contract-chines...


GE secures €1bn agreement with Polish ECA

(Power Engineering International, Maarssen, 20 January 2023) GE and KUKE, Poland’s Export Credit Agency (ECA), have confirmed a €1 billion ($1.1 billion) export finance co-operation agreement which will help facilitate capital investment, and enable a mix of renewable and gas power projects globally through Polish exports and supply chain. Under the agreement, GE will be the second global organisation to use KUKE’s financial instrument from its new export support programme. KUKE’s financing solutions from the programme serve to encourage industry players to invest, manufacture and export technology around the globe, including new markets, while supporting local supply chains in Poland.

https://www.powerengineeringint.com/nuclear/strategic-development-nuclear/ge-sec...


Finnvera change signals new ECA opportunities for SMEs

Global Trade Review, London, 18 January 2023) Finland’s export credit agency (ECA), Finnvera, can now offer credit directly to foreign customers of Finnish export companies after the country’s parliament approved a necessary amendment last week. Finnvera says that the goal is to give smaller export projects and small and medium-sized enterprises (SMEs) improved access to financing. “Currently, Finnvera grants large export credits to foreign buyers but only in cooperation with banks. However, it has been difficult to arrange buyer financing for export transactions amounting to less than €20mn, which has slowed down the development of the exports of Finnish SMEs in particular,” Juuso Heinilä, executive vice-president at Finnvera, tells GTR.

https://www.gtreview.com/news/europe/finnish-law-change-signals-new-export-credi...


Dutch climate expenditure audit reveals inconsistencies

(Argus Media, Amsterdam, 30 January 2023) The Dutch government does not provide a "clear and complete" overview about the state's climate expenditure, while certain fossil fuel subsidies are "at odds" with domestic climate goals, according to a report by the Dutch court of audit. The court of audit presented its findings to the Dutch parliament on 25 January, noting that the three ministries — economic affairs and climate policy, finance, and climate and energy policy — involved in reporting the state's climate expenditure did not provide consistent information. Dutch export credit agency Atradius — in charge of the country's public financing for foreign fossil fuel projects — ended all financing for export credit insurance as of this year in line with the Glasgow pledge made during the UN climate conference Cop 26 in 2021, while certain exemptions for oil and gas projects remain in place. Projects that ensure European energy supply security by reducing "unwanted" dependencies on Russian oil and gas are among those exemptions granted

https://www.argusmedia.com/en/news/2414260-dutch-climate-expenditure-audit-revea...


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