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.

Featured publications and stories

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


What's New June 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

  • Republicans escalate battle for closure of U.S. Export Import Bank
  • Officials at Ex-Im Bank Face Investigations
  • Export credit finance for coal under fire
  • Oil Change International publishes online Coal Subsidies Toolkit
  • US, UK and Dutch government coalition seeks to limit export credit financing for coal plants
  • US Ex-Im 2013 Competitiveness Report provides tidbits of OECD ECA data

Republicans escalate battle for closure of U.S. Export Import Bank

(ECA Watch, Ottawa, 30 June 2014) The ongoing battle waged by radical completely free market Republicans to close the U.S. Export Import Bank escalated this month, fuelled by Wall Street Journal revelations of alleged cronyism, the release of Ex-Im's 2013 Competitiveness Report and a September 30 deadline for renewing Ex-Im fiscal authorization. Below we provide a few links to this debate.

McCarthy sides against Export-Import Bank Financial Times
U.S. Export-Import Bank chief faces heat from Republicans in House Washington Post
Conservative Critics Lobby For An Early End To Export-Import Bank National Public Radio
US small businesses lobby for survival of embattled Export-Import Bank Times of India
Instead of killing Export-Import Bank, why not restrict it to small business? Albany Business Review
Export-Import Bank in Jeopardy as Boehner Refuses to Back Charter Renewal Newsmax
Republicans fight a civil war over export credit Financial Times




Officials at Ex-Im Bank Face Investigations

(Wall Street Journal, Washington, 23 June 2014) The U.S. Export-Import Bank has suspended or removed four officials in recent months amid investigations into allegations of gifts and kickbacks, as well as attempts to steer federal contracts to favored companies.

http://online.wsj.com/articles/officials-at-ex-im-bank-face-investigations-14035...


Export credit finance for coal under fire

(ECA Watch, Ottawa, 30 June 2014) As published last month, NGOs have called for an end to export credit support for high carbon projects. The European Union is supposed to be phasing out all subsidies for domestic coal plants by 2018 and, as noted in another article in this issue of What's New, the US, UK and Netherlands hope to encourage incentives to limit ECA support to low emission coal technologies. But the EU Trade Department has circulated a report saying export credits, or preferential loans to help cover exports costs, should be continued for the most modern coal plant technology, claiming coal as an important energy source is not going to disappear immediately. The issue was to be debated at an OECD Export Credit Working Group meeting in the week of June 16th. ECA preferential support accounted for some US$5 billion from 2007-2013, with Germany, followed by France, being the biggest providers in Europe. Environmental groups continue to insist that all taxpayer subsidized support for all coal and other high carbon projects end.




Oil Change International publishes online Coal Subsidies Toolkit

(Oil Change International, Washington, June 2014) A new campaign toolkit provides guidance on how to identify the many forms of coal subsidies, to quantify them where possible, and to campaign to ultimately eliminate them. The toolkit covers national subsidies and public finance for coal, including exploration, mining, processing, power plants, and associated infrastructure. The kit includes links to valuable resources such as the OECD’s “Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels”, which provides a summary of each of the 34 OECD countries’ budgetary and tax-related measures at the central-government level and for selected sub-national units of government.  It includes an online database of quantitative estimates for a subset of producer and consumer subsidies for each country.

http://priceofoil.org/coal-subsidies-toolkit/


US, UK and Dutch government coalition seeks to limit export credit financing for coal plants

(Reuters, Washington, 16 June 2014) The United States, United Kingdom and Netherlands will float a plan this week requiring new coal-fired power plants to meet a carbon pollution standard in order to receive public funding from the world's wealthiest countries, according to a draft seen by Reuters. The countries will present the plan to the Organization for Economic Cooperation and Development's exports credits group, which started a week-long meeting on Monday June 16th.

http://www.reuters.com/article/2014/06/16/coal-financing-oecd-idUSL2N0OX1W720140...


US Ex-Im 2013 Competitiveness Report provides tidbits of OECD ECA data

(Export Import Bank, Washington, June 2014) Ex-Im's annual competitiveness report provides useful statistics about volumes of ECA financing not published by the OECD over the last few years, by OECD and non-OECD countries, by type of financing, trends, etc. For example:

Fig.1 p.3 GLOBAL ECA ACTIVITY, 2011-2013 (BILLIONS USD)

Fig. 4 p.17 NEW MEDIUM- AND LONG-TERM OFFICIAL EXPORT CREDIT VOLUMES, 2007 – 2013 (BILLIONS USD)
 
(The latest OECD figures are only for 2010!)
http://www.exim.gov/about/library/reports/competitivenessreports/loader.cfm?csMo...


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